For years, the companies behind America’s artificial-intelligence boom have raised hundreds of billions of dollars with ease. Now, the balance of power is shifting. Lenders and investors are becoming more selective and demanding tougher terms, signaling a new phase in the AI build-out. One key concern is that AI-related profits from hyperscalers and startups such as Anthropic and OpenAI may not materialize as quickly as promised.Boeing’s stock took a dive, after the company confirmed it would miss production and delivery targets for its 737 aircraft this year. Its commercial-airline division reported a quarterly operating loss of $697m, more than analysts had expected, but profits from defence, space and security surged to $492m.US stocks ended sharply lower on Friday, as technology shares led broad selling. The Nasdaq Composite dropped 2.86%, the S&P 500 fell 1.82%, and the Dow lost 572.25 points, or 1.09%. Intel sank 28.58% after a weaker fourth-quarter outlook.Binance has suspended all withdrawals and deposits after the world’s largest cryptocurrency exchange fell victim to an industry-record heist. The exchange put the “estimated total impact” of the hack at about $6.3bn and said that it had frozen $3bn of affected assets. An “initial investigation” suggested hackers had been able to compromise an engineer’s laptop and withdraw funds from the platform, Binance said, adding that it was working with law enforcement.The Federal Reserve has kept US borrowing costs on hold days before the midterm elections, even as the surge in fuel prices sparked by the Iran war reverberates across the world’s biggest economy. The Federal Open Market Committee held rates in a 3.75 per cent to 4 per cent range.Google shares fell sharply after it boosted its AI spending to more than $50bn in the third quarter, leading to a record cash burn that spooked investors alongside weakness in its core search advertising business. The stock price drop of more than 10 per cent, if sustained, would wipe more than $400bn from the group’s market value, the largest single-day loss in its history.Meta Platforms unveiled a plan to raise up to $95 billion in waves of stock offerings, as the company embarks on a cash-raising spree to fund its massive investments in artificial-intelligence infrastructure.Luxury stocks face prolonged decline; LVMH and Hermès drive €251 billion loss among Europe’s top firms. Valuations are approaching levels seen during the pandemic and the Global Financial Crisis, as investor sentiment shifts from growth expectations toward selling. Third-quarter results have added to concerns, although potential opportunities may be emerging amid the market damage.A brutal tech sell-off spread to Asia on Friday, as investor concerns over the sustainability of the debt-fuelled AI boom grow. The tech-heavy Nasdaq 100 slid 2.9 per cent yesterday after Meta’s warning alongside results after the close on Wednesday of an “increasingly challenging environment for raising capital”.Meta Ordered to Pay $25 Billion for Deceiving Users on Privacy. The penalty, one of the largest levied against a tech giant, stemmed from a lawsuit by New Mexico claiming the social media company had misled users about their data privacy.
