Nasdaq tumbles 694 points and drags markets worldwide lower on fears that huge AI spending won't pay off
Meta Platforms fell 8% at one point, its biggest drop since July, a day after it unveiled a new class of shares to fund AI building. Oil hit its highest level since May on worries over the war with Iran. In London the FTSE 100 closed 0.3% down at 10,725.03, and the FTSE 250 lost 0.9%.
Nvidia boss Jensen Huang reportedly warned of a funding bottleneck for smaller AI firms.
Brookings estimates AI infrastructure will cost over $10 trillion between 2025 and 2032.
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The GuardianSharp drops for AI stocks overwhelm markets worldwide as oil prices jumpThe TelegraphTech stocks fall as Nvidia boss warns of AI funding slowdownLBCStocks rattled by fears over tech sell-off and rising oil pricesNYTStocks See Steepest Decline in Months Amid A.I. WorriesReutersWall Street sinks as Nasdaq falls over 2% on AI cost worriesReutersSteep bill for AI buildout punishes Meta, other tech favoritesCBS NewsNasdaq dives more than 750 points as investors worry massive AI spending won't pay offReutersMeta shares slide, default insurance hits record as AI spending alarms investorsIrish TimesGlobal stocks slump as AI boom proves dangerous game and motor industry slows downReutersShort sellers pocket $6 billion in profits as neoclouds slide on AI debt fearsReutersInvestors see risk from US midterms to AI trade as data center backlash builds
