US tech stocks see sharp falls over AI cost fears (www.bbc.co.uk)

US tech stocks took a significant hit as fears over the rising costs associated with artificial intelligence (AI) investments rattled investors. Intel's shares plummeted nearly 30% following a warning about a weaker computer market despite plans to increase AI spending. This downturn contributed to a broader decline on the tech-heavy Nasdaq, which hit a two-month low, with other notable losses from Amazon and social media platforms like Reddit and Roblox. Alphabet, Google’s parent company, also saw its market value drop by over $500 billion, as AI advancements impacted its core search advertising revenue. This situation marks a critical moment for the AI/ML community, reflecting growing investor concerns about the sustainability of significant investments in AI amid uncertain returns. Major companies, including Intel and Amazon, acknowledged increasing expenditures outpacing revenues while navigating a slowdown in market demand, particularly in the PC sector. Analysts express that these challenges signal wider "growing pains" across the technology sector as firms aggressively pursue AI developments, leading to speculation about an impending slowdown in the industry’s growth trajectory.