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Good evening. The past week has seen a bunch of mixed-to-positive earnings reports from tech’s major players, but some cracks are starting to show.

Chipmaker stocks are weighing down Wall Street, Bitcoin’s crashing and the Super Bowl is becoming a matchup between Anthropic and OpenAI. Maybe space data centers and friendly robots will fix it?

We’ll get into all of that below, but first, my colleague Sabri Ben-Achour parses private data to figure out what might be going on with the job market.

— Tony Wagner, newsletter editor

Jobseekers stand in a line.
Roberto Schmidt/AFP via Getty Images
The job market seems so-so, but it's hard to be sure without government data
For now, we can just glimpse private data, consumer surveys and unemployment data.

Another month, another missed federal data report. That brief partial government shutdown — which is now over — will delay the jobs report usually put out by the Bureau of Labor Statistics on the first Friday of every month.

But there are glimpses into the job market's health from other sources. According to payroll processor ADP, this economy added just 22,000 jobs in January.

Clarence Klugh is 43 years old, his own boss, and has worked in public relations in New York for a long time. He’s thinking it is time to branch out.

“I see the writing on the wall for the industry in itself,” Klugh said.

Businesses are still figuring out artificial intelligence and budgets are on hold. So Klugh is looking for all kinds of positions.

“The world around us is changing rapidly. We should be open to evolving as well,” he said, though that’s easier said than done. “How do I feel about the market right now? Honestly, I think it’s a bit terrifying,” he added.

Klugh is not alone in feeling that way, consumer sentiment is still depressed. The job market looks to be at least stable for now.

“There’s still jobs being added, but it’s at a much slower rate,” said Macrina Wilkins, director of market insights at Associated General Contractors of America. 

It’s hard to tell for sure right now because official government data won’t come out until Wednesday, Feb. 11. So economists are looking at other things, like what payroll processors are reporting.

“In January, we saw 37,000 jobs added by small businesses. That’s right around the monthly average for the past year,” said Andrew Chamberlain. He’s chief economist at Gusto, an HR platform serving half a million businesses. 

“We don’t see any evidence of any bottom falling out of the small business hiring market,” he said.

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News you should know

Let’s do the numbers

  • For the second day in a row, tech stocks weighed down major indexes that largely performed well. The S&P 500 closed 0.5% lower today, the Dow added 0.5% and the Nasdaq fell 1.5%.

  • Bitcoin is trading below $75,000 at this writing, down about 40% from its peak last fall and as low as it's been since President Donald Trump won reelection in part by appealing to the crypto industry.

Government

  • SNAP benefits are changing, fast. Now more recipients, including folks nearing retirement age and homeless people, will need to prove they meet work requirements to get food aid.

  • Thousands of sets of government data have been altered, hidden or vanished entirely under the second Trump administration. Experts say losing access to these numbers have wide-ranging impacts all around the country.

  • Congressional stock trading is a hot topic, but Rest of World found some lawmakers who don’t buy stocks themselves have family members who trade on the industries they govern.

Tech

  • The AI data center boom likely means burning a whole lot more fossil fuel. Some companies are going “behind-the-meter” and building their own natural gas plants.

  • We’ve reported on how AI companies name their chatbots so humans will like them. Now Semafor has an interesting look at the way tech companies are designing humanoid robots to look more friendly. Take a look for yourself.

  • We also told you how this year’s Super Bowl ads aim apolitical, but they’re not without controversy. Anthropic’s spot makes fun of chatbots with ads — like rival OpenAI’s ChatGPT. OpenAI CEO Sam Altman wants you to know he’s Not Mad, and his company’s Super Bowl ad will be more positive.
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QUOTE OF THE DAY
"We will be launching the satellites into what's called a dawn-dusk sun-synchronous orbit, and the great thing about that is basically the sun always shines there."
—  Travis Beals, senior director at Google’s Project Suncatcher

Investors pumped more than $60 billion into data center construction last year, and thousands are planned to power future artificial intelligence. The big knock on these projects, aside from their cost, is the natural resources they take up. Is the solution sending data centers into space? Google is working on it, along with Elon Musk’s recently merged SpaceX and xAI. We talked with Beals about how these satellites could work, and what it costs to build out infrastructure in space.

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Final note
Some more layoff news of note

The Washington Post laid off about a third of its newsroom today, roughly 300 journalists, gutting the paper’s sports and book coverage along with many foreign bureaus. Post leadership suggested the moves were necessary to remain competitive, though as a private company the company has not revealed its exact headcount or financials. 

Jeff Bezos bought the news organization in 2013. Former staff say he’s lived the Post’s “democracy dies in darkness” mission in the past, but the Amazon founder has more recently steered the Post in a direction that happens to appease President Donald Trump and protect Bezos’ other business interests.

The paper has reportedly lost about $100 million a year; Bezos is among the richest men alive, with a net worth exceeding $260 billion.
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