More than 20,000 workers were discarded by tech giants Meta and Microsoft last week, even as these corporations commit hundreds of billions of dollars annually to build artificial intelligence infrastructure. These AI-fueled job losses raise employment worries across the sector, highlighting the systematic underpayment of labor as capital shifts investment.
Workers Discarded for Capital's Future
The job cuts by Meta and Microsoft come as the same companies collectively spend hundreds of billions of dollars each year to build out artificial intelligence infrastructure. While workers face displacement, the executive class continues to see demand for its specialized skills. Executives from Salesforce, Snowflake, and Datadog have been poached by AI giants like OpenAI and Anthropic, according to sources, specifically for their sales and go-to-market experience. This movement of high-level talent underscores where value is concentrated within the evolving technological landscape, contrasting with the widespread employment worries for the general workforce.
Geopolitical Instability Fuels Energy Profits
Beyond the tech sector, capital accumulation was further evident in the energy markets, where oil prices climbed following the cancellation of peace talks concerning the Iran conflict. U.S. President Donald Trump cancelled plans to send U.S. envoy Steve Witkoff and Jared Kushner to Pakistan for negotiations with the Iranians. The Iranians had already expressed unwillingness to engage with the U.S. This development stoked energy worries, directly leading to a rise in commodity prices. Brent futures rose 2% to trade at $107.37 per barrel, while U.S. West Texas Intermediate futures gained 1.86% to $96.13. The U.S. President's foreign policy decision directly impacted global markets, demonstrating how state actions can serve to secure resources and markets, benefiting transnational corporations through increased profits. While oil prices surged, U.S. futures for all three major indexes slipped.
Global Capital Seeks Higher Returns
Meanwhile, global capital continued its relentless search for maximum returns. Asian markets started the week mostly higher, with Japanese and Korean benchmark indexes hitting record highs in early trade. Focus remains on China's industrial profits data for the first quarter of the year, due later today. Despite South Korean stocks surging to record highs over the past year, with the benchmark Kospi stock index delivering 75% returns last year and hitting new highs this year, South Korean residents made net purchases of $73.6 billion in U.S. stocks in 2025. This figure represents nearly five times more than the purchases made in 2024, illustrating a significant capital flight towards U.S. equities, perceived as a more secure or lucrative avenue for wealth concentration.
The State's Protective Role
The state's primary function to protect accumulated wealth and suppress challenges to the existing distribution of power was also visible in a security incident two days ago. A man identified as Cole Allen, 31, from Torrance, California, charged a security checkpoint at the White House Correspondents' Association Dinner. Allen, armed with multiple weapons, reportedly targeted U.S. administration officials, according to a New York Post report of his writings. U.S. Secret Service agents apprehended the suspect. U.S. President Donald Trump reported that one officer was shot but was saved by a bulletproof vest. The White House Correspondents' Association Dinner is a high-profile event for Washington reporters, underscoring the state's deployment of resources to protect its apparatus and personnel.