Techin' Geek

A challenging week for technology stocks could indicate a decrease in investor trust regarding artificial intelligence.

According to the Wall Street Journal, the Nasdaq Composite Index experienced a 3% drop — marking its most difficult week since President Donald Trump revealed his extensive tariff strategy in April.

Tech firms that have seen strong performance throughout the year faced significant setbacks, with Palantir’s share price plunging 11% this week, Oracle falling by 9%, and Nvidia experiencing a 7% decline. These losses followed earnings reports from Meta and Microsoft, which suggested they would be maintaining substantial investments in AI (both firms saw a decrease of approximately 4%). 

“Valuations are high,” stated Cresset Capital’s Jack Ablin to the WSJ. “Even minor negative news is amplified … while positive news isn’t sufficient to create movement because expectations have already been elevated.”

Factors like the persistent government shutdown, decreasing consumer confidence, and extensive layoffs are likely contributing to the downturn in the stock market. However, the less tech-focused S&P 500 and Dow Jones Industrial Average fared better, with declines of 1.6% and 1.2%, respectively.

If you tuned in to the conclusion of the new Apple TV series “Pluribus,” you might have caught a distinctive disclaimer in the credits: “This show was created by humans.”

That concise statement — placed immediately following a note that “animal wranglers were present on set to ensure animal safety” — could set a precedent for other filmmakers aiming to emphasize that their creations were produced without generative AI.

And just in case the disclaimer lacked sufficient clarity, creator Vince Gilligan (renowned for “Breaking Bad”) was even more forthright in a Variety spotlight on the show, asserting unwaveringly, “I hate AI.”

He continued by characterizing the technology as “the world’s priciest and most energy-consuming plagiarism machine” and likened AI-produced content to “a cow ruminating — a perpetually regurgitated cycle of absurdity.”

“Thank you, Silicon Valley!” he exclaimed. “Once again, you’ve messed up the world.”

“Pluribus” marks the former “X-Files” writer’s return to the realm of science fiction, reuniting him with his “Better Call Saul” lead Rhea Seehorn, who portrays a romantasy novelist who faces an apparently extraterrestrial menace.

A recent communiqué from OpenAI discloses further information on how the organization hopes the federal government can bolster its ambitious objectives for data center development.

The letter — authored by OpenAI’s chief global affairs officer Chris Lehane and directed to the White House’s director of science and technology policy Michael Kratsios — contended that the government ought to contemplate widening the Advanced Manufacturing Investment Credit (AMIC) to include electrical grid elements, AI servers, and AI data centers in addition to semiconductor manufacturing.

The AMIC is a 35% tax incentive that was part of the Biden administration’s Chips Act.

“Expanding the scope of the AMIC will reduce the effective capital costs, mitigate risks associated with early investments, and unleash private financing to help resolve bottlenecks and speed up the AI infrastructure development in the US,” Lehane stated.

OpenAI’s letter further requested the government to expedite the permitting and environmental review processes for these initiatives, and to establish a strategic reserve of essential raw materials — such as copper, aluminum, and refined rare earth elements — required to construct AI infrastructure.

The firm initially released its letter on October 27, but it garnered little media coverage until this week, when remarks from OpenAI executives sparked wider conversations regarding the company’s expectations from the Trump administration.

During a Wall Street Journal event on Wednesday, CFO Sarah Friar mentioned that the government should “backstop” OpenAI’s infrastructure loans, although she later clarified on LinkedIn that she misspoke: “OpenAI is not pursuing a government backstop for our infrastructure obligations. I mistakenly used the term ‘backstop,’ which obscured the point.”

CEO Sam Altman also chimed in, stating that OpenAI does not “hold or desire government assurances for OpenAI data centers.”

“We assert that governments should refrain from choosing winners or losers, and taxpayers should not rescue companies that make poor business choices or fail in the market,” he articulated, although he noted that the company had discussed loan guarantees “as part of facilitating the establishment of semiconductor fabs in the US.”

In the same message, Altman expressed that the company anticipates concluding 2025 “over $20 billion in annualized revenue run rate and expanding to hundreds of billion by 2030,” and he indicated that OpenAI has undertaken $1.4 trillion in capital commitments for the upcoming eight years.