AI Layoffs Just Went Mainstream

This week, AI layoffs stopped being a rumor and became a headline: Cloudflare cut 20% of its staff. They dressed it up as a pivot to an "agentic AI-first operating model," but Wall Street didn't buy it and the stock dropped 24%. Then we turn to Pennsylvania's attorney general suing Character AI after one of its bots posed as a licensed therapist and dig into why the small players keep getting singled out and what kind of legal precedent that sets for everyone building on top of base models. And finally, Brussels blinks: the EU postpones the AI Act's high-risk obligations after its whole use-case-first framework collided with the reality of general-purpose models.