What's up: Cisco Systems announces new quantum chip; AMD guides for higher quarterly revenue; xAI's Memphis operation draws criticism for pollution.

Good morning, CIOs. Artificial intelligence is expected to have a significant impact on the workforce. Tangible evidence, however, can be tricky to find, often limited to scattered anecdotes even as figures within monthly job reports hint that something bigger may be underway.

Arvind Krishna, IBM's chief executive, recently shared his take on AI and the workforce, stating that AI has replaced hundreds of HR staff at the company. At the same time, IBM hired more programmers and salespeople, he said.

“While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up, because what it does is it gives you more investment to put into other areas,” Krishna told the Journal's Belle Lin.

Can that approach eventually apply to the workplace? It remains to be seen.

While there haven’t been widespread layoffs or downsizing as a result of AI across the economy, Lin explains, some business leaders have said they are holding down head count as they investigate the use of the technology. 

IBM this week also launched services that allow businesses to build their own AI agents and manage multiple agents, as well as the private business data that powers them. Read the story.

Cisco Systems announces new quantum chip and lab. The network-equipment company said its new quantum chip, developed as a prototype in collaboration with UC Santa Barbara, is designed to enable quantum networks to scale and work with existing fiber-optic infrastructure. Cisco also said it has opened a quantum lab in Santa Monica, Calif.

Vegas robotaxi crash results in software recall. The recall by Amazon’s robotaxi company Zoox follows an April 8 incident in which one of its boxy vehicles collided with a passenger vehicle. There were no injuries.

Training Grok is exhaust-ing. The 35 mobile methane-gas-powered generators used to power xAI’s South Memphis, Tenn., data center have made Elon Musk’s company the largest emitter of smog-producing nitrogen oxides in the county, Politico reports. None of the generators are equipped with pollution controls, typically required by federal rules, says Politico. The situation has drawn criticism from neighbors who held a town hall in April.

• The Trump administration is sabotaging its effort to win the global AI race by cracking down on renewables, a crucial (and often cheaper) source of energy for data centers, experts tell the FT.

EV sales streak grinds to a sudden halt. Sales of EVs in the U.S. fell by around 5% during April, according to estimates from the research firm Motor Intelligence, while the broader car market grew by 10%. Monthly EV sales in the U.S. have only declined three times since 2021.

Advanced Micro Devices guides for higher quarterly revenue. Chief Executive Lisa Su said strength in the company’s core businesses and expanding data center and artificial intelligence momentum drove the revenue growth in the fiscal first quarter. The Santa Clara, Calif., chip maker on Tuesday guided for fiscal second-quarter revenue of around $7.4 billion, up from $5.84 billion in the year-ago period. 

Super Micro cuts full-year outlook. The server maker cited short-term impacts of heightened economic uncertainty and tariffs that prompted some customers to delay orders of new servers and computer products.

Rivian expects tariffs to dent demand for its EVs. Rivian on Tuesday said that the changing landscape of trade policies will impact both consumer sentiment and demand. It now expects vehicle deliveries between 40,000 and 46,000 this year, down from a prior range between 46,000 and 51,000.

The U.S. is stepping up its intelligence-gathering efforts regarding Greenland, drawing America’s spying apparatus into President Trump’s campaign to take over the island. (WSJ)

India said it conducted military strikes on nine sites in Pakistan in retaliation for a deadly militant attack on tourists in Kashmir, intensifying a confrontation between the nuclear-armed neighbors. (WSJ)

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are traveling to Switzerland on Thursday to meet Beijing’s lead economic representative, potentially paving the way for broader trade talks. (WSJ)

Canadian Prime Minister Mark Carney told President Trump his country was “not for sale” after Trump reiterated his call for Canada to become the 51st state. (WSJ)

The WSJ CIO Journal Team is Steven Rosenbush, Isabelle Bousquette, and Belle Lin.

The editor, Tom Loftus, can be reached at thomas.loftus@wsj.com.