Axios: AI Industry’s week of hell

⚠️ AI industry’s week from hell
 
Illustration of a computer with an error message on fire and surrounded by flames
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.

A bar chart that ranks the 10 largest IPOs by total proceeds since 2000, without inflation adjustment. SpaceX leads at $86.3 billion, followed by Anthropic at $64.4 billion. The other offerings range from $29 billion to $16 billion.Data: S&P Capital IQ Pro. Chart: Erin Davis/Axios

Zoom 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.

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About michelleclarke2015

Life event that changes all: Horse riding accident in Zimbabwe in 1993, a fractured skull et al including bipolar anxiety, chronic fatigue …. co-morbidities (Nietzche 'He who has the reason why can deal with any how' details my health history from 1993 to date). 17th 2017 August operation for breast cancer (no indications just an appointment came from BreastCheck through the Post). Trinity College Dublin Business Economics and Social Studies (but no degree) 1997-2003; UCD 1997/1998 night classes) essays, projects, writings. Trinity Horizon Programme 1997/98 (Centre for Women Studies Trinity College Dublin/St. Patrick's Foundation (Professor McKeon) EU Horizon funded: research study of 15 women (I was one of this group and it became the cornerstone of my journey to now 2017) over 9 mth period diagnosed with depression and their reintegration into society, with special emphasis on work, arts, further education; Notes from time at Trinity Horizon Project 1997/98; Articles written for Irishhealth.com 2003/2004; St Patricks Foundation monthly lecture notes for a specific period in time; Selection of Poetry including poems written by people I know; Quotations 1998-2017; other writings mainly with theme of social justice under the heading Citizen Journalism Ireland. Letters written to friends about life in Zimbabwe; Family history including Michael Comyn KC, my grandfather, my grandmother's family, the O'Donnellan ffrench Blake-Forsters; Moral wrong: An acrimonious divorce but the real injustice was the Catholic Church granting an annulment – you can read it and make your own judgment, I have mine. Topics I have written about include annual Brain Awareness week, Mashonaland Irish Associataion in Zimbabwe, Suicide (a life sentence to those left behind); Nostalgia: Tara Hill, Co. Meath.
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