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Stocks Sink on Anxiety About Tech and A.I. Spending
The New York Times • • business
Key Points:
- Global stocks fell sharply on Friday, driven by a sell-off in technology shares amid investor concerns over massive spending on artificial intelligence (AI).
- The Nasdaq dropped over 2 percent, the S&P 500 declined 1 percent, and major U.S. tech companies Alphabet and Meta fell around 3 percent, while SpaceX shares fell more than 5 percent.
- Chinese AI company Moonshot launched Kimi K3, an open-source model claimed to rival leading American AI models, causing shares of competing Chinese AI firms to drop.
- Investors are increasingly questioning whether the large, often debt-financed investments in AI infrastructure and chip production will generate the anticipated returns.
- Companies continue to pour billions into AI-related data centers and factories to satisfy growing demand for AI technology and components.
