Alphabet, Intel, Amazon Plummet Amid AI Spending Fears

Key Takeaways

• <ul><li>Alphabet lost 12.6% of its value, wiping out roughly $500 billion in market cap amid AI spending fears</li><li>Intel plunged 23-28.8% depending on the session, marking its worst drop since 1974 after weak profit forecasts</li><li>Amazon fell over 7% while reporting $94.8 billion in AI-related cash burn</li><li>Thrive Holdings, backed by OpenAI, acquired ADT for $7.6 billion as AI investors pivot to buying established businesses</li><li>Sam Altman said running AI models on personal computers is a bad idea and that DRAM should be concentrated in data centers</li><li>OpenAI is designing a custom AI processor called Jalapeno, built specifically for AI workloads</li><li>Scale AI faces five complaints alleging illegal tracking of European worker devices and forced biometric data collection</li><li>87% of teams re-check AI agent outputs, with many employees spending more time verifying machine work than before</li><li>Google says AI Mode is driving the fastest search query growth in five years despite lower ad revenue per query</li><li>Zambia partnered with Huawei to train government officials in AI, with in-person classes starting November 2, 2026</li></ul>

Tech stocks fall as AI spending worries and weak earnings shake markets

Tech firms took heavy losses after disappointing earnings from Amazon, Intel, and Alphabet fanned fears about the AI investment boom. Alphabet fell over 12 percent, Amazon dropped more than 7 percent, and Intel cratered 23 percent. The selloff spread across Asia, hitting chipmakers like SK hynix, Samsung, and Kioxia. Investors worry that rising AI spending may not deliver strong returns.

Stocks plunge and bonds rally as AI spending alarms investors

Tech shares sank on Friday as investors feared that huge and rising AI spending may not earn enough returns. Alphabet lost about 12.6 percent of its value, wiping out $500 billion in market value. Intel plunged 23 percent after hours and Amazon fell 7 percent. Bonds surged toward their biggest monthly gain in nearly three years as investors moved to safer assets.

Tech firms hit by weak earnings and growing AI bubble fears

Tech firms suffered steep losses after Amazon and Intel missed earnings expectations, and Alphabet reported soft revenue growth. Amazon fell over 7 percent, Intel dropped 23 percent, and Alphabet plunged more than 12 percent. Asian markets also fell, with SK hynix down nearly 9 percent and Samsung losing over 6 percent. Analysts say higher funding costs could slow the AI buildout.

Tech giants spending spooks investors as stocks slump and bonds rise

Tech shares slumped on Friday as investors worried that massive AI spending may not deliver sufficient returns. Alphabet fell 12.6 percent, wiping out $500 billion in market value. Intel plunged 23 percent and Amazon dropped 7 percent after their results showed they were burning through cash. The Federal Reserve keeping interest rates on hold also helped push investors into bonds.

Tech firms take fresh hit as disappointing earnings fan AI fears

Tech firms were hit by steep losses after Amazon and Intel reported weak results and Alphabet showed softer revenue growth. Amazon fell over 7 percent, Intel dropped 23 percent, and Alphabet plunged more than 12 percent. Asian chipmakers also suffered, with SK hynix and Kioxia both falling sharply. Bitcoin also tumbled around 5 percent after Binance reported a major hack.

Global Markets Mixed Amid Growing AI Investment Concerns

Global trading turned mixed as tech stocks sold off due to worries about AI investments. The S&P 500 fell 1.3 percent while the Nasdaq dropped 2.5 percent. Amazon fell 4.4 percent after reporting weak summer profits and spending $94.8 billion on AI technology. Intel plunged 28.8 percent despite strong quarterly profits. Bitcoin also fell toward $77,000 after a major hack at Binance.

Stocks Fall as AI Fears Hit Intel and Nasdaq

Wall Street dropped to its worst day since June as tech stock sell-offs deepened. The S&P 500 fell 1.8 percent and the Nasdaq fell 2.9 percent. Intel plunged 28.6 percent for its worst drop since 1974 after giving weak profit forecasts. Amazon fell 1.4 percent after reporting weak summer profits and $42.4 billion in cash burn from AI investments. Bitcoin fell below $77,000 following a major hack at Binance.

Thrive Holdings Buys Security Company ADT

Thrive Holdings, backed by OpenAI and Josh Kushner's Thrive Capital, acquired ADT for $10 per share or about $7.6 billion in equity. The deal adds ADT's home security business to Thrive's portfolio. ADT had about 6.1 million subscribers and roughly 4,000 customer care staff at the end of 2025. The companies plan to invest in new AI-powered security products but have not announced specific plans yet.

AI Investors Buying Established Businesses Like ADT

AI investors are increasingly buying entire businesses instead of just software. Thrive Holdings agreed to buy ADT for $15.3 billion including debt, adding 6.1 million subscribers. Long Lake, backed by General Catalyst, has completed 40 acquisitions in two and a half years. Lightspeed Venture Partners raised over $750 million for a fund to buy and upgrade established businesses. These buyers believe AI technology can improve services and boost profits quickly.

OpenAI CEO Sam Altman on DRAM and Data Centers

OpenAI CEO Sam Altman said it is better to concentrate the world's limited DRAM supply in data centers than spread across personal devices. He argued that data centers can use DRAM at much higher rates than individual computers. Altman also said OpenAI is designing its own custom AI processor called Jalapeno, being designed by AI for AI. He claimed the world has limited silicon capacity and AI should help create major efficiency gains.

Sam Altman Says People Should Not Run AI Models on Their Own Computers

OpenAI CEO Sam Altman argued that people running AI models at home on their own computers is a bad idea. He said using the cloud is better because it allows maximum use of limited hardware like dynamic RAM. His comments angered tech enthusiasts and PC gamers who believe owning computers is important. Altman made the remarks during a recent podcast appearance. The debate comes as AI chip supplies remain limited.

Chinese Company Uses AI and Laser to Kill Mosquitoes

A Chinese company called Photon Matrix built a $1,000 device that uses AI and a laser to track and kill mosquitoes in flight. The device uses self-driving car technology to find targets and AI to decide when to fire. During a demonstration it zapped many mosquitoes, burning off their wings. The company is based in Changzhou, about 100 miles northwest of Shanghai. Mosquitoes may still take hours or days to die after being hit.

Google Says AI Is Taking Revenue From Search but It Is Still Positive

Google says it is fine that AI is reducing revenue from its most profitable business, traditional search. Executives said AI Mode growth caused slower revenue growth because ads on AI earn less than regular search ads. Alphabet stock dropped 12%, losing nearly $500 billion in value. Google CEO Sundar Pichai called the shift an expansion opportunity and said AI helped drive the fastest search query growth in five years.

Baillie Gifford Discusses Growing Demand for AI Products

Peter Singlehurst, Head of Private Companies at Baillie Gifford, talked about the growing demand for AI products and benefits. He discussed tech valuations, Anthropic's potential IPO, long-term growth, and global private market opportunities. The remarks were part of a CNBC interview. Singlehurst highlighted strong interest in AI across private markets.

International Paper Invests in AI-Supported Smart Radios

International Paper led a $36 million funding round for smart radios company Relay. The radios use transcription and translation to help workers communicate better, especially in multilingual teams. They also capture conversation transcripts to preserve knowledge as workers retire. The devices run on multiple major cellular networks and can be used within or between sites. International Paper was introduced to Relay by Touchdown Ventures.

Scale AI accused of illegally tracking European workers

An NGO called Noyb filed five complaints against Scale AI, a U.S. company that trains AI for firms like OpenAI, Anthropic, Google, and Meta. The complaints say Scale AI used hidden trackers on worker devices to collect personal data every few seconds. Workers were also forced to submit face and ID videos through a company called Persona. The NGO wants an investigation into these alleged privacy violations.

Companies deploy AI agents but workers must verify outputs

Many companies are hiring AI agents to automate tasks and speed up decisions. However, employees often must spend hours checking and fixing the work these agents produce. Felix Van de Maele, CEO of a related company, said there is a gap between what AI promises and what companies actually experience. Eighty-seven percent of teams re-check whether the information their AI agents use is still accurate. This means AI sometimes creates more work instead of reducing it.

Zambia teams up with Huawei for government AI training

Zambia announced a partnership with Huawei on October 30, 2026, to train government officials in AI. The training starts on November 2, 2026, and covers topics like large language models, AI agents, and prompt engineering. Huawei will pay for the program and send AI experts from China to teach in person. The SMART Zambia Institute is organizing the event to help modernize public administration through technology.

Sources

• Tech firms take fresh hit as earnings misses fan AI fears
• Stocks Plunge as AI Spending Spurs Bond Rally, Investor Fears Rise
• Tech firms take fresh hit as earnings misses fan AI fears
• Stocks slump, bonds leap as AI giants' spending spooks investors
• Tech firms take fresh hit as disappointing earnings fan AI fears
• Global trading is mixed as worries about AI-related issues grow
• Stocks tumble as AI fears hammer Intel, Nasdaq
• OpenAI-backed Thrive Holdings acquires ADT
• Why AI Investors Are Buying ADT, Accountants and Call Centers
• OpenAI CEO Sam Altman says its “terrible to have everybody have a bunch of the world’s limited supply of DRAM” instead of shoving it all in datacentres
• Sam Altman Absolutely Hates the Idea of People Running Their Own AI Models at Home, Argues They Shouldn't Own Computers
• In China, the War on Mosquitoes Has Entered the A.I. Era
• Google is happy AI is cannibalizing its most profitable business
• Peter Singlehurst: We're seeing growing demand for AI products and benefits
• International Paper investing in AI-supported frontline communication tech
• The AI giant training tech rivals is accused of spying on European workers
• Companies Are Hiring AI Agents to Save Time. Who's Checking Their Work?
• Zambia Partners With Huawei for AI Training Programme for Government Officials