Global technology shares extended their decline as disappointing US results sharpened doubts about whether enormous investments in artificial-intelligence infrastructure will pay off, and how companies will finance them. Alphabet fell 13 per cent, erasing a record $500bn in market value, after reporting a second consecutive quarter of cash burn and warning that AI-driven search could threaten its advertising business. Investors are also questioning the pace and practical limits of capital spending, including implementation delays and infrastructure bottlenecks. Intel sank 22 per cent in after-hours trading after forecasting weaker-than-expected sales amid continued softness in its core PC-chip business.
The sell-off spread across markets and the AI supply chain. Japan’s Nikkei 225 dropped 2.5 per cent, while SoftBank, an OpenAI investor, fell 6.3 per cent and has lost 48 per cent since its June peak. South Korean memory-chip makers Samsung Electronics and SK Hynix declined 5.1 and 7.2 per cent; TSMC, Kioxia and Tokyo Electron also fell. Fujitsu plunged 16.2 per cent after results disappointed, despite its focus on AI infrastructure. US futures pointed to further losses, with the Nasdaq 100 down 2.1 per cent and the S&P 500 down 1 per cent. Only Apple, Microsoft and Nvidia among the Magnificent Seven were ahead for the year. Falling Treasury yields signaled a shift from technology shares toward safer assets.
Summary generated by AI from the linked article. hn.today is not affiliated with Hacker News or Y Combinator.
Anthropic’s IPO filing reveals deep ties to Amazon, Google, Microsoft, and Broadcom as investors, customers, rivals, and suppliers. These entanglements and massive AI spending are making tech companies’ fortunes increasingly interconnected, raising investor concerns about the AI boom. (thebignewsletter.com)
YC-backed Subvocal raised $1.3 million to develop glasses that turn silent mouthing into text. Developer Joe Blau built a free, open-source AirPods alternative in nine minutes, but it recognizes only a few trained words. (startupfortune.com)
Steve Eisman’s views on a possible Anthropic IPO are not included in the provided content. The page only shows a browser compatibility notice. (youtube.com)
Anthropic’s IPO timing could affect how its employees are taxed on company shares and equity compensation. The date may change when employees can sell shares or qualify for tax benefits. (forbes.com)
OpenAI raised less than half of its $30 billion target in its latest funding round. The round brought in under $15 billion. (wsj.com)
Anthropic is expected to receive a BB-range speculative credit rating after its IPO, according to a Financial Times report citing Blackstone’s forecast. The rating could make financing its heavy spending on computing more expensive, though the forecast is not a final rating. (techcrunch.com)
Today's best Hacker News stories, summarized and screenshotted, one email a day.