"This is [is this?] the sound of a bubble popping."

"Mark Zuckerberg had exciting news to share yesterday. His company Meta had finished a great quarter—and would continue to increase spending on AI.

"He said that yesterday afternoon. But when the market opened this morning, Meta shares dropped more than $80. That’s $200 billion in market cap wiped out in an instant. 

Meta’s share price this week 

"Why don’t investors like AI? Only a few months ago, companies saw their shares skyrocket when they made AI investments.

"In September, Oracle’s stock shot up 36% in just one day after announcing a huge deal with OpenAI. The share price increase was enough to make the company’s founder Larry Ellison the richest man in the world.

"But then investors changed their mind. Since that big day, Oracle shares have fallen $60. Larry Ellison is no longer the richest man in the world.

"This is [is this?] the sound of a bubble popping."

~ Ted Gioia from his post 'The Bubble Just Burst'

"Mark Zuckerberg’s Meta is spending untold billions on infrastructure and top talent for its AI ambitions.

"In fact, the CEO announced during the company’s earnings call on Wednesday, Meta will be spending between $70 billion and $72 billion on AI this year — up from its previous estimate of $66 billion to $72 billion, as CNBC reports.

"Unsurprisingly, that cash bonfire isn’t going over well with investors. Meta’s shares slid by more than 11 percent on Thursday, indicating widespread skepticism about the company’s ability to stop bleeding billions of dollars as it races to keep up with the AI industry’s ever-escalating expenditure commitments.

"That’s particularly striking because the drop comes in spite of Meta’s revenues exceeding Wall Street’s estimates. In other words, out of control AI spending is starting to rattle investors. 'The total dollar spend is just kind of what hangs us up a little bit,' [said one]...

"The AI industry is seemingly approaching a major inflection point, with Meta competitors Alphabet, and Microsoft tripling down on AI by increasing their planned spending to even loftier heights, fuelling fears of a growing AI bubblethat could take down the entire US economy with it if ever pops."

~ Victor Tangermann from his post 'Meta Stock Plummets as Investors Horrified at How Much Zuckerberg Is Spending on Misfired AI'