GeekWire Seattle’s tech paradox: Amazon's layoffs and the AI boom — or is it a bubble?
Nov 1, 2025
Amazon's surprising layoff of 14,000 employees stands in stark contrast to the bustling AI scene in Seattle. The hosts debate if the current AI enthusiasm is sustainable or just a bubble. They also explore the implications of job cuts on local talent and potential startup growth. The discussion shifts to the ambitious Cascadia high-speed rail, weighing its benefits against concerns about whether it truly addresses existing connectivity issues. With alternatives like electric flights on the table, the conversation unfolds into a multifaceted glimpse of Seattle's tech landscape.
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Episode notes
Cloud Growth Signals Real AI Demand
- Major cloud providers are seeing real revenue growth that supports heavy AI infrastructure spending.
- That demand suggests parts of the AI build-out reflect genuine business adoption, not pure hype.
Financial Engineering Is A Bubble Red Flag
- Financial engineering and unusual deal structures around AI raise bubble warnings.
- When profits hinge on paper valuation gains, the market shows classic bubbly signals.
Paper Gains Can Mask Profit Reality
- Amazon booked a $9.5B paper gain from Anthropic valuation changes that boosted quarterly profits.
- Such non-cash accounting swings can mask the underlying operational performance picture.
