Box CEO warns of 'AI psychosis' as layoffs surge and DuckDuckGo climbs
ClickUp cuts 22% of staff for AI agents, while users flee Google's AI search.
Box CEO Aaron Levie coined the term “AI psychosis” to describe executives who believe AI can replace jobs they don't fully understand. This mindset is fueling real-world consequences: ClickUp recently cut 22% of its workforce to make room for AI agents, and tech layoffs in 2026 are already approaching the total for all of 2025. Meanwhile, privacy-focused search engine DuckDuckGo is seeing a surge in installs as users actively avoid Google's AI-driven search results.
On the latest TechCrunch Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O'Kane explore this tension between AI optimists and skeptics—and why both sides may be right. The episode also covers Waymo's new Ojai robotaxi in Phoenix, Snowflake's massive $6 billion five-year AWS agreement, Stord's $250 million round at a $3 billion valuation (positioning itself as the “anti-Amazon” fulfillment startup), and OpenRouter's $113 million raise highlighting the ongoing demand for AI infrastructure. The broader takeaway: the AI agent wave is reshaping hiring, not just reducing headcount.
- ClickUp cut 22% of its workforce to replace roles with AI agents
- DuckDuckGo installs are rising as users reject Google's forced AI search results
- Snowflake signed a $6B, 5-year deal with AWS; Stord raised $250M at $3B valuation
Why It Matters
AI-driven layoffs are accelerating, but executives may be overestimating AI's capabilities—creating real market shifts and user backlash.