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The Recent Grad Crisis: How AI Broke Entry-Level Hiring

OpenAI and Microsoft restructure deal, NVIDIA and OpenAI to invest in UK data centers, OpenAI Nonprofit receives equity stake in PBC and more!

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Today in Everyday AI
8 minute read

🎙 Daily Podcast Episode: New research shows recent college grads are facing all-time high unemployment, partially due to AI. This one’s important. Give it a listen.

🕵️‍♂️ Fresh Finds: Microsoft to boost AI models computing power, Anthropic’s massive D.C. expansion, AI making schools reconsider “cheating” and more. Read on for Fresh Finds.

đź—ž Byte Sized Daily AI News: OpenAI and Microsoft restructure deal, NVIDIA and OpenAI to invest in UK data centers and OpenAI Non Profits receives equity stake in PBC. For that and more, read on for Byte Sized News.

đź§  Learn & Leveraging AI: The college system is broken. Companies aren’t hiring. What are parents, students and business leaders supposed to do? We give you the blueprint forward. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about OpenAI and Oracle inking a massive $300B deal, FTC probing big tech over chatbot safety, Perplexity raising $200M at $20B valuation and more. Check it here!

 The Recent Grad Crisis: How AI Broke Entry-Level Hiring đźŽ“ď¸Ź

The unemployment rate for recent grads?

At an all-time high. Why?

Because of AI.

A new study shows that almost 6% of recent college grads in the U.S. are unemployed, the highest rate since 2021 outside of the pandemic.

The main reason: companies are leveraging AI instead of hiring new employees.

↳ What do you need to know?
↳ How can students get the experience in AI that employers desperately want?
↳ Should employers be hiring recent grads, whose colleges likely banned AI?

Also on the pod today:

• University AI Skills Gap 🎓
• Future Workforce and AI Integration 💼
• Structural Collapse in Entry-Level Hiring 📉

It’ll be worth your 50 minutes:

Listen on our site:

Click to listen

Subscribe and listen on your favorite podcast platform

Listen on:

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Clueso helps you create product videos with AI, 21st.dev helps you share and remix UI components with AI, and Moku uses AI to auto-fill PDF or sheets in seconds.

Microsoft — Microsoft plans to expand its infrastructure to train its own AI models to help give more computing power.

Anthropic — Anthropic is planning a massive D.C. expansion to double staff and open an office in 2026 to work with lawmakers.

Agentic Browsers — Genspark released an improved agentic browser.

Google — Google has officially kicked off the Pennsylvania AI Accelerator for small businesses.

AI in Education — The rise of AI tools is making schools reconsider what counts as cheating.

1. Microsoft and OpenAI Sign Nonbinding MOU ✍️

Microsoft and OpenAI announced a nonbinding memorandum of understanding to formalize the next phase of their partnership while OpenAI moves ahead with a controversial restructuring that would leave its nonprofit parent controlling the for‑profit arm — a plan drawing scrutiny from California and Delaware attorneys general.

Microsoft has poured $13 billion into OpenAI since 2019 and will continue to tap OpenAI technologies even as it invests “significant” resources in its own models, and OpenAI says its nonprofit will hold an equity stake valued at over $100 billion.

2. NVIDIA and OpenAI Weigh Multibillion-Pound UK Data‑Center Push 🇬🇧

NVIDIA and OpenAI are reportedly in talks to back a major investment in UK data‑centre infrastructure that could be worth billions, with an announcement expected during President Trump’s state visit next week, according to CNBC and earlier Financial Times reporting.

The planned deal—being worked on with cloud firm Nscale—signals the UK’s push for “sovereign” AI capacity to keep sensitive compute onshore and reduce reliance on foreign infrastructure.

3. OpenAI Nonprofit to Take $100B+ Financial Stake in PBC đź’¸

According to OpenAI, the nonprofit will both control and receive an equity stake in a newly recapitalized Public Benefit Corporation valued at more than $100 billion, a move announced alongside a $50 million grants program for nonprofits focused on AI literacy, community innovation, and economic opportunity.

The announcement, highlighted in OpenAI’s statement, signals a timely shift: the nonprofit gains unprecedented resources to fund safety work and philanthropy while the PBC raises capital to scale products.

4. Microsoft to Build Its Own AI Chips — Moving Beyond OpenAI 🛠

Microsoft told employees it will invest heavily in building in-house AI chips and expand into open-source models and partnerships to reduce reliance on OpenAI, CEO Mustafa Suleyman said in an internal meeting reported by Business Insider.

The push follows the unveiling of MAI-1 — trained on 15,000 Nvidia H100 GPUs — which still trails top rivals and sits far below the cluster sizes used by Google, Meta and xAI.

5. Anthropic Gives Claude Rolling Memory to Teams and Enterprises đź§ 

Anthropic is now letting Team and Enterprise users enable Claude to automatically remember past chat details — like preferences, project context, and team processes — so future replies can use that information without being explicitly prompted.

The shift from manual memory prompts (recently added for paid users) to automatic memory for higher-tier customers speeds up workflows and helps Claude persist project-specific context across files and design work.

🦾How You Can Leverage:

A UCLA graduation ceremony just accidentally exposed the entire higher education scam on live television.

Jumbotron moment. 

Camera zooms in on proud graduate's laptop for that perfect "academic achievement" shot.

Camera scratch. Errr….. what? 

ChatGPT interface. 

Entire final project written by AI. 

Student literally giving thumbs up to the bot that did his homework.

That viral clip perfectly captures why an Oxford Economics study just revealed that 85% of ALL unemployment increases since mid-2023 come from fresh graduates entering the job market for the first time.

Not layoffs. Not recession fears.

Total structural collapse of entry-level hiring, with educators and corporate greed to blame. 

While universities banned AI the past few years, employers quietly made it mandatory for existing. 

Now 81% of college presidents STILL haven't published basic AI policies while their students hit 6% unemployment.

Game over?

Maybe. But it’s not too late to do something about it shorties. 

That’s why we tackled one of the biggest issues today on Everyday AI: why recent grads can’t get jobs because of AI and what to do about it. 

Here’s what you need to know. 👇

1 – Traditional entry level jobs are going away 🚨

Tech hiring imploded 40% from pandemic highs.

Here's the brutal math. Companies realized OpenAI’s o3 and Gemini 2.5 Pro performs what they used to hire college grads to do. 

Data entry? Six minutes instead of six months training humans.

Customer support? AI handles tier-one issues without bathroom breaks.

Analysis work? Instant outputs versus weeks of junior analyst labor.

Meanwhile, only 14% of faculty feel confident teaching AI. And 78% say their institutions provide zero AI literacy resources.

Zero. Big yikes. 

Universities spent 2022-2024 actively banning the technology employers now require for breathing. 

We're watching the most educated generation become unemployable because institutional leaders chose willful ignorance over adaptation, and would-be employers legit can’t wait to eliminate entry-level jobs. 

But smart private companies should be throwing parties right now.

While Fortune 500s slash headcount to appease shareholders, you can capture unprecedented talent pools. Recent grads desperate for opportunities. Big Tech refugees with decades of experience. Perfect storm.

Try This: 

Stop hiring for traditional entry-level roles entirely. 

Instead, create "AI Implementation Associate" positions where recent grads spend their first year identifying manual processes across departments and building AI solutions to eliminate them.

Pay them to essentially automate everyone else's busywork while documenting everything they learn and focus on future growth opportunities for meaningful human work. 

You'll get eager talent who builds competitive advantages while your competitors waste months training people for jobs that won't exist next year.  

2 – The Silver Tsunami Meets Mass Layoffs 🌊

Baby boomers are retiring with irreplaceable institutional knowledge.

Millions of them walking out the door forever and reports show half of them haven’t unloaded their domain expertise to coworkers. 

Simultaneously, Big Tech is dumping experienced talent to hit quarterly numbers. 

These aren't unemployable people. They're undervalued professionals who understand complex systems but need their next opportunity. 

Pure arbitrage.

We've spent years consulting with billion-dollar companies on "unlearning" legacy processes. 

They pay us to rebuild everything from scratch using AI. The companies capturing boomer knowledge before it disappears will dominate their industries.

Here's your contrarian play.

Public companies face shareholder pressure to cut humans while investing billions in AI infrastructure. Private companies don't have those constraints. Create hybrid teams pairing laid-off experts with hungry recent grads.

Document everything before it vanishes.

Train both groups on AI tools while extracting decades of domain expertise. Your competitors are following the Fortune 500 playbook of elimination. 

You can build amplification homies. 

Try This: Immediately identify your three most knowledgeable employees over 55 and offer them consulting contracts post-retirement to document their entire decision-making process. 

Don’t be a jerk and force them out. Give them a platform for when they’re ready. 

Not just procedures, but the WHY behind every choice they make. 

Everyday enterprises are losing millions in institutional knowledge annually because they wait until exit interviews. 

Start now while you can still capture the reasoning behind decades of experience.

(You know who would be great at that role? RECENT GRADS! They get to consume first-hand institutional knowledge and your company’s IP becomes more AI-ready.)

3 – Specialization Could Ruin Your Career Prospects 🤔

The worst career advice circulating right now?

"Double down on your expertise."

Catastrophically wrong, even though conventional wisdom says this is a no-brainer. 

Companies aren’t looking for specialists to become more specialized as domain-specific LLMs and SLMs hit the scene. 

Smart, AI-native companies want specialists who can leverage AI models for general purposes. 

Think: domain specialist turned adaptive generalist slanging world-changing models. 

We've watched this transformation happen real-time. A writer doesn't just enhance writing with AI. They expand into video creation, data visualization, strategic consulting, presentation design.

Everything.

Now, apply that scenario to your role. 

Try This: Create "AI Capability Audits" for every current employee where they demonstrate solving business problems outside their job description using AI tools they've never used before. 

Give your accountant a marketing challenge with Claude. 

Ask your sales rep to build a data dashboard with ChatGPT. 

Have your HR rep build an interactive onboarding with Gemini canvas. 

The people who thrive become your AI-amplified generalists. The ones who struggle get six months to adapt or find specialist roles elsewhere. 

 đźš¨ Bonus Reads 🚨

Now, here’s what you should do about it: 

If You're a Business Owner:

  • DON'T follow the Fortune 500 playbook if you're private - they're cutting for shareholders, you can grow

  • Zig while everyone else zags - unprecedented talent pool of laid-off experts and hungry grads

  • Think growth using AI, not just cost-cutting through elimination

  • Hire both recent grads AND experienced people - create hybrid teams that capture institutional knowledge

  • Start "unlearning" your company's processes and rebuild with AI from scratch

If You're an Everyday Business Professional:

  • Never stop experimenting with new AI tools - development doesn't pause because you found efficiency gains

  • Ditch the specialist mentality immediately - use AI to become a generalist who can adapt to anything

  • Transform your domain expertise into applications across multiple areas (writer → multimedia strategist)

  • Don't just deepen your skills, use AI to expand into completely different functions

If You're a Parent:

  • GET your kid's school AI policy in writing TODAY - if they don't have one or ban AI, seriously consider transfer

  • Have the hard conversation about education value vs. cost - is this an overpriced participation trophy?

  • Start building apps, companies, and AI projects WITH your kids at home

  • Rethink what higher education even means for your family's future

  • Don't wait for schools to catch up - make AI literacy happen at home

If You're a Student or Recent Grad:

  • Use your "recent grad card" before it expires - reach out to CEOs and executives who will actually respond

  • Build something with AI every single day instead of mass-applying to jobs that don't exist

  • DEMAND more from your school - start AI clubs, integrate AI into existing organizations

  • If your university bans AI, seriously consider transferring even as a senior

  • Go solve real business problems for actual humans using AI tools

  • Stop thinking like a job applicant, start thinking like a problem solver This isn't cruel, it's strategic survival. You're identifying who can evolve with your company versus who will become expensive overhead when AI advances next quarter.

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