Good morning. I couldn’t assemble flat-pack furniture if my life depended on it. Sometimes, it feels like it actually does. That’s why I’m thrilled about this startup’s mission: Make US manufacturing easier than following an Ikea manual.
In today’s big story, BI’s Hugh Langley exclusively reports on Google ramping up the pressure on workers to use AI for everything — or risk falling behind. Googlers told Hugh how they feel about it.
What’s on deck:
Markets: Infamous market bear Michael Burry appears to have flipped his stance on stocks.
Tech: Hundreds of Microsoft employees are comparing compensation in a giant spreadsheet, BI exclusively reports.
Business: Target’s next CEO already has a plan to revive the retailer.
But first, the competition is fierce.
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The big story
Google under pressure
Justin Sullivan/Getty Images
For Googlers, the message is clear: use AI to make yourself more productive — or get left behind.
Some are excited about it, others are doing it grudgingly, one Google engineer told Hugh. Either way, their boss needs them to do it.
Google is under pressure. In an all-hands meeting last month, CEO Sundar Pichai said that as rival companies leverage AI, Google needs to rise to the challenge if it wants to compete, employees who heard the remarks told BI.
He’s not wrong about the competition. Microsoft told workers in June that “using AI is no longer optional.”
In a frank blog post, GitHub’s CEO said developers have a choice: embrace AI, or “get out of your career.”
The rivals are becoming lean, mean, and increasingly machine. These directives apply as much to the companies as to their workers. If they fall behind their competitors — as a worker may fall behind a colleague — they risk never catching up.
Getty Images; Tyler Le/BI
The future of the software engineering profession will be a tale of the haves and have-nots.
That’s according to Meta’s chief technology officer. “The engineers who master the tools to the point that they can’t themselves be replaced by the tools command a premium,” he said on Monday.
Google seems to know this — and it’s watching its engineers closely. Pichai said in June that engineers’ weekly productivity hours are up 10% thanks to AI.
Some companies are tracking employee AI use on a more granular level. Three providers of worker-tracking software told BI they’ve seen a sharp rise in demand over the past two years. Companies want their workers to use AI, and they aren’t taking risks.
It can be an unpleasant message to hear. Few people enjoy receiving instructions that come with stark warnings. That said, the Google employees who spoke with BI seem on board.
“It seems like a no-brainer that you need to be using it to get ahead,” one engineer told Hugh.
In Google’s internal message board, BI found more skeptical remarks: “You know a technology works and is great when you’re forced to praise it to maintain your livelihood.”
In this race, it seems there is no medal for second place. In the end, there may only be the companies that kept up, and the ones that didn’t.
3 things in markets
dbox / Foster + Partners
1. JPMorgan’s new HQ blurs the lines between work and life. The bank’s new Midtown Manhattan office is filled with a luxury gym, a massive food hall, a 24/7 grab-and-go option, and more. Headhunters, consultants, and management experts told BI those wrap-around perks reinforce Wall Street’s work-as-life culture, though.
2. Don’t lose faith in major tech stocks. This week’s sell-off is likely driven by anticipation of Fed Chair Jerome Powell’s speech at Jackson Hole on Friday, wealth manager Jeremy Hartle told BI. UBS said it’s still confident in the sector despite the selling.
3. The “Big Short” investor seems to have done a 180. Michael Burry, one of the market’s most famous bears, appears to have overhauled his stock portfolio, according to an update from his firm last week. He’s swapping bearish puts for bullish calls, and is betting on ailing companies like Lululemon to execute a turnaround, portfolio gurus told BI.
3 things in tech
Ben Kriemann/Getty Images
1. How much Microsoft employees say they make. It’s review season at the software giant, and employees are comparing notes on compensation in a large spreadsheet, BI’s Ashley Stewart exclusively reports. With 850 entries and counting, here’s what employees across cloud, AI, and other teams have said they earn in salary, stock, and bonuses.
2. Inside Meta’s massive AI restructuring. Alexandr Wang, the leader of Meta Superintelligence Labs, announced the biggest reorganization of the company’s AI operations in a memo sent to employees. Most team leaders will report to Wang, and the company will dissolve yet another major AI unit.
3. It’s not just AI talent: Google is paying the big bucks for celebs. Google flexed its marketing might with a star-studded Pixel event, featuring cameos from “Call Her Daddy” podcaster Alex Cooper, NBA star Steph Curry, and more. The tech giant also announced a new partnership with Curry, who will serve as its “Performance Advisor” across its various products.
3 things in business
Getty Images; Tyler Le/BI
1. Sin City’s sluggish summer. Las Vegas is in the middle of a vibe shift. Since gambling has expanded to other cities and consumers are starting to expect more high-end experiences, Vegas is losing some of its appeal to the more budget-conscious thrill-seekers. But it’s not dead yet.
2. Target’s new CEO has a plan to get the retailer back on track. In its earnings call, Target announced COO Michael Fiddelke will take over as CEO in February. Fiddelke, who spent the past quarter leading a new acceleration effort, laid out a three-part plan that he said is based on “knowing what makes Target Target.”
3. TJX’s secret weapon to keep prices low. As other retailers have started passing tariff costs onto consumers, the company behind T.J. Maxx, Marshalls, and Home Goods has been able to soften the blow and keep sales and profits strong. Its CEO credited TJX’s price negotiation strategy and how well its buying and allocation teams work in tandem.
In other news
What’s happening today
Jackson Hole economic policy symposium commences.Walmart reports earnings.Fox launches direct-to-consumer streaming service.
Hallam Bullock, senior editor, in London. Meghan Morris, bureau chief, in Singapore. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Kiera Fields, editor, in London. Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave).
