The article discusses the recent panic surrounding the launch of Moonshot AI's Kimi model, which has reignited debates about American competitiveness in the AI space and the implications of open versus proprietary AI systems. The conversation, highlighted in the TechCrunch Equity podcast, touches on reactions from major companies like OpenAI and Anthropic, who are lobbying against open Chinese models, fearing competition. The discussion indicates that fears over Chinese AI could lead to protectionist measures that might favor a select few U.S. tech companies rather than fostering widespread innovation. The recurring pattern of anxiety over competitive advancements in AI is noted, alongside potential biases and security risks linked to Chinese models. Overall, the article raises questions about the efficacy of heavy regulations on AI models and who truly benefits from them.

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Information for Moonshot AI's Kimi chatbot arranged on a computer. Image Credits: Raul Ariano/Bloomberg (opens in a new window) / Getty Images

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Making sense of the panic over Chinese AI

Anthony Ha

12:40 PM PDT · July 26, 2026

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The launch of the latest AI model from a Chinese company — Moonshot AI’s Kimi — reignited debates around American competitiveness and open versus proprietary AI.

While there was plenty of conversation on social media, it seems the debate is also happening behind the scenes in Washington, D.C., where OpenAI and Anthropic have reportedly lobbied regulators with concern about open Chinese models.

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I discussed why this seems to be such a hot button issue. Beyond suggesting that certain folks should “touch grass” rather than spending their weekends arguing on X, Sean noted that in many ways, this “feels like we’re seeing repeats of prior freakouts,” with everyone in Silicon Valley “expecting that something is going to arrive and blow everything else away.”

And Kirsten noted that putting heavy restrictions on Chinese AI models could primarily benefit a handful of companies: “Are we accelerating and ensuring that Americans win the AI race, or are we ensuring that certain frontier labs do better than others?

Keep reading for an excerpt of our conversation, edited for length and clarity.

Anthony Ha: For folks who have followed the discourse around Chinese AI, this will probably be very, very familiar from the launch of DeepSeek, where basically a Chinese model comes out; on some benchmarks, it does as well, or at least seems competitive with some of the frontier models; and a certain portion of the tech industry loses their mind.

Some of this [debate] got extra scrutiny because one of the people posting about it was [an executive] at OpenAI. But in general, there [is] this recurring question of: Can Chinese companies beat US companies, at least in some aspects, and do it much more cheaply and in a much more open way?

OpenAI's own model went rogue before Kimi had Wall Street sweating | Equity Podcast

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Sean O’Kane: Yeah, there are many elements of this that feel like we’re seeing repeats of prior freakouts. I think one of my favorites is: Everybody is so ready [for] and so expecting that something is going to arrive and blow everything else away. And I think my favorite example of that this past week was people showing off that “My gosh, Kimi made in 30 minutes an entire replication of macOS.” And yeah, it made a pretty impressive graphical reproduction of what macOS looks like, but it’s not an OS.

We keep seeing these things happen over and over again, where everybody’s so jumpy in the tech industry. And I think in particular, with some of the Chinese models that come out, there’s this expectation, and I think this gets to the core of why people reacted the way they reacted last weekend. (Also, by the way: Go outside, touch grass, it’s the weekend. Everybody in the industry was trading barbs on Twitter all weekend.) But this jumpiness is really interesting to me because we’re now a week out and I don’t think anybody’s feeling like the end is nigh like they were a week ago.

Kirsten Korosec: We have a really great story by one of our reporters, Tim Fernholz, who tries to unpack the psychosis around this here in the United States. He points to a number of reasons. And concludes — and I don’t want to conclude it for him, but I think that there’s one that rises more to the top than others.

There’s concerns that these Chinese open weight models might have an implicit bias towards China, there’s another worry about security risks and guardrails. But there’s also a pretty big idea here, which is protectionism, and who is going to quote-unquote “win the race”? Is it going to be the US or China? And that seems to be driving a lot of what the fear is.

I don’t know, Anthony, if you agree with that?

Anthony: I completely agree. I think the China aspect always adds this certain level of hysteria. And that’s not to say that people shouldn’t be concerned about how the U.S. stacks up against China across different industries. But it gets so amped up.

The other thing this reminds me of is the discussion around TikTok a few years ago. And again, it wasn’t that I thought that the concerns around TikTok were totally made up, but that the level of how panicked people got — it seems as soon as you add the word China to any discussion, things just ramp up dramatically. And then in this case, it’s linked to this discussion about open [weights] and this idea that AI is so powerful and so dangerous that the only way we can control it is with these proprietary models from these American frontier companies.

Obviously, most people saying this [have] reasons why they want to say that. David Sacks, who was the AI czar for the Trump administration [and] now has a different role in the Trump administration, was shouting on X about how, “I can’t believe people are opposing data centers, we’re tying ourselves in knots, there’s too much regulation.” And so it’s a way to argue for the positions that they already had around AI. “My gosh, if China beats us, that’s unthinkable, so you have to do what I want to do anyway.”

Kirsten: Right, and if you were to put across-the-board bans on Chinese open weight models — I’m not saying that there aren’t real concerns here, but let’s just play that out. If we were to do that, it would benefit models created by OpenAI, for instance, and it would force enterprises to use those as opposed to using models like Kimi.

So you really have to ask the question: Are we accelerating and ensuring that Americans win the AI race, or are we ensuring that certain frontier labs do better than others?

Sean: At this point, we should say a lot of this discussion really got kicked off by the head of strategic futures at OpenAI, Dean Ball, who was the first one to come out with this really long post mentioning some of these concerns.

Part of me thinks the reaction to this was because people disagreed with what Dean wrote. Part of me also thinks the reaction was driven by the fact that he kind of just said the thing out loud. He basically said the US should create regulatory FUD — fear, uncertainty, and doubt — and muck up the ability for these open weight models to compete with the US. [Ball later backed away from this argument.]

And to me, I think you can read in some of the responses from folks, like, “You’re not supposed to say that out loud, Dean.”

Topics

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Anthony Ha

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Anthony Ha is TechCrunch’s weekend editor. Previously, he worked as a tech reporter at Adweek, a senior editor at VentureBeat, a local government reporter at the Hollister Free Lance, and vice president of content at a VC firm. He lives in New York City.

You can contact or verify outreach from Anthony by emailing anthony.ha@techcrunch.com.

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I tried out OpenAI’s new AI keypad — which will be fun for some coders and slightly mystifying to everyone else

Lucas Ropek

5:23 PM PDT · July 24, 2026

OpenAI launched its first piece of hardware last week — a fancy little keypad built to pair with ChatGPT. Micro, which was developed in collaboration with specialty keyboard designer Work Louder, is essentially an artisanal workplace novelty that many tech enthusiasts will love and that may leave everyone else a little puzzled.

OpenAI’s entrance into the hardware market hasn’t arrived without drama. Several weeks ago, Apple sued the AI lab and accused it of trade theft — kicking off what’s certain to be a long-simmering legal battle. Meanwhile, news of another smart home product in development at OpenAI has also raised eyebrows, as the supposed device — which is being built to pair with ChatGPT — was reportedly developed by former Apple engineers.

Until the legal battle works itself out and OpenAI’s broader hardware ambitions materialize, the most the startup has to offer is Micro — a funky little keypad clearly engineered to delight the tech industry’s code monkeys.

OpenAI sent TechCrunch a Micro test unit. The first big thing you notice when initially handling the keypad is that it’s a sturdy little device — enough so that if the AI accessory thing doesn’t end up working out, it could easily double as a paperweight. The other thing you might notice (and I am not the only one to point this out), is that the packaging — an immaculate white box with a sleek, clean aesthetic — is pretty Apple-coded. Make of that what you will.

The keypad’s layout involves six frosted “agent” keys at the top of the pad, which can be customized to carry out specific tasks within ChatGPT or its agentic coding tool Codex. Below them are six command keys, which can be used to control those programs. You can pair your Micro with your computer either through a Bluetooth connection or a USB cable.

Image Credits: Lucas Ropek/TechCrunch

Perhaps the most convenient thing Micro offers is a button for voice dictation — meaning you simply tell the app what you want done and it will get busy working on your behalf. Just hold down the dictation button and start talking. When you’re done, tap the “send” button next to it to submit your request.

You can customize your Micro keypad within ChatGPT itself, where a Micro tab allows you to adjust everything from the brightness of the light from the keys to the specific commands and projects you want tied to those keys.

OpenAI's own model went rogue before Kimi had Wall Street sweating | Equity Podcast

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Hard-core coders — the device’s actual target audience — haven’t exactly embraced it. Reviews by Redditors have largely negative, with one Reddit user calling it “ a prank and not a real product,” and others saying serious coders won’t touch it. A review by the smaller independent outlet Aftermath was even harsher, calling the $230 price tag hard to justify next to cheaper DIY and off-the-shelf alternatives. (The title of that review: “OpenAI’s expensive macropad feels engineered to piss me off specifically.”)

It’s definitely the case that new users may need some time to figure out how Micro works and what to do with it.

Once I figured out how to program the keypad to my liking, I found it was actually pretty fun. You can assign various ChatGPT sessions to specific keys, which then allows you to easily toggle back and forth between all of your various projects. When you combine that with the dictation button, it makes the whole experience considerably more efficient and enjoyable.

But there’s still a learning curve. Micro’s buttons are color-coded. White means an agent is idle, blue means its thinking, green means a task is complete, and red means there’s been an error. You’ll need to memorize that, along with memorizing which specific projects are coded to each key.

The big question is whether the Micro keypad is functionally easier to use than just continuing to work on your laptop. In short: Why would I spend a week learning how to program and operate this thing when I already know how to use my computer’s mouse and keyboard?

Ultimately, your experience with the Micro will depend heavily on how much you use ChatGPT. Since I don’t use AI much day to day, I’m probably not the target audience for it.

That said, if you’re a ChatGPT power user, have $230 to spare, and like vintage-looking hardware with clicky buttons, Micro probably isn’t the worst purchase you could make — it might even brighten your day a little.

Topics

AI, AI, ChatGPT, codex, micro, OpenAI

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Lucas Ropek

Senior Writer, TechCrunch

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Lucas is a senior writer at TechCrunch, where he covers artificial intelligence, consumer tech, and startups. He previously covered AI and cybersecurity at Gizmodo.

You can contact Lucas by emailing lucas.ropek@techcrunch.com.

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Monday.com is the latest tech company to blame AI for layoffs — here are 20 others

Rebecca Bellan

Connie Loizos

6:30 PM PDT · July 25, 2026

Monday.com, the Tel Aviv-based work management software company known for its colorful, customizable project-tracking boards, this week became the latest tech company to cite AI as a factor in job cuts. On Wednesday, the company said in an SEC filing that it will lay off about 20% of its workforce, or just over 600 employees, as part of a “restructuring plan” tied to its “ongoing transformation of its product, marketing, and go-to-market strategy” in support of “a leaner, more focused operating model” as it continues investing in its “AI-driven growth strategy.”

Co-founder Eran Zinman told employees in a LinkedIn memo that the move “was not made to reduce costs or replace people with AI,” positioning it instead as adapting the organization to a new AI-first vision the company laid out roughly a year ago when it rebranded around a platform-wide AI push. Monday.com, which has two offices in the U.S., expects $45 million to $55 million in net restructuring charges but still projects up to 20% year-over-year revenue growth for 2026.

So far, according to new Financial Times analysis, U.S. tech companies have slashed nearly 140,000 jobs since the start of this year, with Amazon, Oracle, Meta, and Microsoft alone accounting for almost 50,000 of those cuts as they funnel hundreds of billions of dollars into AI data center buildouts. Interestingly, the FT also found that companies citing AI as a factor in job cuts have underperformed the Nasdaq by almost 10% in the 30 trading days following their announcements, suggesting the market doesn’t entirely buy the stories that the companies are telling.

Still, the picture isn’t uniformly bleak. The FT notes that AI-focused companies like Anthropic and OpenAI are hiring rapidly, absorbing some of the talent shed elsewhere in the industry. And within some of the very companies making cuts, headcount is shifting rather than disappearing entirely. Meta, for instance, earlier this year moved roughly 7,000 employees into new AI-focused roles even as it laid off 8,000 others, and IBM says it’s tripling entry-level hiring for AI and hybrid-cloud roles alongside recent cuts.

Below is a running look — in reverse chronological order — at the bigger tech companies that have announced significant layoffs this year with AI as a stated factor.

Microsoft — July 9, 2026. Microsoft cut about 4,800 roles, or 2.1% of its global workforce, most of them in its Xbox gaming unit, resetting the business only three years after acquiring Activision Blizzard for $75 billion, per the FT. Separately, it offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. The company said the role eliminations were “not being replaced by AI” but acknowledged “AI is changing how work gets done.” CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and was expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.

Oracle — June 22, 2026. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, which means more cuts than was previously known, including because of AI. “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce,” the company said in an annual financial regulatory filing.

OpenAI's own model went rogue before Kimi had Wall Street sweating | Equity Podcast

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GitLab — June 3, 2026. GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows. CEO Bill Staples said agentic workloads are “pushing competitors to the brink” and that the company had begun a “generational rebuild” of its core infrastructure to support what he called 100x growth requirements. GitLab is exiting 22 countries, flattening management layers, and partnering with an unspecified AI lab to rebuild its platform for agent-scale workloads. The company reported first-quarter revenue of $264 million, up 23% year-over-year, and expects to incur $30 to $35 million in restructuring costs.

Google — ongoing through May. Alphabet’s Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time and its backlog nearly doubled to over $460 billion. Over the past year, Google has cut more than a third of the managers overseeing small teams — 35% fewer managers with fewer direct reports. Unlike most companies on this list, Google has never announced a single overall number — the cuts have come through a rolling performance review process, a voluntary buyout program, and structural reorganizations, with outside estimates putting the 2026 total at between 1,500 and 3,000+ engineers.

Intuit — May 20, 2026. Intuit announced plans to eliminate roughly 3,000 jobs — about 17% of its total workforce — in a restructuring centered on reducing complexity and reallocating resources toward AI. CEO Sasan Goodarzi reportedly told staff the company is reducing complexity and simplifying the structure so it can deliver better products.

Meta— May 20-21, 2026. Meta laid off about 8,000 employees, roughly 10% of its workforce, while moving about 7,000 employees into new AI-focused roles (that they reportedly hate). CEO Mark Zuckerberg told staff the cuts were necessary because “success isn’t a given” in AI.

Cisco — May 14, 2026. Cisco announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue. CFO Mark Patterson said: “This was really not a savings-driven restructure… this is more [about] realigning … resources around silicon, optics, security and AI.”

Cloudflare — May 7-8, 2026. Cloudflare cut about 20% of its workforce (1,100 people), reporting quarterly revenue of $639.8 million, up 34% year-over-year and the highest single quarter in company history. CEO Matthew Prince wrote that “the vast majority of those we laid off last week were measurers” — middle management, finance, legal, internal auditing, and revenue recognition.

General Motors— May 12, 2026. GM eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions. A person familiar with the cuts told CNBC that AI played a role in the decision but that it wasn’t the only reason. GM’s statement said it was “transforming its Information Technology organization to better position the company for the future.” Despite the cuts, the company still had roughly 80 open IT positions, including roles in AI, motorsports, and autonomous vehicles.

Coinbase — May 5, 2026. The crypto exchange said it was cutting about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency. The company flattened its organizational structure to five layers below the CEO and COO, and said it would experiment with “one-person teams” combining engineering, design, and product roles. CEO Brian Armstrong wrote that AI had changed the pace of work dramatically — “engineers use AI to ship in days what used to take a team weeks” — and that the company needed to “leverage AI across every facet of our jobs.”

PayPal — May 5, 2026. PayPal announced plans to cut around 20% of its workforce over the next two to three years — north of 4,500 jobs — as part of a turnaround strategy centered on AI adoption and organizational simplification. CEO Enrique Lores told investors the company would “aggressively adopt AI” in its development processes and formed a new “AI transformation and simplification” team reporting directly to him, tasked with redesigning the company’s processes “function by function.” Lores framed the cuts as removing organizational layers, and said AI would extend well beyond coding into customer service, support operations, and risk management.

Microsoft— April-May 2026. Microsoft offered buyouts structured as voluntary separations, without disclosing how many employees these would impact. CFO Amy Hood said total headcount declined year-over-year in fiscal Q3, and is expected to keep declining as the company focuses on “building high-performing teams that operate with pace and agility” amid rising AI investment.

Snap— April 16, 2026. Snap cut roughly 16% of its global workforce — about 1,000 full-time employees — and closed more than 300 open roles, with CEO Evan Spiegel citing AI advancements as a key driver. “Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel wrote in a memo filed with the SEC. The company said it had already seen small squads using AI tools to drive progress across Snapchat+, ad platform performance, and infrastructure efficiency.

IBM — rolling through 2026. Between Q4 2025 cuts and April 2026 Red Hat engineering reductions, estimates range from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000. Bloomberg reported IBM plans to triple its U.S. entry-level hiring for AI and hybrid-cloud roles, even as roughly 200 HR positions were replaced by AI agents. An IBM spokesperson described the Q4 2025 round as a routine rebalancing affecting “a low single-digit percentage” of its global workforce.

Atlassian — March 11, 2026. Atlassian cut about 1,600 jobs (10% of its workforce) to “rebalance” toward AI and enterprise sales, even as shares rose nearly 2% on the news. CEO Mike Cannon-Brookes said: “Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas. It does.”

Dell— January 30 (though disclosed in March 2026). Dell’s total workforce fell about 10% in fiscal 2026 — roughly 11,000 jobs — to about 97,000 employees from 108,000 a year earlier, with $569 million spent on severance. The cuts came as Dell projected its AI-optimized server revenue could double in fiscal 2027.

Oracle — March 5-31, 2026. As noted above, Oracle began telling employees it would be cutting thousands of jobs via terminal emails. The cuts came even as Oracle posted $3.7 billion in quarterly net income, up 27% year-over-year, with remaining performance obligations up 325% to $553 billion — savings redirected toward AI data centers. The cuts that would later total 21,000 over 12 months, as Oracle disclosed in its June 22 annual filing.

Block — February 26-27, 2026. Jack Dorsey’s Block cut 4,000 jobs — nearly half its workforce, down to under 6,000 from over 10,000. Dorsey wrote on X: “We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company.” He added: “I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes.”

Salesforce — February 10, 2026. Salesforce laid off fewer than 1,000 employees across marketing, product management, data analytics, and its Agentforce AI unit. The company told Fortune, “Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles.” This followed an earlier cut of about 4,000 customer-support roles, shrinking that team from roughly 9,000 to 5,000, with CEO Marc Benioff saying the company needed “less heads” because AI agents handle the work.

Amazon — January 28, 2026. Amazon cut 16,000 corporate jobs, following 14,000 cuts in October 2025 — about 9% of its corporate workforce in three months. The company said it was part of “strengthen[ing] our organization by reducing layers, increasing ownership, and removing bureaucracy.” CEO Andy Jassy had said in June 2025 that, “As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today… in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

Topics

AI, AI, Layoffs, TC

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Rebecca Bellan

Senior Reporter

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Rebecca Bellan is a senior reporter at TechCrunch where she covers the business, policy, and emerging trends shaping artificial intelligence. Her work has also appeared in Forbes, Bloomberg, The Atlantic, The Daily Beast, and other publications.

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Connie Loizos

Editor in Chief & General Manager

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Loizos has been reporting on Silicon Valley since the late ’90s, when she joined the original Red Herring magazine. Previously the Silicon Valley Editor of TechCrunch, she was named Editor in Chief and General Manager of TechCrunch in September 2023. She’s also the founder of StrictlyVC, a daily e-newsletter and lecture series acquired by Yahoo in August 2023 and now operated as a sub brand of TechCrunch.

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