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HP Hastens China Exit as Tariffs Kick a Hole in its Profits
An anonymous reader shares a report: HP is close to ending production of North-America-bound products in China, after US tariffs kicked a hole in its quarterly profits. "A quarter ago, we shared that our goal was to have less than ten percent of the products in North America being shipped from China by September," HP president and CEO Enrique Lores told investors on the company's Q2 2025 earnings call. "We have accelerated that and we share that now almost no products will be coming from China sold in the US by June. It's a very significant acceleration of the plan that we have."
"We accelerated the shift of factories out from China into Southeast Asia, into Mexico to a certain extent in the US to mitigate the impact of the change," he added. Lores also revealed that HP has removed the US as a distribution hub for products sold in Canada or to Latin America. Doing so means HP doesn't have to pay tariffs.
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Researchers Warn Against Treating AI Outputs as Human-Like Reasoning
Arizona State University researchers are pushing back [PDF] against the widespread practice of describing AI language models' intermediate text generation as "reasoning" or "thinking," arguing this anthropomorphization creates dangerous misconceptions about how these systems actually work. The research team, led by Subbarao Kambhampati, examined recent "reasoning" models like DeepSeek's R1, which generate lengthy intermediate token sequences before providing final answers to complex problems. Though these models show improved performance and their intermediate outputs often resemble human scratch work, the researchers found little evidence that these tokens represent genuine reasoning processes.
Crucially, the analysis also revealed that models trained on incorrect or semantically meaningless intermediate traces can still maintain or even improve performance compared to those trained on correct reasoning steps. The researchers tested this by training models on deliberately corrupted algorithmic traces and found sustained improvements despite the semantic noise. The paper warns that treating these intermediate outputs as interpretable reasoning traces engenders false confidence in AI capabilities and may mislead both researchers and users about the systems' actual problem-solving mechanisms.
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AI May Already Be Shrinking Entry-Level Jobs In Tech, New Research Suggests
An anonymous reader quotes a report from TechCrunch: Researchers at SignalFire, a data-driven VC firm that tracks job movements of over 600 million employees and 80 million companies on LinkedIn, believe they may be seeing first signs of AI's impact on hiring. When analyzing hiring trends, SignalFire noticed that tech companies recruited fewer recent college graduates in 2024 than they did in 2023. Meanwhile, tech companies, especially the top 15 Big Tech businesses, ramped up their hiring of experienced professionals. Specifically, SignalFire found that Big Tech companies reduced the hiring of new graduates by 25% in 2024 compared to 2023. Meanwhile, graduate recruitment at startups decreased by 11% compared to the prior year. Although SignalFire wouldn't reveal exactly how many fewer grads were hired according to their data, a spokesperson told us it was thousands.
While adoption of new AI tools might not fully explain the dip in recent grad hiring, Asher Bantock, SignalFire's head of research, says there's "convincing evidence" that AI is a significant contributing factor. Entry-level jobs are susceptible to automation because they often involve routine, low-risk tasks that generative AI handles well. AI's new coding, debugging, financial research, and software installation abilities could mean companies need fewer people to do that type of work. AI's ability to handle certain entry-level tasks means some jobs for new graduates could soon be obsolete. [...]
Although AI's threat to low-skilled jobs is real, tech companies' need for experienced professionals is still rising. According to SignalFire's report, Big Tech companies increased hiring by 27% for professionals with two to five years of experience, while startups hired 14% more individuals in that same seniority range. A frustrating paradox emerges for recent graduates: They can't get hired without experience, but they can't get experience without being hired. While this dilemma is not new, Heather Doshay, SignalFire's people and talent partner, says it is considerably exacerbated by AI. Doshay's advice to new grads: master AI tools. "AI won't take your job if you're the one who's best at using it," she said.
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