The tech sector recently experienced a challenging period, with the Nasdaq Composite recording its worst week since April amidst growing concerns about a potential AI bubble and high stock valuations. The S&P 500 and Dow also saw significant declines. Companies like Super Micro Computer, Microsoft, Nvidia, AMD, Palantir, Oracle, and Meta collectively lost approximately $1 trillion in market value. Nvidia's shares crashed over 4% after the US blocked AI chip sales to China, while Palantir slid 1.2% following its earnings report. Oracle shares dropped 11%, and issues at OpenAI further contributed to market jitters. This market pressure coincided with a fall in consumer sentiment to a three-year low of 50.3, partly due to a 38-day government shutdown and rising inflation expectations of 4.7%. Despite these market anxieties, investor Ruchir Sharma emphasized that artificial intelligence is a more significant force shaping global economies than President Trump's tariffs, noting that the US economy has become "one big bet on AI." Major tech companies are planning to spend $500 billion on AI infrastructure next year, with corporate AI investment reaching $252.3 billion in 2024, marking a 45% increase from the previous year. Sharma, however, cautioned about potential declining returns from overinvestment. In terms of AI innovation, OpenAI CEO Sam Altman discussed plans for a future local AI device. This device would run powerful AI models like GPT-5 or GPT-6 locally with low power, offering benefits such as faster performance, better privacy, and extended battery life, potentially reducing reliance on smartphones. Jony Ive might oversee this project. Meanwhile, researchers are developing "liquid neural networks" inspired by the flexible brain of the tiny Caenorhabditis elegans worm, aiming for smaller, smarter, and more transparent AI systems that can adapt and learn on devices like drones and self-driving cars. AI is also transforming business operations across various industries. Bic and Kimberly-Clark are using AI to enhance their sales and marketing teams, breaking down barriers, providing data access, and optimizing tasks like product placement on Amazon. Both companies are also focusing on training employees to effectively use AI. In the financial sector, investors are increasingly adopting AI as a "smart colleague." Ai Ling Ong from Lion Global Investors uses generative AI, always reviewing its output, while Joo Lee of Arrowpoint Investment Partners integrated AI from the start to boost developer productivity and accelerate trading strategies. Stampli's AI, named Billy, recently celebrated three years of powering its Advanced Vendor Management software, streamlining vendor onboarding, document compliance, and payment visibility. Recognizing the complexity of the field, Michael Lane, a 49-year-old Vice President of Development at Rev, is pursuing a part-time master's degree in AI at East Texas A&M University, highlighting the importance of formal education for building trustworthy AI products. However, the AI crypto space faces legal challenges, as Fetch.ai has filed a class action lawsuit against Ocean Protocol and its founders in New York. Fetch alleges that Ocean Protocol misled its community about 700 million OCEAN tokens intended for community rewards, instead converting them to FET and selling them after joining the Artificial Superintelligence Alliance, which Fetch claims lowered FET's value. Ocean Protocol Foundation denies these claims and plans to contest the lawsuit.
Key Takeaways
- The Nasdaq Composite experienced its worst week since April, with major tech companies including Nvidia, Microsoft, AMD, Palantir, Oracle, and Meta collectively losing approximately $1 trillion in market value due to AI valuation fears and other economic factors.
- Nvidia shares fell over 4% after the US blocked AI chip sales to China, and Palantir slid 1.2% following its earnings report.
- Investor Ruchir Sharma states AI is a greater economic force than Trump's tariffs, with major tech companies planning to spend $500 billion on AI infrastructure next year and corporate AI investment reaching $252.3 billion in 2024.
- OpenAI CEO Sam Altman envisions a future local AI device, potentially overseen by Jony Ive, capable of running powerful models like GPT-5 or GPT-6 locally for enhanced privacy and performance.
- Bic and Kimberly-Clark are leveraging AI to improve sales and marketing, breaking down team barriers, optimizing product placement on platforms like Amazon, and training employees.
- Investors are adopting AI as a "smart colleague," with firms like Lion Global Investors and Arrowpoint Investment Partners using generative AI for market understanding and accelerating trading strategies.
- Stampli's AI "Billy" has completed three years of enhancing Advanced Vendor Management, streamlining onboarding, compliance, and payment visibility for customers.
- New AI research is developing "liquid neural networks," inspired by the flexible brain of the C. elegans worm, to create adaptive and transparent AI systems for devices like drones and self-driving cars.
- A Vice President of Development at Rev, Michael Lane, is pursuing a part-time master's degree in AI, underscoring the growing need for formal education to build trustworthy AI products.
- The Artificial Superintelligence Alliance faces a class action lawsuit from Fetch.ai against Ocean Protocol, alleging misleading token sales that impacted FET's value.
Nasdaq faces worst week since April as AI fears grow
Tech stocks saw a tough week, leading the Nasdaq Composite to its worst performance since April. Investors worry about a possible AI bubble and high stock valuations. The S&P 500 and Dow also fell significantly. Oracle shares dropped 11%, and issues at OpenAI added to market jitters. Experts like Scott Wren from Wells Fargo Investment Institute noted concerns about AI valuations. The ongoing US government shutdown also contributed to market pressure.
US stocks fall sharply as AI fears grow
US stocks dropped significantly on Friday, fueling fears about the AI market. The Nasdaq fell 1.9%, the S&P 500 lost 1.1%, and the Dow slipped 0.7%. Nvidia shares crashed over 4% after the US blocked AI chip sales to China. Palantir also slid 1.2% on heavy trading volume. Consumer sentiment fell to 50.3, and inflation expectations increased to 4.7%.
Nasdaq falls as AI spending fears and low consumer confidence hit
Stocks tumbled Friday, with the Nasdaq dropping 3% for its worst week since April. Consumer sentiment fell to 50.3, a three-year low, due to the 38-day government shutdown and inflation worries. Investors also worried about massive AI spending, fearing overvalued tech stocks. Companies like Super Micro Computer, Microsoft, Nvidia, AMD, Palantir, Oracle, and Meta lost about $1 trillion in market value. Palantir's stock fell after earnings, and Nvidia CEO Jensen Huang's comments on China's AI lead added to concerns.
Tech VP Michael Lane goes back to school for AI master's
Michael Lane, 49, a Vice President of Development at Rev, will start a part-time master's degree in AI at East Texas A&M University in spring 2026. With over 20 years in tech, he now leads AI product engineering for the audio transcription company. Lane believes AI is a complex and rapidly changing field, making formal education essential to build trustworthy AI products. He notes that online courses are not enough to grasp the deep foundations needed for building, not just using, AI tools. He advises all software developers to keep learning about AI.
Bic and Kimberly-Clark use AI to improve sales and marketing
Bic and Kimberly-Clark are using AI to improve their sales and marketing teams. Karen Schwartz from Bic and Josh Blacksmith from Kimberly-Clark shared insights at a recent summit. They explained that AI helps break down barriers between teams and gives everyone access to important data. This allows for better collaboration on tasks like improving product placement on Amazon and optimizing content. Both companies also focus on training employees to use AI effectively, ensuring a balance between automation and human creativity.
Fetch sues Ocean Protocol over crypto token sales
The Artificial Superintelligence Alliance, which aimed to unite Fetch.ai, SingularityNET, and Ocean Protocol, is facing legal trouble. Fetch.ai has filed a class action lawsuit against Ocean Protocol and its founders in New York. Fetch claims Ocean Protocol misled its community about 700 million OCEAN tokens meant for community rewards. Instead, Ocean allegedly converted these tokens to FET and sold them after joining the alliance, which Fetch says lowered FET's value. Ocean Protocol Foundation denies these claims and plans to fight the lawsuit.
Investors use AI as a smart colleague
Investors are learning to use AI as a helpful colleague, combining human knowledge with technology. Ai Ling Ong from Lion Global Investors emphasized that understanding the market is crucial to train AI effectively. Her team uses generative AI but always reviews its output. Joo Lee of Arrowpoint Investment Partners built AI into his firm from the start to boost developer productivity and launch trading strategies faster. Their goal is a "Jarvis-like" AI system where different AI agents work together across the firm. This approach allows AI to assist humans, making it a valuable partner in investment decisions.
OpenAI dreams of a local AI device
OpenAI CEO Sam Altman has discussed plans for a future local AI device that would not need a constant internet connection. This device would run powerful AI models like GPT-5 or GPT-6 locally with low power. Altman envisions a small, screen-less digital companion that could offer benefits like faster performance, better privacy, and longer battery life. While it would still need cloud access for some information, it might connect through a smartphone. OpenAI hopes this device, possibly overseen by Jony Ive, could change how people interact with technology and reduce smartphone use.
Investor Ruchir Sharma says AI is bigger than Trump's tariffs
Investor Ruchir Sharma told NDTV that artificial intelligence is a greater force shaping the US and world economies than President Trump's tariffs. Sharma noted that AI's impact has "out-Trumped Trump," despite the President's continued defense of his tariff strategy. He explained that the US economy has become "one big bet on AI," with major tech companies planning to spend $500 billion on AI infrastructure next year. While AI is transformative, Sharma warned that overinvestment could lead to declining returns, similar to past technology booms. Corporate AI investment reached $252.3 billion in 2024, a 45% increase from the previous year.
Tiny worm brain inspires new flexible AI
Researchers are developing a new type of AI called "liquid neural networks" inspired by the tiny worm Caenorhabditis elegans. This millimeter-long worm has only 302 neurons, but its brain's flexible communication style is key. Unlike traditional AI, liquid neural networks can adapt and learn while running on devices like drones and self-driving cars. Researcher Ramin Hasani explained that these networks are designed to be flexible, changing how they compute with each new input. This approach aims to create smaller, smarter, and more transparent AI systems.
Stampli's AI Billy celebrates three years of vendor management
Stampli announced the third anniversary of its Advanced Vendor Management software, powered by the AI named Billy. This software helps customers create workflows for onboarding new vendors and ensures document compliance. It also provides vendors with clear visibility into their payment status. Billy acts as an employee for Stampli's customers, making accounts payable and procure-to-pay solutions more efficient.
Sources
- Nasdaq set for worst week since April as AI nerves flare
- AI bubble bursting or deeper market correction? US stocks plunge as Nvidia crashes 4% and Palantir slides 1.2% — Wall Street’s favorite AI synonyms tumble big
- Nasdaq plunges as consumer sentiment nears historic lows, panic over...
- I worked in tech for over 20 years. Now I'm getting a master's in AI because there's too much for me to learn alone.
- How Bic, Kimberly-Clark Use AI to Democratize Data, Reshape Sales & Marketing Teamwork
- Crypto's flagship AI project fractures: Fetch sues Ocean over 263M FET ‘community’ sales
- The human + data investor: AI as a colleague | Insights
- OpenAI's Local AI Device Dreams
- "Bigger Force Than Trump": Investor Ruchir Sharma To NDTV On AI, Tariffs
- This tiny worm’s brain could transform artificial intelligence. Here’s how | BBC Science Focus Magazine
- Stampli's AI, Billy, Marks Three Years of Advanced Vendor Management
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