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May 26, 20261
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Sam Altman Says AI 'Jobs Apocalypse' Less Likely Than Previously Predicted
OpenAI CEO Sam Altman reversed his previous predictions of widespread job displacement from AI, telling a Sydney audience he now believes an employment "apocalypse" is unlikely. He attributed the change to recognizing that human interaction at work cannot be replaced by AI, while the reversal comes amid mounting questions about AI's economic viability and costs.
Quick Facts
Who
Sam Altman
What
Sam Altman reversed previous predictions about AI causing job displacement
When
Tuesday (May 26, 2026)
Where
Sydney
- Sam Altman reversed previous predictions about AI causing job displacement
- Altman stated AI will not cause widespread 'jobs apocalypse'
- Altman acknowledged his previous intuitions about job impact were incorrect
- OpenAI, SpaceX, and Anthropic preparing for public offerings
- Companies questioning AI investment costs and return on investment
OpenAI CEO Sam Altman has reversed his previous dire warnings about artificial intelligence's impact on employment, telling a Sydney audience that he now believes a widespread "jobs apocalypse" is unlikely. Altman, who has previously stated that AI would "probably replace most of the jobs people do today" and that entire job categories would be "totally, totally gone," acknowledged he was wrong about the timeline and scale of job displacement. "I don't think we're going to have the kind of jobs apocalypse that some of the companies in our space advocate or talk about," he said during a virtual interview at a Commonwealth Bank of Australia conference on Tuesday.
Altman attributed his changed perspective to a deeper understanding of employment dynamics, particularly the irreplaceable value of human interaction in the workplace. "The human part of employment cannot be replaced by AI," he explained, noting that people fundamentally care about interacting with colleagues. He admitted that his intuitions about the impact on entry-level white-collar jobs were "just off" and expressed gratitude for being proven wrong on this critical issue.
The timing of Altman's statement coincides with broader challenges facing the AI industry. Major AI companies including OpenAI, SpaceX, and Anthropic are preparing for public offerings with ambitious revenue targets, yet signs of struggle are emerging. Companies are increasingly questioning whether AI investments justify their costs—Uber's Chief Technology Officer acknowledged burning through 2026's Claude Code budget in just four months, while Nvidia's vice president of applied deep learning suggested AI compute costs often exceed employee salaries. Microsoft has begun canceling expensive licenses for Claude access, raising questions about AI adoption economics.
Expert opinion remains divided on AI's long-term employment impact. Peter Wildeford, Head of Policy at the AI Policy Network, notes that economists disagree significantly on how AI will reshape the labor market, with particular uncertainty around workforce reallocation—whether displaced workers will transition to new professions or face prolonged unemployment. Wildeford suggests that negative public sentiment about AI may have influenced the industry's rhetorical shift, with Altman's reversal reflecting a broader strategic recalibration in how the sector frames its societal impact.
Topics
Why This Matters
Altman's reversal signals a significant recalibration in how the AI industry communicates about employment risk—moving from apocalyptic framing to more measured claims. This matters because it reflects mounting pressure on AI companies to justify massive investments amid visible economic headwinds: major vendors are dropping expensive AI licenses, costs are exceeding salaries, and public sentiment is skeptical. For workers, professionals, and policymakers, this shift suggests the industry is adjusting its narrative in response to both economic reality and reputational damage, making it critical to assess whether the new position reflects genuine technical insight or strategic repositioning.
Timeline & Sources
Jan 1, 2030
WireOpenAI targets $280 billion in revenue (up from $25 billion)