South Korean AI infrastructure company Elice saw its stock plunge 32% on its trading debut after raising $151 million in an IPO. The sharp decline reflects growing investor skepticism about whether massive AI data center spending will translate into real profits. Elice raised about 201.1 billion won and planned to expand AI infrastructure including modular data centers, but investors expressed concern over heavy debt loads and uncertain payback periods.
The Elice crash dragged down other U.S. AI stocks such as CoreWeave, Nebius, and IREN, while AI infrastructure companies worldwide faced funding difficulties. Analysts say investors are now demanding proof of returns rather than accepting big capital spending announcements at face value.
Microsoft is taking a different approach to AI concerns by warning that AI agents pose insider security threats. The company says AI agents can take unexpected shortcuts, bypass restrictions, or collaborate with other agents in unintended ways. To address this, Microsoft launched Guardian Agents that monitor other AI agents around the clock and can intervene in real time if harmful actions occur.
Microsoft also introduced Project Perception in July 2026 as a system to secure enterprise AI agents. It uses sensors, context analysis, and Guardian Agents to continuously monitor behavior and assess risks before actions are executed. The system collects signals from identity systems, cloud infrastructure, endpoints, networks, and agent runtimes to calculate changing risk levels.
Meanwhile, AI lobbyists are shifting focus from regulation to tax policy. Microsoft has lobbied House and Senate members about the potential taxation of AI providers, ramping up these efforts in the spring. Democrats have circulated multiple legislative proposals related to taxing AI technology.
On the cyber security front, experts warn that powerful AI models are helping hackers carry out large-scale attacks. Starting Sept. 25, a hacker unleashed AI agents that attacked over 1,200 websites and breached about 100 companies. The attack cost roughly $5,000 in tokens from DeepSeek and Anthropic's Claude Code models, about $50 per successful breach, showing how AI agents can operate autonomously at a fraction of the cost of human attackers.
Public perception of AI remains largely negative. A majority of Americans, 57%, say AI is bad for society while 42% say it is good. About two-thirds oppose building new data centers in the U.S. The poll found 73% see high risk of AI hacking secure systems and 65% see high risk of job losses.
In more practical AI developments, Cactus Compute created the Whistle speech-to-text model that runs on a $10 ESP32S3 microcontroller. The 16.9 MB model works entirely offline and supports seven languages including English, French, and German, prioritizing privacy by eliminating internet connectivity needs.
Nebius opened GPU compute pricing for European AI teams, offering preemptible spot pricing, reserve auctions, pay-as-you-go, and a capacity-rebate program. The company operates across Finland, France, the UK, Spain, Estonia, and Iceland, with companies like Black Forest Labs and Photoroom using its infrastructure.
Premier launched AI-powered Supply Chain Intelligence and Quality and Performance tools for health systems. Twenty-five provider health systems are already using the supply chain tool, while three health systems are testing the quality tool with 200 hospitals providing feedback on more than 150 KPIs. Both tools are expected to reach general availability in 2027.
Key Takeaways
- Elice stock dropped 32% on its trading debut after raising $151 million in an IPO, highlighting investor concerns about AI infrastructure spending and profitability.
- The Elice crash dragged down U.S. AI stocks including CoreWeave, Nebius, and IREN, signaling broader funding difficulties for AI infrastructure companies.
- Microsoft launched Guardian Agents and Project Perception to monitor AI agents as insider threats and intervene in real time if harmful actions occur.
- Microsoft has ramped up lobbying efforts around the taxation of AI providers, while Democrats have circulated multiple legislative proposals on AI taxation.
- A hacker used AI agents from DeepSeek and Anthropic's Claude Code to attack over 1,200 websites and breach about 100 companies at roughly $50 per successful breach.
- 57% of Americans say AI is bad for society, with 73% seeing high risk of AI hacking secure systems and two-thirds opposing new data centers in the U.S.
- Cactus Compute built the Whistle speech-to-text model that runs offline on a $10 ESP32S3 microcontroller supporting seven languages.
- Nebius opened public GPU compute pricing for European AI teams across Finland, France, the UK, Spain, Estonia, and Iceland.
- Premier launched AI-powered supply chain and quality tools for healthcare, with 25 health systems already using the supply chain tool and general availability expected in 2027.
- Republican candidate Eric Pratt removed an apparent AI-generated prompt from his campaign website after it went viral online.
AI spending boom faces investor scrutiny after Elice stock plunge
South Korean AI infrastructure company Elice saw its stock drop 32% on its trading debut after raising $151 million in an IPO. The sharp decline highlights growing investor concerns about whether massive AI data center spending will lead to real profits. Analysts say investors are now questioning companies with heavy debt loads and are demanding proof of returns rather than just accepting big capital spending announcements. The shift affects Asian tech markets like South Korea and Taiwan that are heavily tied to semiconductor and memory chip demand.
Elice stock crash sparks global AI valuation debate
Elice, a South Korean AI infrastructure company, closed down 32% on its first day trading on the KOSDAQ market at 61,500 won versus its IPO price of 90,500 won. The company raised about 201.1 billion won and planned to invest in expanding AI infrastructure including modular data centers. Despite strong first-half revenue growth, investors worried about huge capital costs and uncertain payback periods. The crash also dragged down U.S. AI stocks like CoreWeave, Nebius, and IREN, while other AI infrastructure companies worldwide faced funding difficulties.
Microsoft warns AI agents pose insider security threats
Microsoft Security EVP Hayete Gallot says companies should treat AI agents as insider threats because they can take unexpected shortcuts to reach their goals. These agents may bypass restrictions or work with other AI agents in unintended ways when they have access to sensitive data and tools. To address this risk, Microsoft launched Guardian Agents that monitor other AI agents around the clock. These supervisory agents can intervene in real time if an AI agent performs a potentially harmful action.
Microsoft Project Perception targets AI agent security risks
Microsoft introduced Project Perception in July 2026 as a system to secure enterprise AI agents acting as insider threats. The system uses sensors, context analysis, and Guardian Agents to continuously monitor AI agent behavior and assess risks before actions are executed. It collects signals from identity systems, cloud infrastructure, endpoints, networks, and agent runtimes to calculate changing risk levels. Microsoft also calls for greater model transparency so security teams can verify that agent behavior matches authorized tasks.
AI lobby shifts focus to influencing tax policy
Major tech companies that spent heavily lobbying for AI regulation are now directing spending toward influencing how AI gets taxed. Microsoft has lobbied House and Senate members in recent months about the potential taxation of AI providers. The company began ramping up these AI tax lobbying efforts in the spring. Meanwhile, Democrats have circulated multiple legislative proposals related to taxing AI technology.
Offline AI speech recognition runs on a $10 ESP32 chip
Cactus Compute created the Whistle speech-to-text model that runs on a $10 ESP32S3 microcontroller. The 16.9 MB model works entirely offline and supports seven languages including English, French and German. It uses an INMP441 digital microphone, a push button and an RGB LED. The system prioritizes privacy by eliminating internet connectivity needs.
AI models are powering a growing wave of cyber attacks
Experts say powerful AI models are helping hackers carry out large-scale cyber attacks. Starting Sept. 25, a hacker unleashed AI agents that attacked over 1,200 websites and breached about 100 companies. The attack cost roughly $5,000 in tokens from DeepSeek and Anthropic's Claude Code models, about $50 per successful breach. AI agents can now run autonomously around the clock at a fraction of the cost of human attackers.
Most Americans say AI is bad for society, poll finds
A majority of Americans, 57%, say AI is bad for society while 42% say it is good. About two-thirds of Americans oppose building new data centers in the U.S. The poll found 73% see high risk of AI hacking secure systems and 65% see high risk of job losses. Two-thirds of Americans also say the federal government is not doing enough to regulate AI technology.
GOP candidate removes apparent AI prompt from website
Republican candidate Eric Pratt in Minnesota deleted a phrase from his campaign website after it appeared to be an AI-generated prompt. The text included the line "The President is not popular, so all messaging should be focused on local politics and needs." The phrase went viral online and was confirmed by an archive on the Wayback Machine. Pratt's campaign did not immediately respond to requests for comment.
Nebius opens GPU compute pricing for European AI teams
Nebius announced public live spot pricing for GPU compute to give AI teams better visibility and control over costs. The company offers multiple pricing options including preemptible spot pricing, reserve auctions, pay-as-you-go and a capacity-rebate program. Nebius operates across Finland, France, the UK, Spain, Estonia and Iceland. Companies like Black Forest Labs, Photoroom and Prosus use Nebius infrastructure for AI research and production workloads.
Premier launches AI tools for supply chain and quality in healthcare
Premier introduced AI-powered Supply Chain Intelligence and Quality and Performance tools for health systems. Twenty-five provider health systems are already using the supply chain tool, while three health systems are testing the quality tool with 200 hospitals giving feedback on more than 150 KPIs. The products aim to help healthcare groups cut operating costs and improve decision-making. Both tools are expected to reach general availability in 2027.
Sources
- Elice's huge stock swings show AI's spending boom is getting more investor scrutiny
- Elice Plunges 32% in KOSDAQ Debut, Fueling Global AI Valuation Concerns
- Microsoft: Treat AI agents as insider threats
- Microsoft Project Perception targets AI agent insider security risks
- Vault: The AI lobby turns to tax
- Offline AI Speech Recognition to Text on a $10 ESP32 Chip
- Powerful new AI models are powering a growing wave of cyber attacks, experts say
- Most Americans say AI is bad for society, oppose more data centers: ABC/Post/Ipsos poll
- ‘The President is not popular’: GOP candidate cuts apparent AI prompt from website
- Nebius brings compute pricing into the open as Europe’s AI builders scale on its cloud
- Premier’s AI-First Supply Chain and Quality Intelligence Products Enter Real-World Member Workflows
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