AI spending is driven by expectations of higher productivity and profits, with companies investing hundreds of billions in chips, data centers, software, and services. Investors focus on whether AI replaces workers or mainly boosts output, since replacement could disrupt industries more severely. Analysts have questioned whether firms will sustain AI capex if measurable returns do not materialize. At a Bernstein conference, Uber CFO Balaji Krishnamurthy cited reduced hiring rather than revenue gains, stating the engineering hiring ramp for the remainder of the year is significantly lower than expected earlier in the year.
"“What we have done is we have tempered the pace of hiring, and we - and this is broadly across the company, but specifically from an engineering standpoint - the hiring ramp we have for the remainder of the year is significantly lower than what we thought it would be when we came into this year.”"
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