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GitLab announces AI layoffs, stock goes down 9%

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Microsoft’s GitHub code repository is a central dependency for open source software. Corporate development teams love it too.

But GitHub’s been having serious reliability problems lately — 86% uptime over the past 90 days. [Missing GitHub Status]

We don’t have direct smoking gun evidence that GitHub is dying of vibe code poisoning. But it sure feels vibe coded. Sucks if you work for a company trying to use GitHub for real work, hey.

But GitHub has competitors. The largest has long been GitLab, founded in 2011.

So GitLab has seized the day! And they’ve announced they’re going to shoot themselves in the foot too. With AI!

Yesterday, CEO Bill Staples posted “GitLab Act 2”: [GitLab]

The agentic era affords GitLab the largest opportunity in our history as a company, and we’re making the structural and strategic decisions to meet it.

You can translate that, right? He means layoffs. Announcements like this say “AI” to mean layoffs. You always go into your “largest opportunity” with less people, right.

Staples’ AI excuse for the layoffs is full agentic orchestration with all the salad. His full pitch sounds like Gas Town for Enterprise and should be about as efficient and effective:

Software will be built by machines, directed by people. AI is the substrate on which future software gets built. Agents will plan, code, review, deploy, and repair. Humans still own the judgment that matters most: architecture, deep understanding of the customer problem, the tradeoffs that require taste.

Of course, they won’t. The human in the loop rapidly acclimatises to management demands for 10× productivity by turning into a “looks good to me” machine and accepting anything that passes CI. The management get precisely what they asked for. The human fantasises about getting a physical labouring job.

I don’t believe GitLab is going to do any of the agentic guff in this announcement — it’s just C-level fever dreams. They will do the layoffs, though.

GitLab’s stock price was $52 a year ago and closed at $25.64 yesterday — so it dropped by over half in a year. It closed at $23.08 today — a 9% drop in one day. So the market does not love this clear desperation AI layoff either. And we already know that layoffs don’t boost your share price, they send it down.

This was a very weird and dumb announcement from GitLab, especially when this was the perfect moment to advertise “we’re the one that stays up and works” and tune up their migration tools. But they have CEO brain, so let’s try saying “AI”!

So what do we move to instead? Codeberg is run by a nonprofit and a lot of open source projects are going there.

Business users are mostly holding on and hoping GitHub gets it together. There’s also self-hosting a code repository with Forgejo, the open source software that Codeberg maintains and runs on.

But sometimes, services turn to vibe trash, and you have to rebuild from scratch yourself. You’ll get a lot of practice when the AI bubble’s finished popping.

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mkalus
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War and Data Centers Are Driving Up the Cost of Fiber-Optic Cable

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War and Data Centers Are Driving Up the Cost of Fiber-Optic Cable

Fiber-optic cable has become a staple of drone war. From Ukraine to the Sahel, combatants are fielding quadcopters piloted via kilometer-long lengths of cable that allows operators to control them across vast distances while insulating the drone from being knocked from the sky. This technique was once a cheap way for militaries to beat their opponents' electronic warfare, but demand for cable from data centers and war is raising the cost of every flight.

War is a cat and mouse game. One side deploys a devastating tactic and the other side figures out a way to defeat it. When small and cheap quadcopter drones began to dominate the skies, first by Islamic State and then in Russia’s war on Ukraine, fighters quickly learned it was easier to knock them out of the sky with electronic warfare than it was to shoot them down.

Then, in 2023, Russia began to deploy FPV drones controlled via lengths of fiber-optic cable. The cable sits spooled in a tube below the drone that unwinds as it flies. The fiber-optic cable provides a fast and clear connection between a drone and its operator and no signal is flying through the air which makes it immune to jamming.

Ukraine took heavy vehicle losses when Moscow began using fiber-optic drones but Kyiv quickly adopted the tactic and now wheat fields in the country are covered in discarded cable. Three years ago, this was a cheap and effective means of slipping past enemy defenses. In 2026 it’s not nearly as cost effective.

“Fiber-optics is still happening at the battlefield, although not as much as it used to be. It's extremely pricey now. We used to buy 50km spool for $300, now it's easily $2500. Just so you know,” Dimko Zhluktenko, a Ukrainian soldier, said in a post on X on May 10.

The price of fiber-optic cable has been steadily rising since about 2023 and has almost doubled in just the past few months. In January, Shanghai based fiber-optic company Sun Telecom declared there would be a “fiber famine” in 2026. Last year, a kilometer of its G.652D fiber cable cost $2.20. By December of 2025 the same length of cable cost $3. A month later, Sun Telecom had increased the price again to $4.1.

One of the big market shifts driving up the cost of fiber is an increased demand for data centers as companies rush to build out the compute infrastructure they believe they’ll need for AI. “Almost every phone call I get from my customers is trying to see, how do we get them more? I think next year the hyperscalers will be our biggest customers,” Wendell Weeks, the CEO of fiber-optic cable manufacturer Corning, told CNBC after his company signed a deal with Meta for $6 billion in cable.

In a January LinkedIn post, North Carolina telecom company Brightspeed warned of “fiber-supply shortages.” Two other American ISPs told trade publication Broadband Breakfast said they’d seen orders for fiber unexpectedly cancelled. “We have heard concerns in recent weeks of timeframes slipping, and concerns about the ability to obtain supplies at all, as circumstances change,” Mike Romano, the CEO of NTCA, a rural broadband tradegroup, told Broadband Breakfast.

Data center driven demand is only part of the story. Wars in Ukraine, Iran, and the Sahel region of Africa are hungry for fiber-optic cable and manufacturers can barely keep up. Combined, Russia and Ukraine consume 50-60 million kilometers of fiber-optic cable every year, according to Kyiv Post. Most of this comes from China because both countries lack the domestic manufacturing base to produce that much cable. The demand has caused the price of a kilometer of Chinese fiber-optic to go from $2.33 in 2025 to $5.83 in 2026.

The core component of fiber-optic cables is a long piece of flexible and manufactured glass or plastic called an optical fiber. The delicate strands are about the width of a human hair. Ukraine doesn’t manufacture optical fibers. Russia had one factory in the city of Saransk but Ukraine destroyed it with drones in the spring of 2025. Now both countries rely on China to keep drones in the air. Exports on fiber-optic cable to Russia spiked after Ukraine destroyed the factory, hitting a height of 717.5 million meters in November of 2025.

“Ukraine has recently expanded its use of Starlink communications for attack drones, which are impractical for Russia to jam. The cost of a Starlink antenna—which is expended in an attack—is now lower than the cost of the longest-range FPV fiber-optic spools,” Roy Gardiner, an OSINT analyst at Defense Tech for Ukraine told 404 Media. “The drive toward the development and deploying at least partial autonomous control for drones to defeat electronic warfare jamming will accelerate as fiber optic FPVs become less available.”

During war humans become great innovators. The game of cat and mouse continues and fighters are developing strategies to combat fiber-optic drones. In September of 2025, Russian and Ukrainian military bloggers began to report a new technique for countering the wire driven drones: a 150-meter-long fence made of spinning barbed wire. The theory is that the fiber-optic cable, dragged along the ground, will get caught in the fence and severed. 

Despite rising costs and the dangers posed by barbed wire, the drones keep flying. In March, Iran used fiber-optic controlled drones to strike American targets in the gulf, including the destruction of a Black Hawk helicopter parked in Iraq. The known fiber-optic FPV drones top out at about 50 kilometers of cable, a distance that will clear the Strait of Hormuz at its narrowest point.

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Software Developers Say AI Is Rotting Their Brains

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Software Developers Say AI Is Rotting Their Brains

Tech company executives are confident that AI will completely transform the economy and point to the changes they see in-house to prove that this change is coming fast. At Meta, Google, Microsoft, and others, leadership says that AI generates a growing share of the overall code, which makes it cheaper and faster to produce. The implication is that if this AI is good enough that tech companies are using it internally to improve efficiency and reduce headcount, it’s only a matter of time until every other industry is similarly transformed. 

Developers who are told to use AI whether they like it or not, however, tell a different story. On Reddit, Hacker News and other places where people in software development talk to each other, more and more people are becoming disillusioned with the promise of code generated by large language models. Developers talk not just about how the AI output is often flawed, but that using AI to get the job done is often a more time consuming, harder, and more frustrating experience because they have to go through the output and fix its mistakes. More concerning, developers who use AI at work report that they feel like they are de-skilling themselves and losing their ability to do their jobs as well as they used to. 

“We're being told to use [AI] agents for broad changes across our codebase. There's no way to evaluate whether that much code is well-written or secure—especially when hundreds of other programmers in the company are doing the same,” a UX designer at a midsized tech company told me. 404 Media granted all the developers we talked to for this story anonymity because they signed non-disclosure agreements or because they fear retribution from their employers. “We're building a rat's nest of tech debt that will be impossible to untangle when these models become prohibitively expensive (any minute now...).”

The actual quality of output doesn't matter as much as our willingness to participate.

Tech company executives love to brag about how much of the code at their company is AI-generated. In April, Google said that three quarters of new code at the company was generated by AI. Last year, Microsoft CEO Satya Nadella said up to 30 percent of the company’s code was generated by AI. Microsoft’s CTO Kevin Scott said he expects 95 percent of all code at the company to be AI-generated by 2030. Meta’s Mark Zuckerberg said last year he expects AI to write most of the code improving AI within 12-18 months. Anthropic says 90 percent of the code written by most if its team is AI generated. Tech companies have also been bragging about their “tokenmaxxing,” or how much money they’re spending on AI tools instead of human employees.

💡
Are you a developer at Google, Microsoft, or another tech being pressured to use AI? I would love to hear from you. Using a non-work device, you can message me securely on Signal at ‪(609) 678-3204‬. Otherwise, send me an email at emanuel@404media.co.

Predictably, the huge spike in productivity that these companies claim their own AI products have enabled hasn’t resulted in more or better products, shorter work weeks, or better consumer experiences. Mostly, AI implementation in tech companies has been used to justify multiple massive rounds of layoffs. To name just a few examples where tech companies said they reduced headcount because of AI use, more recently, Meta said it would cut 10 percent of its workforce (around 8,000 people), Microsoft said it would offer voluntary retirement to 7 percent of its American workforce (around 125,000 people). Snapchat said it would lay off 16 percent of its full-time staffers (about 1,000 people). 

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Banks turn data centre loans into 2008-style financial time bombs

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An asset bubble is an opportunity. By late 2024, financiers were already constructing collateralised GPU obligations, lending against video cards.

CoreWeave borrows against its Nvidia GPUs — which have a useful life of maybe two years. CoreWeave then uses the loan to buy more Nvidia GPUs. This is fine.

Investment banks have been hard at work creating “novel types of debt structures” since then. What a great phrase that is.

Now banks and private lenders find themselves stuck with a large pile of horrifyingly rickety loans for data centres.

Why did they make these loans? Did they not realise everyone involved is a dissolute clown? Sure, but it’s where the numbers are! You get to write down loans on your books as assets with a big number on them! The lenders dived into AI lending head first.

And they’re realising this debt is the sort that isn’t good. The AI company borrowers would have to pull off several financial miracles to make all this pay off. And they’re really not going to.

So what do the banks do? They wrap up the radioactive poop bomb in a lovely package with a bow on top! From the FT: [FT, archive]

Groups including JPMorgan Chase, Morgan Stanley and SMBC are trying to find ways to distribute portions of data centre-related deals to a broader range of investors.

A collateralised debt obligation is when you take a pile of debts, you slice the pile into “tranches” based on how risky you can claim the debts are, and you sell the tranches as investments to fresh suckers.

If some of the debts fail, the least-risky tranches get paid out first! But they get the lowest interest. The riskiest ones get paid out last, but they get the highest interest. If everything goes well.

What happens if the wind changes and the whole sector goes bad, like housing did in 2007? The least-risky tranches get some payout. The rest go to zero. This causes problems that have names like “great financial crisis”.

As with collateralised mortgage obligations in 2008, the lenders know very well these data centre loans are shaky, and they want to spread the risk — and there’s quite a lot of risk, because these deals are stupidly big:

The efforts showcase the unprecedented scale of borrowing that underpins the AI sector and the pressure it is putting on lenders. Oracle and CoreWeave, two data centre operators, have borrowed hundreds of billions to build sites across the US for AI labs.

These deals cannot work out. The customers don’t exist. The entire population of the earth is not going to pay a couple of thousand dollars each a year for lying chatbots. These are bad debts and, at some point, the banks will have to admit that.

What happens when the AI bros go broke? A lot of lenders will mark massive losses. Banks and private credit will be hit hard.

In 2008, you had chain reactions where one company going down took down other companies and the US government eventually had to step in and bail them out to save the economy.

I’m not sure this particular part of the AI bubble crash will be at that level of disaster. There’ll be lots of other bad things happening. But I do predict fire sales of all the lenders’ other assets. As all these book assets out to be fairy gold — but they’re still liable for it.

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mkalus
14 hours ago
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ICE Agents Have List of 20 Million People on Their iPhones Thanks to Palantir

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ICE Agents Have List of 20 Million People on Their iPhones Thanks to Palantir

Immigration and Customs Enforcement’s (ICE) use of Palantir systems now means agency officials effectively have a list of 20 million people readily accessible on their iPhones, increasing the speed at which ICE can find houses to raid and people to arrest, according to comments made by a senior ICE official last week during a border security conference.

While ICE and the Department of Homeland Security (DHS) generally won’t answer questions from journalists about how the agency is using Palantir’s technology, senior officials were much more talkative during the Border Security Expo which took place in Phoenix, Arizona, last week. 404 Media spoke to four people who attended the conference. Here companies looking to sell their technology to ICE or other agencies gathered for two days of speeches, Q&As, and product pitches.

💡
Do you work for Palantir or ICE? Did you used to? I would love to hear from you. Using a non-work device, you can message me securely on Signal at joseph.404 or send me an email at joseph@404media.co.
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mkalus
15 hours ago
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Breaking Bread is an Artful Experience at This New Dallas Bakery

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Breaking Bread is an Artful Experience at This New Dallas Bakery

To savor a fresh baguette from a bakery in Paris is truly a feast for the senses, and often a highlight for foodies on holiday abroad. Few offerings stateside compare, though, with grab-and-go bakeries that all too often imitate the look of a standard French café, with little variation.

Refrigerated shelves in a store display bottled drinks, packaged foods, and jars. Adjacent open shelves hold more food items under signs reading "Market Selection" and "Favorites.

A bakery counter with pastries on display behind glass, shelves of packaged goods, and a tiled wall in a modern, minimalist interior.

The Bread Club in Dallas offers a different experience, with a contemporary take on traditional fare and favorite spots in the City of Light. Designed by INK+ ORO Creatives and inspired by the ritual of bringing loaves home from a Parisian market, it looks sophisticated without the contrived elements that would overwhelm the 1,120-square-foot eatery.

A bakery interior with shelves of assorted bread loaves and baguettes, and glass display cases filled with pastries and baked goods.

Bakery display with shelves of baguettes and round loaves, labeled “Fresh Daily Bread,” with a worker behind the counter and pastries in a glass case in the foreground.

Illuminated bakery signage displays the words "BAKED FRESH DAILY BREAD" above shelves stocked with loaves and packages of bread.

“The biggest challenge was reminding ourselves that we couldn’t turn the space into a French boulangerie,” says Tiffany Woodson, founder and CEO of the studio. “We kept coming back to strong architectural basics, trusting that restraint would do more to enhance the concept and showcase the product more than any decorative flourish could.”

Modern bakery café interior with marble counters, wooden shelves displaying pastries, sandwich and pastry signs, and tables and chairs by large windows letting in natural light.

Several baguettes are displayed upright on a wooden shelf, separated by dowels, with other loaves of bread visible on the left.

Modern bakery interior with tiled counters, display shelves filled with bread and pastries, and small tables with chairs by large windows letting in natural light.

The curved plaster ceiling adds a sense of volume, yet doesn’t seem heavy. It also serves as a marker that defines where customers line up, and highlights a main point of interaction, the counter. Delicate light boxes illuminate fresh goods, while shelving is accessible to both front-of-house staff and bakers that work in the rear. A coordinating vertical display stores the signature baguettes, and matching cases hold cold beverages and provisions.

A countertop with a potted plant sits beneath a menu listing signature drinks and prices on a cream-colored wall in a modern café.

A white La Marzocco espresso machine with stacked brown cups and clear glasses on top, situated on a countertop in a modern cafe setting.

The overall palette is neutral, but has just enough warmth, which forms a backdrop that will still align with the rest of the interior even as items on the menu or other facets change. Blue lettering on signage offers a hint of color. Luxe touches evoke the same softness as bread. Tiles with a subtle crackle finish complement the custom millwork. Walls with the same treatment used overhead provide a buttery texture throughout.

Modern coffee shop interior with a long marble counter, light wood furniture, coffee machines, and shelves with bread and pastries in the background.

Marble countertop with rounded edge on a tiled base featuring vertical rectangular tiles and brass trim, set on a textured floor.

The Bread Club blends the essence of Paris and its home base to reimagine what a bakery can be, no matter the location. “There’s a subtle nod to Texas wheat woven into the design’s sensibility, but it’s never literal,” Woodson notes. “It gives the space a timeless, unpretentious quality that feels welcoming to everyone.”

A bathroom with a marble-topped burgundy vanity, an irregularly shaped mirror, beige tiled walls, and a soap dispenser and small vase with flowers on the sink.

A sunlit cafe interior with wooden chairs and a marble table, featuring a glass vase with white flowers, near large floor-to-ceiling windows.

A sunlit café with wooden tables and chairs near large glass windows; each table has a small vase with white flowers. Outdoor seating is visible through the windows.

A sign reading "Pick up" with a logo is mounted on the exterior wooden wall of a modern building with large glass windows.

A bakery café with large windows, outdoor seating, and a bicycle with baskets of baguettes parked by the entrance.

Outdoor seating area with white tables and chairs near potted plants, next to a building with a sign reading "The Bread Club." A person sits at a table in the background.

Exterior of a bakery with striped awnings, a sign reading "The Bread Club," and a window displaying the word "Pastries.

A bakery called "The Bread Club" with striped awnings, outdoor seating, a bicycle with baskets, and large display windows under a cloudy sky.

To see this and other works by the design firm, visit inkandoro.com.

Photography by Aaron Dougherty.

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