Symbolic imageTech selloff deepens as OpenAI reportedly cuts funding target by $10bn
US tech stocks fell again on Friday on doubts over AI spending. OpenAI's funding goal was reportedly lowered by $10bn.
The Nasdaq fell 2.9% on Friday, 30 October, after weak results from Amazon and Intel. According to Reuters it now stands 7.8% below its record of 6 October. Alphabet's earlier earnings miss had already kept the doubts alive. Bloomberg reports that OpenAI's funding target was cut by $10bn, and FAZ's business ticker likewise says the company is likely to receive ten billion dollars less. Both items are brief, and neither gives reasons or details. Bloomberg headlines the mood as Wall Street entering a 'show me' phase for AI.
Investors turn to bonds
The Financial Times reports that investors are trimming growth bets and returning to bonds after a long sell-off, as concern grows about the US economy's reliance on tech spending. The Wall Street Journal separately headlines a shortage of cheap money as the new bottleneck in America's AI build-out.