In Other News: McDonald's Bet On China, Spy Dolphins, And AI Layoffs Vs. Stocks

Why It Matters

AI‑linked workforce reductions are reshaping investor sentiment; firms that monetize AI will outperform, while those relying on AI‑driven cost cuts risk valuation penalties.

Key Takeaways

• AI-driven layoffs often depress stock performance, with half falling
• Investors favor firms showing AI revenue growth over cost‑cutting claims
• Twilio and Datadog illustrate AI‑native solutions boosting earnings
• China remains McDonald’s growth engine, emphasizing value‑priced menu
• Military dolphin programs persist, but ethical concerns limit expansion

Summary

The video examines the mixed impact of artificial‑intelligence initiatives on corporate performance, highlighting a wave of AI‑linked layoffs and contrasting it with success stories from Twilio, Datadog, and McDonald’s expansion in China. It also touches on the controversial use of dolphins in military operations.

Data points reveal that more than 112,000 U.S. jobs have been lost to AI since early 2025, with MIT estimating AI could replace 11.7% of the labor market and save $1.2 trillion in wages. Over half of the roughly two dozen publicly listed firms that announced AI‑driven cuts have seen their shares fall, averaging a 28% decline, versus only 27% of the S&P 500 since ChatGPT’s launch. By contrast, Twilio’s stock surged 45% and Datadog’s rose 60% after reporting AI‑native product wins and revenue growth.

Experts quoted in the segment describe AI as a “macro shock” creating uncertainty, noting a zero‑sum view of productivity gains: “If everybody’s improving, the baseline shifts and no one is more profitable.” Twilio’s CEO promised that AI‑enhanced agents will improve customer experiences and drive upsells, while Google’s Gemini and Palantir are cited as examples of firms turning AI into revenue streams rather than mere cost‑cutters.

The takeaway for investors is clear: AI‑related layoffs alone do not guarantee value creation. Companies that can demonstrate tangible AI‑driven revenue, such as Twilio and Datadog, are likely to attract capital, whereas firms using AI as a veneer for cost reductions may face continued market skepticism. Meanwhile, McDonald’s growth in China underscores the enduring power of value‑oriented branding, and the dolphin program raises ethical questions about military animal use.

Original Description

CNBC In Other News brings you stories that missed the spotlight.

AI-driven layoffs have become a defining theme across the tech industry over the past year, with some sources estimating more than 112,000 U.S. jobs being lost to AI since the start of 2025. While major companies like HP and Amazon have often framed these cuts as a way to boost efficiency and shift focus toward new technologies, investors themselves don't appear convinced that these layoffs will improve companies' bottom lines in the long run.

Software companies like Twilio and Datadog are starting to prove their case as winners in artificial intelligence. Investors say the performance from Datadog and Twilio underscores how companies that can deploy AI-native solutions while also articulating their path to monetization can ease disruption fears, for now. CNBC's Seema Moody explains.

Since 1959, the U.S. Navy’s Marine Mammal Program has trained bottlenose dolphins and California sea lions to detect mines and other underwater threats. Reporter Sophie Caldwell spoke with Scott Savitz, senior engineer at global policy think tank Rand Corporation and an expert on mine countermeasures, to understand the history, challenges and possibilities of marine mammals in the military.

While many foreign consumer brands in China, including Starbucks, Nike, and LVMH, face slowing growth and tougher competition, McDonald’s is expanding aggressively. The company plans to open 1,000 new stores a year and reach 10,000 locations in China by 2028. About half of McDonald’s new stores last year opened in China. The company also recently bought back a stake from Carlyle Group after previously selling control of its China business to Carlyle and a Chinese state-owned firm. CNBC’s Eunice Yoon looks at why McDonald’s continues to bet big on China.

Chapters:

0:00 Why AI layoffs aren't helping stocks

3:44 How Twilio and Datadog are winning back investor confidence

6:29 Pete Hegseth says Iran doesn’t have ‘kamikaze dolphins’

8:18 Why McDonald's is supersizing in China

Reporters: Liz Napolitano, Seema Mody, Sophie Caldwell, Eunice Yoon

Produced by: Juhohn Lee, Meline Rosales

Edited by: Andrea Miller, Erin Black, Christian Nunley

Camera by: Tasia Jensen

Animation: Emily Park, Christina Locopo

Additional Production: Charlotte Morabito

Manager Video Distribution: Divya J. Verma

Senior Directors of Video: Jeniece Pettitt, Jessica Leibowitz, Lindsey Jacobson

Additional Footage: Getty Images

Additional Sources: Scott Savitz

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In Other News: McDonald's Bet On China, Spy Dolphins, And AI Layoffs Vs. Stocks