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Tesla and Google’s AI splurge sparks tech sell-off
['James Titcomb', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
Elon Musk's Tesla suffered one its of biggest ever share price drops - ReutersTechnology giants suffered a brutal sell-off on Thursday after heavy AI spending by Tesla and Google spooked investors.
Elon Musk's Tesla suffered one of its biggest ever share price drops, falling by more than 12pc after the company's profits were hit by investments in AI.
Google's parent company, Alphabet, dropped by almost 7pc after it burned through billions in cash to fund its own AI spending.
Investors have become nervous about heavy spending on AI as the technology is yet to generate reliable profits.
News of Google and Tesla's spending led to sell-offs at Amazon, Meta, Microsoft and Oracle, which are all making substantial AI investments.