Tech Counts the Cost of the AI Buildout as a Trillion Dollars Wipes Off and the Crypto Exit Rush Slows
A trillion-dollar reassessment of artificial intelligence spending shook U.S. technology stocks as last week’s sell-off left investors weighing the cost of building out the infrastructure behind AI. Morningstar and Computing UK reported that more than a trillion dollars in market value was wiped away across U.S. tech stocks. Intel fell after weak revenue guidance, while Amazon faced scrutiny over rising capital spending.
The concern is not whether AI will be used, but whether the enormous investment in computing capacity can deliver returns quickly enough — a question keeping technology shares volatile and this week’s moves hard to predict.
Meanwhile, Binance has resumed customer withdrawals after last week’s record crypto heist, which involved roughly six point three billion dollars. BBC, CoinDesk and Reuters reported that customers withdrew billions as access returned, though the net outflow amounted to a low-single-digit percentage of the exchange’s total assets. Binance says it is using corporate funds to cover the remaining stolen assets.
The FBI continues to attribute the theft to North Korea’s TraderTraitor cyber unit. The stolen funds are being moved through thousands of addresses and decentralized finance platforms, with much of the laundering involving conversion to Ethereum, according to The Verge, Al Jazeera and The Guardian.
The AI race is still expanding even as investors question its price tag: one leading AI company plans to rebrand its data centers as “AI compute campuses” and push for federal limits on the pace of AI development after the midterms, and it will combine usage allowances across its chat and coding products in December.
If you keep money on a crypto exchange, turn on every security feature available and treat recovery promises with care. And if you’re invested in tech, prepare for volatility this week. What would help you feel more confident about how companies manage AI spending or protect customer funds?
