In a significant development, the United States and China are poised to engage in discussions aimed at establishing regulations around artificial intelligence. Treasury Secretary Scott Bessent announced on Thursday that one of the key items on the agenda will be the creation of a protocol designed to prevent nonstate actors from accessing powerful AI models.

Speaking from Beijing during an interview with CNBC, Bessent refrained from offering specific details, including a timeline for these conversations. However, it has been anticipated that these discussions would occur between Chinese leader Xi Jinping and President Trump during their upcoming summit in Beijing.

Should these discussions proceed, it would mark the first formal engagement on AI between the two nations during Trump’s second term. The rapid advancement in AI capabilities has raised significant alarm regarding potential misuse by hackers or terrorist organizations, with fears that this technology could potentially operate beyond human control.

"We are entering a new phase where the two leading AI powers are going to commence talks," Bessent stated. "We aim to establish a framework for best practices in AI to ensure that nonstate actors do not gain access to these critical models."

Bessent Announces U.S. and China Will Begin Talks on A.I. Safety

A sunlit international summit room where two delegates—one American, one Chinese—lean across a polished wooden table strewn with papers titled “AI Safety,” natural light flooding through floor-to-ceiling windows; behind them hang the U.S. and China flags side by side, and a subtle digital screen on the wall reads “AI Safety Talks.”

U.S. and China Will Start Discussing A.I. Safety, Bessent Says - The New York Times

- U.S. and China to discuss AI guardrails and protocols for powerful models.  
- Discussions expected between Xi Jinping and President Trump during upcoming summit.  
- Concerns rise over AI technology being weaponized by hackers and terrorists.  

The United States and China will discuss guardrails on artificial intelligence, including establishing a protocol for keeping powerful A.I. models out of the hands of nonstate actors, Treasury Secretary Scott Bessent said on Thursday.

Mr. Bessent, who was speaking from Beijing in an interview with CNBC, did not give more details, including when these discussions would take place. But Xi Jinping, China’s leader, and President Trump had been expected to discuss A.I. during their summit in the Chinese capital.

If these talks happen, it would be the first time the two countries formally take up the issue during Mr. Trump’s second term. The capabilities and usage of A.I. have grown rapidly, and so have concerns that this technology could be weaponized by hackers and terrorists, or spiral out of human control.

“The two A.I. superpowers are going to start talking,” Mr. Bessent said. “We’re going to set up a protocol in terms of, how do we go forward with best practices for A.I. to make sure nonstate actors don’t get ahold of these models.”

U.S. and China Will Start Discussing A.I. Safety, Bessent Says

On May 28, 2024, Visa's headquarters in San Francisco announced a significant reduction in workforce, planning to cut approximately 2,600 jobs, which represents around 7% of its total employees. This move comes as the payment processing giant aims to restructure its technology and product teams while increasing its focus on artificial intelligence within the digital payments space. 

In a memo to staff, CEO Ryan McInerney emphasized the need for greater efficiency and the reallocation of resources to areas deemed to hold greater potential for future growth. He stated, “To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work. AI is also helping to accelerate this evolution and shape how work gets done at Visa.”

A spokesperson for the company confirmed these job cuts to Reuters, highlighting that the majority of eliminations will impact the technology and product divisions, though other departments could also see layoffs. The specific number of San Francisco headquarters and Foster City campus positions affected has yet to be revealed.

Visa established its global headquarters at Mission Rock in San Francisco in 2024, employing nearly 1,000 personnel at that time, alongside a large campus in Foster City for its technology and product staff. Notifications for affected employees were expected to start being delivered on the same day as the announcement.

As of the conclusion of its 2025 fiscal year, Visa reported a global workforce of about 34,100, reflecting an 8% increase from the previous year. The planned layoffs of 2,600 employees would represent a bit more than 7% of this total.

McInerney expressed that the company intends to redirect its investments into areas with high growth potential, such as cross-border transactions, B2B payments, services targeted at affluent consumers, geographic expansion, and innovative digital payment solutions involving stablecoins. He noted, “As a result of the choices we have made over the past few years, we are entering a new era in commerce with a business that has real momentum.”

While the integration of artificial intelligence is a significant factor in Visa's restructuring, it is not the sole reason for the job reductions. The company has been progressively adopting AI across its operations. In its 2025 annual report, Visa revealed that nearly 26,000 employees had utilized an internal generative-AI tool for over 261,000 interactions since its launch in March.

In related news, Mastercard recently announced a workforce reduction of about 4% to reallocate their spending towards other strategic initiatives, while financial technology firm Block also revealed plans to cut around 4,000 jobs. Visa's layoffs come on the heels of previous job cuts across the Bay Area, including hundreds of roles in San Francisco and San Mateo that were reported in late 2024, notably affecting several management positions.

Visa, the payments giant based in San Francisco, reveals 2,600 job cuts.

Dark corporate atrium at dusk, a massive Visa logo looming on the far wall, beneath it a conference table strewn with pink slips stamped “2,600 layoffs,” empty ergonomic chairs pushed aside, scattered briefcases and coffee mugs on the polished floor, deep shadows swallowing the edges of the room, an American flag drooping in the corner, moody tungsten lighting casting long, dramatic silhouettes.

Visa to cut 2,600 jobs as AI reshapes work at San Francisco payments giant - San Francisco Chronicle

- Visa plans to eliminate 2,600 jobs, representing roughly 7% of its workforce.  
- The job cuts aim to reorganize around artificial intelligence and digital payment innovations.  
- Most cuts will affect technology and product teams, with notifications starting Tuesday.  

The Visa headquarters in San Francisco on May 28, 2024. Visa plans to cut about 2,600 jobs, or roughly 7% of its workforce, as it reorganizes around artificial intelligence and other changes in digital payments. The company has not said how many positions will be eliminated at its San Francisco headquarters or Foster City campus. Yuri Avila/The Chronicle

Visa plans to eliminate about 2,600 jobs, or roughly 7% of its workforce, as the San Francisco payments giant reorganizes its technology and product operations and expands its use of artificial intelligence.

Chief Executive Ryan McInerney informed employees of the cuts in a memo Tuesday, saying Visa needed to become more efficient and shift resources toward businesses it sees as having greater growth potential.

“To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work,” McInerney wrote, according to excerpts reported by multiple media outlets. “AI is also helping to accelerate this evolution and shape the way work gets done at Visa.”

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A Visa spokesperson confirmed the planned reductions to Reuters. Most of the cuts will fall within the company’s technology and product teams, although positions elsewhere in the company are also expected to be affected.

The company has not disclosed how many Bay Area employees will lose their jobs.

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Visa opened its global headquarters at Mission Rock in San Francisco in 2024, with nearly 1,000 employees working there at the time. It also maintains a large Foster City campus that houses many of its technology and product employees.

Affected workers were expected to begin receiving layoff notifications Tuesday.

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Visa plans to cut about 2,600 jobs, or roughly 7% of its workforce, as it reorganizes around artificial intelligence and other changes in digital payments. The company has not said how many positions will be eliminated at its San Francisco headquarters or Foster City campus. Yuri Avila/The Chronicle

Visa employed about 34,100 people worldwide at the end of its 2025 fiscal year, an increase of 8% from the previous year, according to its annual report. Cutting 2,600 positions would amount to slightly more than 7% of that reported total.

McInerney said Visa intended to reinvest in what the company considers its highest-potential opportunities. Those areas include cross-border transactions, payments between businesses, services for affluent consumers, geographic expansion and digital-payment products involving stablecoins, according to the employee memo.

“As a result of the choices we have made over the past few years, we are entering a new era in commerce with a business that has real momentum,” McInerney wrote.

Artificial intelligence was a significant factor in the reorganization but was not the sole reason for the reductions.

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Visa has been steadily incorporating AI into its operations and products. In its 2025 annual report, the company said nearly 26,000 employees had used an internal generative-AI tool to conduct more than 261,000 chats since its introduction in March of that year.

Mastercard announced earlier this year that it would eliminate about 4% of its workforce as it redirected spending toward other priorities, while financial technology company Block announced plans to cut about 4,000 jobs.

Visa’s reductions also follow previous Bay Area layoffs. In late 2024, the company disclosed plans to eliminate hundreds of positions in San Francisco and San Mateo, including numerous management jobs.

San Francisco payments giant Visa announces 2,600 layoffs

Apple has officially joined the exclusive $5 trillion club, becoming the second company ever to achieve such a market valuation. This milestone was aided by a wave of investors moving away from artificial intelligence and semiconductor stocks amid a broader technology sell-off.

On Tuesday, Apple's share price peaked at $342.89, lifting its market capitalization to $5.04 trillion (£3.78 trillion), before settling slightly lower at $339.68—a valuation hovering around $4.99 trillion. Earlier this month, Apple reclaimed its status as the world's most valuable company, surpassing Nvidia, which has held the top spot since June 2025. Nvidia was also the first to surpass the $5 trillion mark last October.

The surge in Apple's valuation is attributed not only to robust demand for its product lineup but also to the company’s decision to refrain from participating in the intense competition over AI investments that has strained the cash flows of its larger tech rivals.

Apple's new valuation comes as concerns grow about the financial health of AI companies, particularly regarding their borrowing to fund datacenter expansions. This unease has contributed to a more pronounced sell-off in AI-related stocks globally. In the U.S., major semiconductor stocks experienced declines when the market opened on Tuesday, with figures for Intel, AMD, Sandisk, Western Digital, and Seagate Technology all dropping over 4%.

The Nasdaq 100 index, which tracks leading tech stocks, fell by as much as 1.8%, marking a decline of more than 10% since reaching a record high in early June, a condition identified as a market correction. Additionally, the South Korean stock market faced its lowest point since mid-April, with major semiconductor firms like SK Hynix and Samsung also experiencing significant losses exceeding 10%.

Analysts suggest the downturn is linked to renewed anxiety over AI investment spending and competition from more affordable Chinese manufacturers, especially after reports indicated that China has initiated mass production of domestically produced deep ultraviolet (DUV) chip-making equipment.

Apple's strategy to maintain stable pricing for the iPhone, amidst raises for MacBooks and iPads, has encouraged customer purchases. On Tuesday, the company also launched a leasing program in the U.S. through the payment service Klarna. The plan offers monthly payments starting at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.

"By steering clear of the AI spending frenzy, Apple focuses on enhancing customer experience over vast infrastructure investments,” commented Dipanjan Chatterjee, a vice president and principal analyst at Forrester. “The new leasing initiative cleverly shifts consumer perception by replacing the impactful initial cost with manageable monthly payments.”

Since the start of the year, Apple's stock has soared by 24%, significantly outperforming the other members of the renowned "Magnificent Seven" group of U.S. technology stocks. Looking ahead, Apple is set to announce its third-quarter earnings after the market closes on Thursday, with analysts anticipating a revenue increase exceeding 15% compared to the same period last year.

Apple reaches $5 trillion valuation, making it the second-ever company to do so as investors abandon AI stocks.

A sunlit city skyline with a gleaming skyscraper crowned by a giant Apple logo. Suited investors stride eagerly toward it, leaving behind a dark tunnel marked “AI STOCKS” scattered with flickering generic tickers. Warm natural light bathes the Apple tower, symbolizing its rise to $5 trillion as AI stocks lie deserted.

Apple becomes second ever $5tn company as investors flee AI stocks - The Guardian

- Apple became the second company to reach a $5 trillion valuation amid tech sell-offs.  
- Strong iPhone demand and steady pricing helped boost Apple's market capitalization to $5.04 trillion.  
- Investors are concerned about rising AI investment costs and competition from cheaper Chinese firms.

Apple has become only the second company to pass the $5tn valuation mark, as it benefited from investors fleeing AI and semiconductor stocks amid a wider tech sell-off.

The iPhone maker’s shares hit a session high ⁠of $342.89 on Tuesday, giving it a market ⁠capitalisation of $5.04tn (£3.78tn), then eased back to 0.8% up at $339.68 – around the $4.99tn mark.

Apple became the world’s most valuable company earlier this month, overtaking the chip giant Nvidia, which had been ⁠at the top since June 2025 and became the first company ever to breach the $5tn threshold last October.

The US consumer electronics company’s rally has been driven ⁠as much by strong demand for its products as its decision to sit out the ​AI spending race that is sapping cash ‌flows at big tech ‌rivals.

Its fresh valuation high came amid an intensifying sell-off of AI stocks around the world driven by rising concerns about AI companies’ borrowing to fund datacentre expansion.

US chip stocks extended their recent losses when Wall Street opened on Tuesday, with Intel, Advanced Micro Devices, Sandisk, Western Digital and Seagate Technology all down by more than 4%.

The Nasdaq 100 index of leading tech stocks fell by as much as 1.8% at one point, meaning since its early June record high it had fallen more than 10% – the technical definition of a market correction.

Meanwhile South Korea’s stock market slid to its lowest level since mid-April, with semiconductor companies SK Hynix and Samsung Electronics falling by more than 10%.

Analysts attributed the sell-off to renewed worries over AI investment spending, and competition from cheaper Chinese companies, after a report by the Information that China had begun mass production of homegrown deep ultraviolet (DUV) chip-making tools.

View image in fullscreen Apple’s decision to hold iPhone prices steady, despite increases last month for MacBooks and iPads, has bolstered demand. Photograph: Lucas Jackson/Reuters

Investors may also be growing jittery about the “circular funding” at the heart of the AI industry, through which artificial intelligence companies finance one another.

They have also been spooked by the announcement by Google last week that it was further increasing capital spending this year to as much as $205bn to fund its AI plans, while reporting negative free cashflow for ​the first time in its history, burning through $5.9bn in the three months to the end of June.

Apple has been shielded somewhat by being somewhat of an AI laggard. Its difficulties in developing in-house models meant it has instead relied on Google’s ‌technology to power new services such as a revamped Siri. That has spared it the hefty infrastructure costs that have left big tech investors wary.

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Apple’s decision to hold iPhone prices steady last month when it announced increases for MacBooks and iPads has also bolstered demand as buyers scooped up the company’s flagship device ahead of expected ‌price hikes later this year, analysts have said.

To aid demand, Apple on Tuesday also launched a device leasing programme in the US through the payments ​firm Klarna, under which monthly payments start at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.

“Apple has resisted the AI spending race, betting that customer experience – not infrastructure investment – will ultimately determine the winners,” said Dipanjan Chatterjee, a vice-president and principal analyst at Forrester. “The ⁠new leasing programme is a clever response: it doesn’t reduce the price ​of an iPhone, but ​it changes how consumers perceive the cost ​by replacing sticker shock with a predictable monthly payment.”

Including session gains, Apple ​stock has jumped ‌24% so far this year, ​widely outperforming the ​other six of the “Magnificent Seven” cohort of US technology stocks.

Apple is to report its third-quarter earnings after the market close on Thursday, with analysts expecting a more than 15% jump in revenue for the period compared with a year earlier.

Reuters contributed to this report

Apple becomes second ever $5tn company as investors flee AI stocks

On Tuesday, Wall Street showed a general upward trend, despite significant declines in the shares of computer chip manufacturers worldwide. Meanwhile, oil prices were seen decreasing further from the two-month peak they hit the previous week.

During afternoon trading, the S&P 500 posted a 0.3% gain, though this slight increase disguised greater volatility beneath the surface. By 12:30 PM Eastern Time, the Dow Jones Industrial Average had risen by 643 points, or 1.2%. In contrast, the Nasdaq composite index, heavily weighted with AI stocks, fell 0.2%, after briefly plummeting 9.3% from the record it set last month.

The broader U.S. market ticked upward after numerous companies reported stronger-than-expected profits for the spring quarter. Coca-Cola's stock jumped 5.1% as its revenue increased by 7%, despite CEO Henrique Braun describing a "dynamic consumer landscape."

Both Sherwin-Williams and Illinois Tool Works saw their stocks rise by 8.4% and 5.2%, respectively, following their better-than-anticipated earnings reports. Generally, stock prices align closely with corporate profit trends over the long term, and there are heightened expectations for this latest earnings season since the U.S. stock market remains close to its historical highs.

However, these expectations are placing significant pressure on stocks related to semiconductors and companies that have greatly benefited from the recent artificial intelligence boom. For instance, Micron Technology’s stock has experienced tremendous growth, more than tripling this year, with its revenue during the quarter ending May 28 increasing over fourfold compared to the previous year.

Concerns are emerging about the sustainability of such rapid growth. Major investors in computer memory may begin to pull back if AI does not yield the anticipated profitability or efficiency. The introduction of lower-cost AI options from China could also decrease demand for memory and computing resources.

Micron's stock fell 8.9%, becoming the largest drag on the S&P 500. Other notable decliners included Advanced Micro Devices, which dropped 7%, and Applied Materials, down 8.2%. The declines in AI-related chip stocks were even more pronounced in global markets earlier in the day.

South Korea’s Kospi index saw a drop of 10.8%, driven down by substantial decreases in SK Hynix and Samsung Electronics; trading was temporarily suspended in Seoul due to the severe market downturn. Analyst Jing Jie Yu from Morningstar noted that the market seemed rattled by advancements in China's chip manufacturing capabilities, raising fears about the competitive position of global chipmakers. However, he believes the sell-off was an exaggerated reaction and that established leaders in the field are unlikely to face significant threats.

This week, several major investors in AI chips and data centers are slated to release their quarterly earnings reports, which are anticipated to provide insights into their future investment strategies. Meta Platforms and Microsoft are set to report on Wednesday, followed by Amazon on Thursday.

Due to the enormity of AI stocks' growth, their fluctuations significantly impact the S&P 500 and other indices. However, Wall Street might remain resilient if other, less prominent sectors continue to perform well—an adjustment that some strategists suggest could be beneficial for the overall market.

In the oil sector, Brent crude for October delivery dropped 5.2% to $81.38. The price had been on a decline since hitting a brief high of $102 per barrel last week. Factors contributing to fluctuating prices include concerns that escalating conflicts in the Middle East could disrupt global oil supply, tempered by hopes for potential negotiations between the U.S. and Iran that might facilitate oil tanker operations through the Strait of Hormuz.

Falling oil prices also resulted in easing Treasury yields in the bond market, with the yield on the 10-year Treasury decreasing to 4.59% from 4.65%. A disappointing consumer confidence report from the Conference Board revealed fewer individuals feeling optimistic about current business conditions, further impacting yields.

The decline in oil prices led traders to reduce predictions of a potential interest rate hike by the Federal Reserve in its upcoming meeting, decreasing the projected likelihood to 28.3% from over 36% the previous day, based on CME Group data. While increased rates might help curb inflation, they could simultaneously hinder economic growth by raising borrowing costs for households and businesses. Long-term mortgage rates have already reached their highest level in nearly a year, further cooling the housing sector.

Wall Street shifts focus from AI stocks to other sectors, as oil prices continue to decline.

A sunlit Wall Street trading floor with morning light streaming through tall windows. In the foreground, a trader’s hand lifts a glowing cube etched with a stylized AI circuit and places it onto a growing pile of mixed-sector tokens. To one side, a stack of oil barrels marked by a downward red arrow leans slightly, showing easing prices. In the background, the bronze Wall Street bull statue stands watch, under warm, natural light.

Wall Street’s flip from AI stocks to elsewhere accelerates, while oil prices keep easing - Anchorage Daily News

- The S&P 500 rose 0.3%, while the Dow gained 1.2% amid profit growth.  
- Chipmaker stocks, like Micron and AMD, faced sharp declines due to sustainability concerns.  
- Oil prices fell 5.2%, easing Treasury yields and reducing interest rate hike expectations.  

Specialist Philip Finale works on the floor of the New York Stock Exchange, Friday, June 26, 2026. (AP Photo/Richard Drew)

NEW YORK — Most of Wall Street is rising Tuesday, even as stocks of computer chipmakers continue to tumble worldwide. Oil prices, meanwhile, are easing further from the two-month high they hit last week.

The S&P 500 rose 0.3% in afternoon trading, but the modest move masked big swings underneath the surface. The Dow Jones Industrial Average was up 643 points, or 1.2%, as of 12:30 p.m. Eastern time. The Nasdaq composite, which is full of AI stocks, was down 0.2% after briefly dropping 9.3% below its record set last month.

The majority of the U.S. market rose after more companies delivered stronger profits for the spring than analysts expected. Coca-Cola climbed 5.1% after its revenue rose 7% despite what CEO Henrique Braun called “a dynamic consumer landscape.”

Sherwin-Williams rallied 8.4%, and Illinois Tool Works rose 5.2% after both likewise reported stronger earnings for the latest quarter than analysts expected. Stock prices generally follow the trend of corporate profits over the long term, and expectations are high for this most recent round with the U.S. stock market still near its all-time high.

Such expectations are weighing particularly heavily on stocks of chipmakers and other companies that have been huge winners from the boom in artificial-intelligence technology.

Micron Technology’s stock has more than tripled this year following gangbuster growth, for example. During the quarter through May 28, its revenue more than quadrupled from a year earlier.

But worries are rising about whether such growth is sustainable. Big spenders on computer memory could pull back on their investments if AI does not produce as much profit or productivity as promised. Lower-cost AI models from China could also mean less demand for memory and computing power than earlier expected.

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Micron dropped 8.9% and was the heaviest weight on the S&P 500. Others also helping to drag the market lower were Advanced Micro Devices, down 7%, and Applied Materials, down 8.2%.

The losses for AI chip stocks were even sharper earlier in the day in other markets worldwide.

Sharp drops for SK Hynix and Samsung Electronics dragged South Korea’s Kospi index down 10.8%. The market’s losses were so big that trading was temporarily halted at times in Seoul.

“We believe the market was likely spooked by the progress of China’s chipmaking equipment capabilities, and was worried that this progress would threaten the competitive position of global chipmaking and chip equipment leaders,” said equity analyst Jing Jie Yu of Morningstar.

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“That said, we believe the sell-off today is largely a knee-jerk reaction and overdone,” he said. The dominant position of global chipmaking leaders is unlikely to be threatened meaningfully, he said.

Several huge spenders on AI chips and data centers are scheduled to report their latest quarterly results this week, which could offer updates on how much they’re planning to invest. Meta Platforms and Microsoft are reporting on Wednesday, while Amazon is due on Thursday.

Because AI superstar stocks have grown so big, their movements carry more weight on the S&P 500 and other indexes than many other companies. But Wall Street could hold up despite their swings if other, less-loved areas of the market are able to keep rising. It’s a rotation that some strategists have suggested could be healthy for the overall stock market.

In the oil market, the price for a barrel of Brent crude to be delivered in October fell 5.2% to $81.38.

It’s been falling since late last week, when the price for a barrel to be delivered in September briefly shot as high as $102.

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Pushing up on prices have been worries that worsening fighting in the Middle East could slow the global flow of oil. On the other side, though, are hopes that the United States and Iran could still negotiate something to allow oil tankers to use the Strait of Hormuz to move crude.

Lower oil prices helped to ease Treasury yields in the bond market. The yield on the 10-year Treasury fell to 4.59% from 4.65% late Monday.

A weaker-than-expected reading on confidence among U.S. consumers also weighed on yields. Fewer consumers are saying they feel good about current business conditions, according to the latest survey released by the Conference Board Tuesday.

The drop in oil prices helped push traders to trim their bets that the Federal Reserve could announce a hike to interest rates following its latest meeting on Wednesday. They’re forecasting a 28.3% probability, down from more than 36% a day before, according to data from CME Group.

Higher rates could keep a lid on inflation, but they would also slow the economy by making it more expensive for U.S. households and businesses to borrow. Long-term mortgage rates have already hit their highest level in nearly a year, chilling the housing industry.

___

AP Business Writers Chan Ho-him, Elaine Kurtenbach and Matt Ott contributed.

Wall Street’s flip from AI stocks to elsewhere accelerates, while oil prices keep easing

Visa, the operator of the largest payment network globally, is set to reduce its workforce by approximately 7% as part of CEO Ryan McInerney's initiative to streamline operations and enhance investments in key growth sectors. This decision was outlined in a memo that CNBC has confirmed.

The reduction will affect around 2,600 employees, primarily within the technology and product operations divisions. CNBC verified this information through an insider familiar with the situation, following Bloomberg's earlier report.

Employees affected by the layoffs will be notified starting Tuesday, as the company outlines next steps and offers transition support.

“To seize upcoming opportunities and position Visa effectively in this ongoing transformation, it's crucial that we continue evolving our work processes,” McInerney mentioned in the memo. He highlighted that the integration of artificial intelligence is expediting this transformation and reshaping operational methods at Visa.

These layoffs reflect a broader trend in the finance and tech industries, as organizations increasingly leverage AI to automate technical tasks such as software development, all while working to control costs after a period of aggressive hiring. At the end of its previous fiscal year, Visa employed about 34,100 individuals.

While AI significantly influences these workforce reductions, it is not the only factor, according to the knowledgeable insider who spoke on the condition of anonymity.

Visa aims to redirect its investments towards what it identifies as growth opportunities, which include targeting affluent customers, enhancing cross-border transactions, expanding business payment options, exploring stablecoins, and increasing its geographical footprint.

McInerney emphasized that the strategic choices made in recent years have propelled the company into a new era of commerce, characterized by substantial momentum in both financial performance and client satisfaction.

Visa plans to disclose its quarterly earnings report after the market closes on Tuesday.

Visa to reduce workforce by 7% as part of efficiency efforts amid AI transformation.

Dark, moody corporate office at dusk with rows of empty cubicles fading into shadows. Overhead mechanical arms hover above a 7% marker as silhouetted figures dissolve into thin air. A large Visa logo dominates the far wall in muted gold. Natural, low‐key lighting casts dramatic shadows on the scene.

Visa is cutting 7% of employees in efficiency push as AI reshapes work - CNBC

- Visa plans to cut about 2,600 positions, impacting 7% of its workforce.  
- Layoffs focus primarily on technology and product operations amid rising AI use.  
- CEO emphasizes investment in growth areas like affluent customers and geographic expansion.  

Visa , which runs the world's largest payments network, plans to cut about 7% of its workforce as CEO Ryan McInerney moves to streamline the company and invest more in growth areas, according to a memo confirmed by CNBC.

The company plans to eliminate roughly 2,600 positions, mostly in its technology and product operations, according to the memo. CNBC confirmed the contents of the memo, which was reported earlier by Bloomberg, with a person with direct knowledge of the matter.

Impacted employees will start to be contacted on Tuesday for next steps and transition assistance, said the person.

"To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work," McInerney wrote. "AI is also helping to accelerate this evolution and shape the way work gets done at Visa."

The layoffs come as companies across the financial and technology sectors increasingly use artificial intelligence to automate technical work like software development, while seeking to rein in costs after years of rapid hiring. Visa had about 34,100 employees at the end of its last fiscal year.

While AI played a significant role in the layoffs, it wasn't the sole driver, according to the person with direct knowledge of the matter, who declined to be identified speaking about the changes.

Visa wants to invest more in what it views as growth areas, including its emphasis on affluent customers, cross border activity, business payments, stablecoins and geographic expansion, said the person.

"As a result of the choices we have made over the past few years, we are entering a new era in commerce with a business that has real momentum," McInerney wrote, citing good financial results and client satisfaction.

Visa is scheduled to report quarterly earnings after the market closes Tuesday.

Visa is cutting 7% of employees in efficiency push as AI reshapes work

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AI won't REPLACE your job: Firms CONTINUE to employ people

A bright, sunlit corporate lobby filled with natural light: a diverse group of adult professionals shaking hands with human recruiters beneath a bold “Now Hiring” banner, while a friendly AI service robot waits courteously to hand out brochures—symbolizing AI as a helper, not a replacement.

AI won't STEAL your job: Companies STILL hiring humans - Fox News

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- The new feature encourages audience interaction and community involvement on the platform.  
- This enhancement aims to enrich user experience and foster online discussions.  

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AI won't STEAL your job: Companies STILL hiring humans

The sell-off in artificial intelligence stocks has escalated, causing South Korea's stock market to plunge to its lowest level in three months. 

On Tuesday, investors continued to abandon shares in semiconductor companies due to escalating concerns regarding the significant debt levels that AI firms have incurred to finance their datacentre expansions. Major South Korean players like SK Hynix and Samsung Electronics saw their stock values drop by over 10%, leading to an 11.5% decline in the Kospi index, marking its lowest point since mid-April.

As Wall Street opened on the same day, American semiconductor stocks continued their downward trend, with companies including Intel, Advanced Micro Devices, Sandisk, Western Digital Corp, and Seagate Technology all recording drops of more than 4%. 

Analysts have pointed to fresh fears surrounding AI investment expenditures and growing competition from cost-effective Chinese manufacturers. This follows a report by The Information indicating that China has initiated mass production of domestically developed deep ultraviolet (DUV) chip fabrication equipment. Jing Jie Yu, an equity analyst at Morningstar, remarked that the market reaction appears to be driven by anxiety over China's advancements in chip manufacturing, suggesting that this could jeopardize the competitive edge of established leaders in the global chip sector. He characterized the sell-off as largely a reflexive response that could be excessive. 

Additionally, shares of Chinese memory chip manufacturer CXMT surged by 466% upon its debut on the Shanghai stock exchange, highlighting China's ambitious efforts to establish an independent AI supply chain. 

Furthermore, there is growing apprehension regarding the “circular funding” that characterizes the AI industry, in which AI companies finance each other’s operations. Recently, the Wall Street Journal revealed that Nvidia is in talks with OpenAI to support a $250 billion datacentre initiative in Ohio. Given Nvidia’s strong investment-grade credit rating, its backing could make financing for the project more feasible.

News of these negotiations negatively impacted Nvidia's stock, which fell by 5% by the end of the trading session, dipping below the $200-per-share threshold. Additionally, the cost of insuring Nvidia's debt against default via credit default swaps (CDS) rose sharply. Ipek Ozkardeskaya, a senior analyst at Swissquote, noted the immediate market response to the Nvidia developments, cautioning that it may not be the optimal time to capitalize on any stock dips.

Investors abandon chip stocks as AI sell-off escalates

A shadowy trading floor at dusk, dominated by a giant LED ticker board flashing red downward arrows next to stylized microchip icons; suited investors in silhouette clutch their phones and reel back in shock as physical silicon chips tumble off a sleek table, red numbers cascading across nearby screens.

AI sell-off intensifies as investors ditch chip stocks - The Guardian

- South Korea's stock market fell to a three-month low due to AI stock sell-off.  
- SK Hynix and Samsung Electronics experienced over 10% declines, impacting the Kospi index.  
- Concerns arise over circular funding and competition from China's advancing chip-making capabilities.  

The sell-off in AI stocks has intensified, driving South Korea’s stock market down to its lowest level in three months.

Investors continued to ditch chip stocks on Tuesday, amid rising concerns about the huge amount of borrowing among AI companies to fund their datacentre expansion plans.

The South Korean semiconductor companies SK Hynix and Samsung Electronics fell by more than 10%, dragging the country’s Kospi share index down by 11.5% to its lowest point since mid-April.

US chip stocks extended their recent losses when Wall Street opened on Tuesday, with Intel, Advanced Micro Devices, Sandisk, Western Digital Corp and Seagate Technology all down by more than 4%.

Analysts attributed the sell-off to renewed worries over AI investment spending, and competition from cheaper Chinese companies, after a report by the Information that China has begun mass production of homegrown deep ultraviolet (DUV) chip-making tools.

“We believe the market was likely spooked by the progress of China’s chip-making equipment capabilities, and was worried that this progress would threaten the competitive position of global chip making and chip equipment leaders,” said Jing Jie Yu, an equity analyst at Morningstar, adding that the sell-off was “largely a kneejerk reaction and overdone”.

On Monday, shares in the Chinese memory chip maker CXMT rose by 466% when it floated on the Shanghai stock exchange, underlining China’s drive to create its own AI supply chain.

Investors may also be growing jittery about the “circular funding” at the heart of the AI industry, through which artificial intelligence firms finance one another.

On Monday, the Wall Street Journal reported that Nvidia was in discussions with OpenAI about providing $250bn (£188bn) for a massive datacentre project in Ohio. Backing from Nvidia, which has an investment grade credit rating, could make it less expensive to raise funding for the project.

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News of the talks knocked Nvidia’s shares on Monday; they closed 5% lower, while the cost of insuring the chip company’s debt against default using a credit default swap (CDS) rose.

“The market reaction to the Nvidia news was swift. Nvidia fell 5% and closed the session below the $200-per-share mark. More importantly, Nvidia’s five-year CDS spiked, suggesting that it may not yet be the right time to buy the dip,” said Ipek Ozkardeskaya, a senior analyst at Swissquote.

AI sell-off intensifies as investors ditch chip stocks

Activists in India are challenging the Modi administration regarding the application of AI-driven surveillance tactics during a protest by the Cockroach Janta Party (CJP). 

This issue gained traction when images emerged showing a police vehicle equipped with a telescopic camera system that provided a comprehensive view of the protest area. 

Student activist Aishe Ghosh has petitioned the Delhi High Court to rule that the mass surveillance targeting demonstrators is unconstitutional. She is also calling for the court to mandate the destruction of any personal data obtained from the CJP protest.

Critics point out that India lacks any legal framework governing police use of facial recognition technology, arguing that the extensive surveillance at the key protest site in New Delhi constitutes a violation of established laws.

During court proceedings, Solicitor General Tushar Mehta defended the police's actions, claiming that concerns about privacy at a public event are somewhat contradictory. He emphasized that the measures taken were "absolutely necessary" and served a "legitimate state interest."

India news: Activists condemn AI monitoring at CJP demonstrations

A moonlit urban plaza shrouded in shadow, silhouetted Indian activists clustered beneath looming black surveillance drones and CCTV cameras with menacing red scanning lights. They grip handmade placards reading “No AI Surveillance,” while a single Indian flag flutters above them in the gloom, red beams slicing through drifting smoke.

India news: Activists decry AI surveillance at CJP protests - DW.com

- Activists challenge Modi's government over AI-powered surveillance at CJP protest in India.  
- Aishe Ghosh demands Delhi High Court declare mass surveillance unconstitutional and destroy data.  
- Solicitor General defends police actions, stating they serve legitimate state interests and security.

Skip next section Modi government faces challenge from activists over AI use at CJP protest

07/28/2026 July 28, 2026 Modi government faces challenge from activists over AI use at CJP protest

Activists in India have challenged Narendra Modi's government over the use of AI-powered surveillance during the Cockroach Janta Party (CJP) protest.

The controversy erupted when protesters and media reports showed a police surveillance van equipped with cameras on a telescopic mast providing a 360-degree view of the gathering.

Student activist Aishe Ghosh has asked the Delhi High Court to declare mass surveillance of protesters ​unconstitutional.

She also wants the court to order the destruction of all personal data collected during the CJP demonstration.

India has no law governing the use of facial recognition technology by police and surveillance ​at the main protest site in New Delhi was a breach of the law, activists say.

During the case's hearing, Solicitor General Tushar Mehta defended the Indian police conduct, saying privacy claims at a public gathering were "ironical" and the checks were "absolutely necessary" and "in legitimate state interest."

India news: Activists decry AI surveillance at CJP protests

On Tuesday, technology shares experienced a significant decline, primarily due to apprehensions regarding the substantial costs associated with developing artificial intelligence systems. Additionally, concerns grew over increased competition from China in the memory chip sector, which has long been dominated by South Korea and its industry counterparts.

The South Korean Kospi index experienced a dramatic drop of over 10 percent, resulting in a temporary trading suspension at one stage. Meanwhile, both Japan and Taiwan's benchmark indexes fell by around 4 percent, while Chinese stocks declined by more than 2 percent.

Futures for the Nasdaq, heavily populated by tech firms, fell by approximately 1 percent. In premarket trading, American chip manufacturer Micron saw its shares decrease by 6 percent, while Nvidia, a leading chip manufacturer, also faced a downturn. SpaceX, the aerospace and AI venture led by Elon Musk, also saw a decline. In Europe, German chip producer Infineon fell by 4 percent, and Dutch semiconductor equipment manufacturer ASML dropped by 3 percent.

The recent turmoil in the AI market took off on Monday, sparked by the trading debut of ChangXin Memory Technologies, China's top memory chipmaker, which launched with an extraordinary initial public offering. The company's shares surged almost 500 percent on their first day, quickly making it the most valuable entity on the Shanghai stock exchange, although it retraced by 4 percent on Tuesday.

Tech Stocks Plunge Amid Concerns Over A.I. Investment and China's Chip Rivalry

In a dimly lit stock exchange trading floor, glowing red downward arrows and tumbling stock prices flash across a long digital ticker board. In the foreground, a large, fractured AI microchip slips off a pedestal as loose circuit fragments scatter. Behind it, a single Chinese flag ripples against a shadowy skyline of tech skyscrapers, all under a stormy, muted sky.

Tech Stocks Tumble on Worries About A.I. Spending and China’s Chip Competition - The New York Times

- Technology stocks fell due to concerns over A.I. costs and competition from China.  
- South Korea's Kospi index dropped over 10%, causing a temporary trading halt.  
- China's ChangXin Memory Technologies surged nearly 500% on IPO, highlighting fierce competition.  

Technology stocks tumbled on Tuesday, dragged down by fears of the hefty bills for the build-out of artificial intelligence systems and concerns over intensifying competition from China in memory chips — a critical component of A.I. long dominated by South Korea and its peers.

South Korea’s benchmark Kospi index plunged more than 10 percent on Tuesday, at one point triggering a temporary trading halt. Benchmark indexes in Japan and Taiwan both fell around 4 percent. Stocks in China fell over 2 percent.

Futures for the tech-heavy Nasdaq fell about 1 percent. The American chip company Micron was down 6 percent in premarket trading. Nvidia, the leading chip maker, was also lower, as was SpaceX, Elon Musk’s rocket and A.I. company. In Europe, the German chipmaker Infineon fell 4 percent and the Dutch semiconductor equipment maker ASML shed 3 percent.

The latest A.I.-related market tremor began on Monday, when the shares of China’s leading memory chipmaker, ChangXin Memory Technologies, began trading after a blockbuster initial public offering. The company’s stock soared nearly 500 percent on its market debut, quickly making it the most valuable company on the Shanghai exchange. It slipped 4 percent on Tuesday.

Tech Stocks Tumble on Worries About A.I. Spending and China’s Chip Competition

On July 28, 2026, at 4:20 a.m. ET, a Wyckoff resident has been remanded to custody in connection with what is being recognized as Bergen County's first case of deepfake and AI-generated child pornography. Brian Saracusa, aged 50, faced Judge Marc Ramundo during his detention hearing in Hackensack on July 24.

Saracusa is alleged to have not only produced artificial intelligence-generated child pornography but also shared it online. Additionally, he stands accused of surreptitiously photographing and videotaping an adult in various states of undress without their consent on multiple occasions. The charges against him include second-degree distribution of child pornography, third-degree possession of child pornography, third-degree creation of deceptive visual media, and third-degree invasion of privacy.

Bergen man charged in AI child pornography case to be held in custody | Exclusive

Dark prison cell corridor lit by a single red-tinted bulb, a shadowy man in handcuffs stands behind rusted bars, his face hidden; a small Norwegian flag hangs tattered on the grimy wall, and a dusty laptop on a side table displays a heavily blurred file icon, hinting at illicit AI-generated content.

Bergen man accused in AI child porn case will be detained | Exclusive - Bergen Record

- Brian Saracusa, 50, faces charges for creating and distributing AI-generated child pornography.  
- He is also accused of secretly filming an adult in compromising situations.  
- Saracusa will remain in jail following his July 24 detention hearing.  

July 28, 2026, 4:20 a.m. ET

The Wyckoff man charged with creating deepfake, artificial intelligence-generated child pornography, Bergen County's first case on the issue, will remain in jail.

Brian Saracusa, 50, appeared before state Superior Court Judge Marc Ramundo in Hackensack on July 24 for his detention hearing. Saracusa is accused of creating AI child porn on the internet and distributing it, as well as photographing and videotaping an adult in "various states of undress" several times without their knowledge. He is charged with second-degree distribution of child pornography, third-degree possession of child pornography, third-degree creation of deceptive visual media and third-degree invasion of privacy.

Bergen man accused in AI child porn case will be detained | Exclusive

New York's largest teaching union is calling on state leaders to implement comprehensive regulations concerning artificial intelligence in educational settings, particularly regarding humanoid robots meant to simulate human interactions.

On Monday, the New York State United Teachers (NYSUT) reached out to the State Education Department, advocating for enhanced oversight of new AI technologies in schools. This appeal follows a recent move by a school district in Western New York to halt the introduction of Sally, an AI-driven humanoid robot, planned for deployment this fall.

In their correspondence, the union expressed gratitude to state officials for intervening in the Sally situation but noted that this incident highlighted a significant void in statewide regulations surrounding such technologies.

“This robot was halted due to media coverage, concerned parents and educators, and a letter from the Commissioner — not due to any state law or regulation, as none exists,” stated NYSUT President Melinda Person.

Person emphasized the need for state leaders to address critical inquiries regarding the integration of lifelike AI technology in classrooms before any similar devices are brought into the learning environment.

“Prior to the unveiling of any future lifelike robots in New York classrooms, all questions outlined in this letter must be answered completely, transparently, and in writing,” she asserted.

The State Education Department affirmed its endorsement of technology as a beneficial resource for both teachers and students, while maintaining that it should never replace human insight.

In a statement, a department representative mentioned that officials are currently working on statewide guidance aimed at encouraging responsible usage of digital resources, artificial intelligence, and emerging technologies within educational institutions.

The spokesperson further noted that any amendments to state legislation regarding technology implementation in classrooms would require legislative action.

NYSUT advocates for uniform regulations on AI and humanoid robots in educational institutions across the state.

An empty, modern classroom bathed in soft natural light, its row of lifelike humanoid robots seated at desks and wrapped in yellow caution tape like makeshift guardrails. A lone adult figure—a teacher or union representative—stands by the doorway holding a clipboard, gazing at the scene. On the wall behind them, a bold NYSUT flag hangs as a silent witness to the call for new statewide safeguards.

NYSUT calls for statewide guardrails on AI, humanoid robots in schools - 13wham.com

- New York's largest teachers union calls for clear AI safeguards in education.  
- Concerns arose after a school district's plan to introduce an AI robot was canceled.  
- The State Education Department is developing guidance for responsible technology use in schools.  

New York’s largest teachers union is urging state officials to establish broad safeguards governing artificial intelligence in schools, particularly the use of humanoid robots designed to mimic human relationships.

The New York State United Teachers union sent a letter Monday to the State Education Department calling for stronger oversight of emerging AI technologies in classrooms. The request follows a recent decision by a Western New York school district to abandon plans to introduce Sally, an AI-powered humanoid robot, into schools this fall.

In its letter, the union thanked state officials for intervening in the Sally proposal but said the episode exposed a lack of statewide policies governing such technology.

“What stopped this robot was a news story, alarmed parents and educators, and a Commissioner’s letter — not any law or policy of this state, because none exists,” NYSUT President Melinda Person said.

Person said state leaders should answer key questions about the use of lifelike AI technology before similar devices are introduced into classrooms.

“Before the next lifelike robot is unboxed in a New York classroom, every question in this letter must be answered fully, publicly, and in writing,” she said.

The State Education Department said it supports the use of technology as a tool for educators and students, but does not view it as a replacement for human judgment.

In a statement, a department spokesperson said officials are developing statewide guidance to promote the responsible use of digital tools, artificial intelligence, and other emerging technologies in schools.

The spokesperson added that any changes to state laws governing technology use in classrooms would require action by lawmakers.

Bessent Announces U.S. and China Will Begin Talks on A.I. Safety

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