Tesla Posts Gains While Nvidia Powers AI Education

U.S. stock markets experienced a volatile period, with AI-related stocks facing significant pressure. The Nasdaq Composite, which saw a nearly 3% drop last week—its worst performance since March—showed choppy trading on Monday, December 15, 2025. While mega-cap tech companies like Tesla and Nvidia posted gains, concerns about AI stock valuations persisted. The S&P 500 turned negative, and the Dow slipped as selling continued in major AI stocks, with some trading at over 100 times earnings. Wall Street is increasingly demanding tangible revenue and disciplined spending from AI companies, moving past mere future promises. Oracle and Broadcom, for instance, faced declines due to disappointing outlooks and questions about returns on AI spending. Investors are closely watching upcoming inflation data and Federal Reserve commentary for further market direction. In contrast, Google's parent company, Alphabet, is being recognized for its efficient spending compared to competitors like Meta, as investors await clear financial returns from companies including OpenAI. Amazon recently integrated "Ask this Book," a new generative AI feature, into its iOS Kindle app, allowing users to ask questions about the text. This tool, which will expand to Android and Kindle devices next year, is always on, sparking debate about content control as authors and publishers reportedly had no opt-out option. Meanwhile, Arizona State University and will.i.am are collaborating on an undergraduate course called "Agentic Self," where students build personal AI systems using dedicated NVIDIA GPUs, focusing on data control and product development. AI is transforming various sectors, from holiday shopping with tools like Amazon's Rufus and Google's AI Mode offering recommendations, to city operations in Pasadena, where staff will use AI for tasks like document drafting and cybersecurity under strict human oversight. Funding continues to flow into diverse AI ventures; General Intelligence secured $8.7 million for AI agents, Crisp raised $26 million for retail data intelligence, Serval achieved a $1 billion valuation with $75 million, and Luma AI received $140 million for real-time image and video generation. Mastercard also projects AI will significantly boost the Asia-Pacific economy in 2026. Despite the widespread adoption and investment, prominent investor Michael Burry, known for "The Big Short," has issued a strong warning about the AI sector. He characterizes the AI market, particularly Nvidia, as the "biggest bubble of them all," suggesting it could burst unpredictably. Burry highlights Nvidia's high valuation and central role as a potential indicator of a coming collapse, urging investors to be cautious about the speculative nature and inherent risks of highly hyped sectors.

Key Takeaways

• U.S. stock markets experienced volatility, with the Nasdaq Composite dropping nearly 3% last week, though Tesla and Nvidia saw gains on December 15, 2025.
• Wall Street is shifting focus, demanding actual revenue and disciplined spending from AI companies, scrutinizing firms like Oracle and Broadcom.
• Amazon launched "Ask this Book," a generative AI feature for its iOS Kindle app, which is always on and will expand to Android and Kindle devices next year.
• Arizona State University and will.i.am are developing an "Agentic Self" AI course, where students use NVIDIA GPUs to build personal AI systems.
• Google's parent company, Alphabet, is praised for efficient AI spending compared to competitors like Meta, as investors seek clear financial returns from OpenAI.
• AI is influencing holiday shopping with recommendation tools from Amazon (Rufus), Google (AI Mode), Walmart, and Target, while also improving accessibility.
• Mastercard predicts AI will significantly boost the Asia-Pacific economy in 2026, with strong adoption in Hong Kong, India, Japan, and South Korea.
• AI funding remains robust, with General Intelligence raising $8.7 million, Crisp securing $26 million, Serval valued at $1 billion after raising $75 million, and Luma AI raising $140 million.
• Pasadena city staff will implement AI pilot programs for operations like document drafting and cybersecurity, ensuring strict human oversight and no personal resident data use.
• Investor Michael Burry warns the AI market, particularly Nvidia, is the "biggest bubble of them all" and could burst unpredictably due to high valuations.

Stocks find relief after AI selloff, Fed meeting ahead

U.S. stock and bond markets saw a small recovery on Monday, December 15, after a tough week for AI-related stocks. The Nasdaq Composite had dropped nearly 3% last week, its worst performance since March. Investors are now closely watching the Federal Reserve's policy meeting this week for clues on interest rates and inflation. European and Asian markets were mixed or lower, while oil and gold prices remained stable.

Nasdaq tech stocks rebound amid AI bubble worries

On Monday, December 15, 2025, the Nasdaq Composite saw choppy trading as tech stocks tried to rebound after recent AI-driven selloffs. Mega-cap tech companies like Tesla and Nvidia saw gains, but concerns about AI stock valuations and disappointing news from Oracle and Broadcom kept the market uncertain. The 10-year Treasury yield eased slightly, offering some relief to tech shares. Investors are also watching for key economic data this week, as a broader market rotation away from AI leadership seems to be happening.

AI stock pressure causes S&P and Dow to fall

On Monday, the S&P 500 turned negative, and the Dow slipped 145 points as selling in major artificial intelligence stocks continued. The Nasdaq also fell 0.5%, extending the tech sector's struggles from last week. Companies like Broadcom and Oracle faced further declines due to disappointing outlooks and concerns about AI spending returns. Investors are questioning high valuations for AI stocks, with some trading at over 100 times earnings. This week brings critical inflation data and Federal Reserve commentary, which could further impact the market.

Amazon Kindle app adds Ask this Book AI feature

Amazon recently launched "Ask this Book," a new AI feature built into the Kindle app. This tool lets users ask questions about the book they are reading, with the AI providing answers. Currently available on the iOS Kindle app for thousands of English books, it will come to Android and Kindle devices next year. Amazon states the feature is always on, and users, publishers, or authors cannot opt out. This has raised concerns among some about control over content and data usage.

Amazon adds AI chatbot Ask this Book to Kindle

Amazon introduced "Ask this Book," a new generative AI feature for Kindle readers. This chatbot lives inside e-books and can answer questions about the text, helping readers understand characters or plot points. It is currently available on the iOS Kindle app and will come to Android and Kindle devices next year. Amazon confirmed that the feature is always on, and authors or publishers cannot opt out, which has sparked debate about content control and potential derivative works. Many authors and publishers were reportedly unaware of this new feature before its announcement.

ASU and will.i.am create new AI course

Arizona State University and will.i.am are working together to create a new undergraduate course called "Agentic Self." This course, designed by Dr. Sean Hobson, teaches students about artificial intelligence by having them build their own personal AI systems. Students will use dedicated NVIDIA GPUs to ensure they control their data and creations. The curriculum centers around developing a new product called EDU.FYI, where students will learn all stages of product development. The course aims to be an open-ended, collaborative experience for students in Los Angeles and Arizona, with plans for online expansion.

Wall Street seeks real profits from AI companies

Wall Street's excitement for AI stocks has cooled, and investors now demand actual revenue and disciplined spending instead of just future promises. Experts like Alexis Maubourguet say companies need to prove AI can create profitable products or save money. Oracle, for example, faces scrutiny over its future revenue obligations, especially after reports of OpenAI data center delays. Google's parent company, Alphabet, is being praised for its efficient spending compared to competitors like Meta. Investors are now waiting for AI companies, including OpenAI, to demonstrate clear financial returns and profitability.

AI transforms holiday shopping for better or worse

Artificial intelligence is changing how people shop for holiday gifts, with tools like ChatGPT, Amazon's Rufus, and Google's AI Mode offering product recommendations. Walmart and Target also provide AI-driven gift suggestions from their websites. While AI can save time and money, some argue it removes the personal touch and human effort from gift-giving. AI recommendations rely on data, not individual tastes, which may not always lead to high-quality suggestions. However, these AI tools also offer significant benefits, such as improved accessibility features for visually impaired shoppers and those with cognitive disabilities.

Mastercard sees AI boosting Asia Pacific economy in 2026

Mastercard predicts that artificial intelligence will significantly boost the Asia-Pacific region's economy in 2026. The company's annual outlook, published by the Mastercard Economics Institute, projects stable growth for APAC despite global trade changes. David Mann, Mastercard's chief economist for Asia Pacific, highlighted improving microeconomic conditions and strong AI adoption in places like Hong Kong, India, Japan, and South Korea. Travel also remains a key economic driver for the region. While AI offers major growth opportunities, Mastercard notes that benefits will be uneven, and geopolitical tensions could create challenges.

AI funding supports diverse companies and innovations

AI funding is now supporting a wide range of companies, from one-person startups to generative media. General Intelligence, for example, raised $8.7 million to develop AI agents that can manage large parts of a company, aiming for the first fully autonomous business by mid-2026. Other companies also received significant investments, including Crisp, which secured $26 million for retail data intelligence, and Serval, an enterprise automation startup valued at $1 billion after raising $75 million. Additionally, Luma AI raised $140 million to advance real-time image and video generation, showing strong investment across the AI industry.

Michael Burry warns AI bubble is unpredictable

Famous investor Michael Burry, known for "The Big Short," has voiced strong concerns about the artificial intelligence sector, particularly Nvidia. Burry believes the AI market is the "biggest bubble of them all" and could burst unpredictably at any time. He points to Nvidia's high valuation and central role in the AI boom as a potential sign of a coming collapse. While acknowledging AI's potential, Burry warns investors about the speculative nature and inherent risks of highly hyped sectors. His cautionary message suggests that even promising technologies can face significant market volatility.

Pasadena city staff to use AI with strict oversight

Pasadena city staff will present plans to use artificial intelligence in limited ways to improve city operations. These pilot programs aim to reduce staff workload, enhance cybersecurity, and filter public submissions, all while maintaining strict human oversight. AI tools will act in an advisory role, requiring staff review before any content is finalized. The city will use AI for tasks like document drafting, ensuring accessibility, screening online forms, and powering adaptive firewalls. Pasadena emphasizes that no personal resident data will be used, and all AI applications will follow a strong governance framework focused on privacy, trust, and human control.

Sources

• Morning Bid: Stocks catch a break after bruising AI selloff
• Nasdaq Today: Tech Rebounds in Choppy Trade as AI Bubble Fears Meet a Data-Packed Week (Dec. 15, 2025)
• US midday market brief: S&P falters, Dow slips 145 points amid AI pressure
• The Kindle App Now Has Built-In AI, Because of Course It Does
• With New ‘Ask this Book’ Kindle Feature, Amazon Wants Lost Readers to Ask AI for Help
• ASU and will.i.am co-design agentic AI course for higher education | ETIH EdTech News
• What Wall Street needs to regain its AI confidence
• AI Is Completely Changing Holiday Shopping - Here's How
• Mastercard Predicts AI Will Be ‘Meaningful’ Tailwind in APAC for 2026
• From One-Person Companies to Generative Media, AI Funding Spans the Stack
• Investor Michael Burry Criticizes Nvidia, Warns Of Unpredictable AI Bubble Burst, Says 'There Is No Way To Time Or Predict'
• City Staff to Detail Limited Artificial Intelligence Pilots for City Operations, Stresses Staff Oversight and Data Safeguards