The Covalen situation exposes a displacement logic that most AI labor analyses miss. The workers losing jobs in Dublin were not replaced by a model that can now do their work autonomously — the annotation and content moderation roles still require human judgment. What happened instead is that Meta's contractor Covalen began redundancy consultation after the company's AI capital expenditure left no room in the budget for the workforce that made that expenditure possible. The AI did not take these jobs. The cost of building the AI did. That distinction…