Lates News

According to Reuters, after U.S. stocks closed on Thursday, market concerns about the cost of the AI boom intensified further. Earnings reports from Amazon and Intel showed that the race to build AI infrastructure is not only putting pressure on tech companies but also beginning to weigh on consumers. Amazon's shares fell about 7% after hours, while Intel plunged about 18% after hours. In addition, the selloff quickly spread beyond these two companies. AI cloud service providers CoreWeave, Nebius, and Iren fell about 6% to 7% after hours. A broader shift is underway in how large tech companies finance their spending. Massive data center investments have turned companies that were once lightly indebted into major borrowers. Both Alphabet and Meta posted net cash outflows in the September quarter. Microsoft is the only company in this group that is not burning cash, but it also launched a $25 billion bond offering on Thursday. Tech giants are still able to sustain this level of spending, but investors have become increasingly cautious about smaller AI cloud companies that have borrowed heavily to fulfill large backlogs of orders.