Just one week after hitting fresh all-time highs, U.S. stocks are showing signs of strain as investors begin to fret about returns on the trillions of dollars that have been put into AI.
\n\nFor U.S. consumers, it could mean a shakier economy moving forward.
\n\nAs of Thursday morning, the S&P 500 was off more than 1% from its week-ago record, while the tech-heavy Nasdaq had fallen about 4% below its peak last week.
\n\nDriving the declines: Quarterly revenue growth at Anthropic has slowed, the Financial Times reported Wednesday. The AI giant is expected to be worth more than $1 trillion when it goes public, and at nearly $17 billion, its revenue is still massive and the company said it is profitable.
\n\nThere are also rising concerns about whether China-based memory technology companies could undermine, or even overtake, their Western rivals. And even though the AI data center buildout has created a global shortage of processing chips, there are fears that Chinese mass production of memory chips could flood the market with an oversupply.
\n\nMeanwhile, investors have begun selling off the bonds backing some data centers, primarily over fears that AI revenues won’t be sufficient to cover the massive sums that…
Original source: https://www.nbcnews.com/business