AI industry’s week from hell |
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| Illustration: Sarah Grillo/Axios. Stock: Getty Images |
| A week of political upheaval, financial turmoil and salacious scandal delivered one final indignity to the AI industry yesterday, as Anthropic’s staggering IPO target fell short of expectations, Axios’ Zachary Basu and Ben Berkowitz write. Why it matters: The bubble is wobbling. Investors, businesses and governments need a spectacular success from Anthropic to stave off a crisis of confidence that could tear through the broader economy . Zoom in: Anthropic announced plans yesterday to raise as much as $64.4 billion in one of the largest IPOs in history, targeting a valuation of up to $1.4 trillion.That’s roughly $600 billion below what investors envisioned just months ago. Data: S&P Capital IQ Pro. Chart: Erin Davis/AxiosZoom out: Anthropic’s valuation reset caps a punishing stretch of new challenges that began with last week’s stunning midterm results A blue wave of AI-skeptical Democrats will arrive in Congress armed with subpoena power and an appetite for investigating the industry’s safety failures and vast political influence Nvidia CEO Jensen Huang, the central cog in AI’s global gears, was swept up in an espionage scandal after admitting to an affair with a suspected Chinese spy. His board, the FBI and Congress are investigating. Nvidia has shed more than $1 trillion in market value since the first revelation Wall Street went into a tailspin as investors reckoned with the implications of the Democratic sweep — including in data-center havens like Texas — for AI’s sprawling infrastructure ambitions. The Nasdaq lost $2.5 trillion in market value Thursday before staging a sharp rebound.Keep reading. |
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AI industry’s week from hell
Zoom in: Anthropic
Data:
A blue wave of AI-skeptical Democrats will arrive in Congress armed with subpoena power and an appetite for investigating the industry’s safety failures and vast political influence
Nvidia CEO Jensen Huang, the central cog in AI’s global gears, was swept up in an espionage scandal after
Wall Street went into a tailspin as investors reckoned with the implications of the Democratic sweep — including in data-center havens like Texas — for AI’s sprawling infrastructure ambitions. The Nasdaq lost $2.5 trillion in market value Thursday before staging a sharp rebound.