Skip to content
You can now search across every topic, entity and event.What's new
AI: Jobs, Power & Money
24AUG

Samsung and SoftBank bank the demand

2 min read
16:17UTC

Samsung's chip division posted KRW89.2 trillion of operating profit on AI server and memory demand, while SoftBank Corp. lifted enterprise revenue 11% on cloud and AI work.

EconomicDeveloping
Key takeaway

Chip and telecoms suppliers are booking the AI demand, and one of them named the headcount.

Samsung Electronics reported on 30 July that its Device Solutions division, the arm that makes memory and logic chips, produced KRW127.5 trillion of revenue and KRW89.2 trillion of operating profit, carried by demand for AI server components and high-bandwidth memory. 1 SoftBank Corp., the Japanese telecoms operator, said on 4 August that Cloud and AI revenue rose 31% year on year, lifting enterprise revenue 11% to JPY260.4 billion, with a 1,000-person team deploying a new managed patching service. 2

SoftBank's thousand-person team is a rare disclosure of the labour behind an AI revenue line. Most disclosures in this cycle describe AI revenue without saying how many people produce it, and a managed service staffed by a thousand engineers is a straightforward statement that this particular AI product needs labour to run. Patching, the routine work of applying security updates across a customer's estate, is exactly the sort of task automation was supposed to erase.

Samsung's numbers point the other way on employment. A memory fab is among the most capital-intensive facilities in manufacturing, and its output scales with wafer capacity rather than with staffing. Korea's chip industry can therefore book record divisional profit in the same quarter its central bank reports young workers disappearing from information services and publishing, because the profit and the jobs sit in different parts of the same economy.

Samsung and SoftBank both sit downstream of the money. Demand for AI infrastructure is being converted into earnings by the firms that supply components and operate systems, several rungs below the model developers who receive the coverage. Amazon cut jobs inside its own AGI research unit last month while its infrastructure spending climbed , which is the same pattern that puts the employment gains attached to AI in hardware, telecoms and construction rather than in software.

Deep Analysis

In plain English

Samsung Electronics makes memory chips and other hardware; SoftBank Corp provides enterprise technology services in Japan. Both reported revenue growth this quarter that they attributed to AI: Samsung from selling memory chips for AI data centres, SoftBank from AI-related services sold to businesses. It shows the AI boom is generating real revenue for suppliers even in quarters where the companies buying their products are cutting their own staff.

What could happen next?
  • Opportunity

    AI infrastructure suppliers, chipmakers and cloud-service providers, are capturing revenue growth even where their hyperscaler customers show headcount or cash-flow strain.

First Reported In

Update #19 · Four methods, one answer on AI and jobs

Samsung Electronics· 24 Aug 2026
Read original
Different Perspectives
Office for National Statistics
Office for National Statistics
Deferred its Transformed Labour Force Survey beyond November 2027 and disclosed a May 2026 telephone-collection failure. The ONS carries no AI-attribution layer at all, so Britain sits outside this month's cohort of measuring states by its own admission.
Uber India, Swiggy, Zomato and Urban Company
Uber India, Swiggy, Zomato and Urban Company
Named as respondents after the Karnataka High Court extended the interim welfare-fee deposit arrangement under the state's gig-worker welfare law to Uber India on 28 July, joining the other platforms already under the same order. The companies are contesting the underlying law while complying with the interim deposit terms.
Kenya State Department for ICT and the Digital Economy
Kenya State Department for ICT and the Digital Economy
Its draft AI policy, open for consultation to 4 August, proposes a pay floor for data-annotation work, where Kenyan annotators earn $1.46 to $3.74 an hour against $21 to $27 in the US, on figures relayed by the trade outlet WeeTracker. Kenya is legislating on AI labour even though the World Bank rates it among the least exposed economies.
ARAN and Italian public-sector unions
ARAN and Italian public-sector unions
Signed the CCNL Funzioni Centrali 2025-2027 on 6 August, the first Italian national contract with a dedicated AI Title, barring fully automated employment decisions without meaningful human intervention and requiring advance union notice of AI deployment. The unions secured this through bargaining rather than waiting for legislation.
US employers reporting to Challenger, Gray & Christmas
US employers reporting to Challenger, Gray & Christmas
Named artificial intelligence as the leading stated cause of job cuts for a fifth consecutive month in July, at 33% of that month's total, even as the overall cut count fell 27%. Employers kept citing AI as the reason even as scrutiny of the attribution rose.
Bank for International Settlements
Bank for International Settlements
Bulletin 130 reports a 0.75 percentage point average unemployment rise across high-AIPI countries between 2023 and 2025, while its own footnote 2 states the index is strongly correlated with employment shares in AI-exposed sectors it is used to predict. The bulletin calls the productivity payoff uncertain and uneven.