Amazon invests in AI infrastructure while Tesla trains Optimus robots

The stock market experienced a significant selloff on February 5, pushing the Nasdaq to its lowest point since November. This "tech wreck" was largely driven by investor concerns over substantial AI spending by companies like Amazon, which plans to invest $150 billion in AI infrastructure over 15 years, and Alphabet's announced large AI expenditures. Bitcoin also saw a sharp 12% plunge, losing half its value in four months, amidst a weakening US job market with increased layoffs and fewer job openings.

Amidst rapid AI adoption, new security threats are emerging. Attackers are employing "living off the AI" techniques, exploiting AI assistants to steal data or cause harm without triggering traditional alerts. Security experts warn against rushing AI integration, highlighting risks like "Clawdbot," a malicious VS Code extension, and "DKnife," which can hijack routers. To counter this, Operant AI launched Agent Protector on February 6, a real-time platform designed to find, manage, and secure AI agents, which are quickly becoming a major security risk.

Companies are also advancing AI development and deployment. Elon Musk revealed plans for "Optimus Academy" to train Tesla's Optimus humanoid robots, aiming to build 10,000 to 30,000 units for "self-play in reality" combined with advanced simulation. Meanwhile, Relevance AI offers a no-code platform enabling operations teams to build and manage AI workforces, having raised over $37 million and seen 40,000 new agents created in January alone. CreateAI's CEO, Cheng Lu, emphasized that successful AI integration in video games requires real-world applications.

Globally, Qatar is striving to become a major AI hub, focusing on "AI sovereignty" by developing local talent and governance, with companies like Meta and Google attending Web Summit Qatar. Despite concerns about AI's disruptive potential, Wall Street executives worked to calm fears, asserting that the software selloff driven by AI worries would not spread to private credit. The Semiconductor Industry Association projects global chip sales could reach $1 trillion, fueled by increasing demand from AI data centers, with 2025 sales already growing to $791.7 billion.

Key Takeaways

  • Stock markets, including the Nasdaq, experienced a significant selloff on February 5, driven by concerns over large AI spending and a weakening US job market, with Bitcoin plunging 12%.
  • Amazon plans to invest $150 billion in AI infrastructure over 15 years, and Alphabet also announced substantial AI expenditures, contributing to investor concerns about AI's economic impact.
  • Operant AI launched Agent Protector on February 6, a real-time security platform to find, manage, and secure AI agents, addressing growing security risks.
  • Cyber attackers are exploiting AI systems through "living off the AI" techniques, using AI assistants to steal data or cause harm, prompting warnings from security experts against rapid AI adoption.
  • Tesla's Elon Musk plans "Optimus Academy" to train 10,000 to 30,000 Optimus humanoid robots using "self-play in reality" and advanced simulation.
  • Relevance AI's no-code platform allows teams to build and manage AI workforces, raising over $37 million and creating 40,000 new agents in January.
  • Qatar aims to achieve "AI sovereignty" by focusing on local talent and governance, attracting over 1,000 companies, including Meta and Google, to Web Summit Qatar.
  • Wall Street executives sought to reassure investors that the AI-driven software selloff would not spread to the private credit market.
  • The Semiconductor Industry Association predicts global chip sales could reach $1 trillion due to increased demand from AI data centers, with 2025 sales at $791.7 billion.
  • Security threats like "Clawdbot" and "DKnife" highlight the dangers of unsecured AI tools, emphasizing the need for robust security measures for routers and devices.

AI and Crypto Markets Face Deep Selloff

On Thursday, February 5, the stock market saw a major selloff, pushing the Nasdaq to its lowest point since November. This "tech wreck" was fueled by concerns over large AI spending by companies and a weakening US job market. Bitcoin also plunged 12%, its worst day in almost four years, losing half its value in four months. New job data showed more layoffs and fewer job openings, complicating the Federal Reserve's plans for interest rates. The US yield curve also became the steepest in four years, reflecting economic worries.

Tech Stocks and Crypto Plunge Amid AI Worries

On Thursday, February 5, a tech-driven stock market selloff hit the Nasdaq, bringing it to its lowest level since November. Concerns about companies' huge AI spending and the US job market deepened this downturn. Bitcoin also experienced a significant drop, falling 12% and losing half its value in just four months. New data showed a rise in layoffs and fewer job openings, creating challenges for the Federal Reserve's economic plans. The US yield curve also steepened, reaching its widest point in four years.

Operant AI Launches New Security for AI Agents

On February 6, Operant AI launched Agent Protector, a new real-time security platform. This platform helps businesses find, watch, manage, and secure AI agents, which are quickly becoming a big security risk. Operant AI CEO Vrajesh Bhavsar explained that AI agents are spreading faster than security teams can keep up. Agent Protector offers tools to detect rogue agents, discover hidden agents, and enforce security rules to protect sensitive data and systems. It aims to give security teams control and visibility to safely use AI.

Attackers Exploit AI Systems in New Cyber Threats

Cyber attackers are now using a new method called "living off the AI," which involves exploiting AI assistants and agents. This technique allows them to use a company's own AI tools to steal data or cause harm, often without triggering traditional security alerts. Attackers can trick AI into generating malware, access more data than intended, or even plant false information into AI memory. Companies are adopting AI faster than they can secure it, creating new risks. To protect against these threats, organizations should treat AI agents like highly privileged users and apply strict security measures.

AI Worries Cause Stock Market Software Selloff

This week, Wall Street saw a major selloff in software stocks as investors realized AI could disrupt many businesses. New tools from a San Francisco startup sparked this sudden change, causing the S&P 500 to turn negative for the year. Investors are concerned that AI might make some companies obsolete and are questioning the huge amounts of money being spent on AI. For example, Amazon plans to invest $150 billion in AI infrastructure over 15 years, and Alphabet also announced large AI spending. This shift shows that the initial excitement around AI is now mixed with real economic concerns.

Elon Musk Plans Optimus Academy for Robot Training

Elon Musk revealed plans for "Optimus Academy" to train Tesla's Optimus humanoid robots. He explained that while Optimus will use the same AI chips and principles as Tesla cars, robots cannot gather training data in the same way cars do. To overcome this, Tesla will build 10,000 to 30,000 Optimus robots for "self-play in reality" within the academy. They will also use advanced simulation for training. This unique approach combines real-world practice with virtual learning to teach the robots new skills.

Qatar Seeks AI Control with Local Talent Focus

Qatar is working to become a major AI hub while keeping control over its data, infrastructure, and AI models. This week, at Web Summit Qatar 2026, over 1,000 companies, including Meta and Google, attended. Qatar emphasized "AI sovereignty" by focusing on local talent and governance. Namek Zu'bi of Silicon Badia noted the importance of homegrown talent and an Arab-majority AI services company for the region. Chip research firm Imec also showed interest, partly due to easier immigration policies in Qatar compared to the US. However, Qatar still relies on foreign chips and models for its AI goals.

Wall Street Calms Fears Over AI Impact on Credit

On Thursday, Wall Street executives worked to ease investor worries about AI's effect on software stocks and the private credit market. Leaders from Apollo Global Management, Ares Management, and KKR & Co. stated that the recent software sell-off, driven by AI concerns, would not spread to private credit. Apollo CEO Marc Rowan assured investors they had analyzed AI's potential impact. Despite the Nasdaq Composite Index falling sharply due to fears of AI automating jobs, private credit firms emphasized their strong due diligence and healthy portfolio companies. However, some analysts remain cautious about AI's fast development.

Relevance AI Helps Teams Build AI Workforces Without Code

Relevance AI offers a new platform that lets operations teams create and manage entire AI workforces without needing to write code. Unlike single-purpose AI tools, this visual, no-code platform allows experts to build and connect multiple AI agents across different departments like sales and marketing. Companies such as Canva, KPMG, and Autodesk already use it, with 40,000 new agents created in January alone. Founded in 2020 by Daniel Vassilev, Jacky Koh, and Daniel Palmer, Relevance AI has raised over $37 million to help businesses deploy collaborative AI teams efficiently.

Security Experts Warn Against Rushing AI Adoption

On Thursday, February 5, security experts warned against quickly adopting new AI tools without proper security checks. They highlighted "Clawdbot," a malicious VS Code extension that installs a trojan, as a major risk. This tool tricks users into giving up private information like logins and passwords to unsecured AI engines. Experts also mentioned "DKnife," a threat that can take over routers and edge devices to spy on users and steal data. They advise hardening router security, auditing devices, and using strong authentication to protect against these growing AI-related threats.

CreateAI CEO Discusses AI in Video Games

Cheng Lu, the CEO of CreateAI, recently discussed the company's efforts to integrate AI into video game creation. He explained that simply investing in AI is not enough. For AI investments to be successful, they must be combined with real-world applications. This approach ensures that AI truly enhances the competitive video game landscape.

Chip Sales May Reach $1 Trillion Due to AI Growth

The Semiconductor Industry Association predicts that global chip sales could reach $1 trillion as AI data centers increase their demand. In 2025, semiconductor sales already grew by 25.6% to $791.7 billion, driven by the need for advanced computing and memory for AI infrastructure. While demand for high-end processors and memory is strong, the SIA warns that future market visibility is unclear beyond next year. There is also a risk of overbuilding capacity if AI adoption slows, which could lead to a surplus of chips.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

AI AI Agents AI Security Cybersecurity AI Investment Stock Market Crypto Markets Economic Concerns Robotics Humanoid Robots AI Chips Semiconductor Industry AI Infrastructure AI Governance AI Hubs No-Code AI AI Workforces AI in Video Games Data Protection Cyber Threats Market Volatility Tech Stocks Job Market Private Credit Simulation Local Talent AI Sovereignty AI Disruption AI Adoption

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