r/technology • u/Broadband- • 9h ago
Artificial Intelligence Nasdaq sinks more than 2% as investors raise questions about AI debt
https://www.cnn.com/2026/10/16/investing/tech-stocks-ai-coreweave710
u/skccsk 9h ago
Nvidia CEO Jensen Huang stepped in to assuage concerns on Thursday, telling Bloomberg that he’s optimistic about CoreWeave, an endorsement that helped the company’s stock rally on Thursday. But it was short-lived: The stock dropped almost 12% on Friday.
We used to have a term for people who used overbearing displays of confidence to fraudulently manipulate people out of their money, but I forget what it was.
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u/LA-Aron 9h ago
This era was built on Enron.
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u/Ballders 9h ago
We're in for such a freaking ride. They've already invoked National Security. If you think our tax dollars are going to go anywhere but directly into these tech-bros hands you are nuts.
Everyone acting like they don't have the customer base, oh, they've got us captured because every dollar we get taxed is going towards that, and not helping citizens.
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u/za72 8h ago
I'm already broke from the last recession
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u/Guthix_Wraith 8h ago
I've literally picked up hunting because I can't afford meat anymore
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u/za72 8h ago
roadkill... it's what's for dinner... gather round kids
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u/BingleFlip94 8h ago
Random story but I grew up in rural Georgia, and my dad and I were driving down the road when we came across a rattlesnake that had to be at least 5 feet long. My dad stopped the truck, grabbed his snake-killing stick, popped it on the head and threw it in the bed of the truck.
He wanted the skin, but I really wanted to know what rattlesnake tasted like so he fried it up for us. It tastes like a very light white fish if you’re wondering lol. When my mom got home she freaked the fuck out when I told her. Dad wanted it to be our little secret but 7 year old me didn’t understand the concept of a secret lol.
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u/CryptoTipToe71 4h ago
To me the funniest part of this story is having a stick dedicated to killing snakes. I live in the Midwest and can count on one hand the number of times I've seen wild snakes haha
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u/Guthix_Wraith 8h ago
You weren't by chance near rabun gap GA were you?
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u/BingleFlip94 7h ago
Waynesboro,GA actually!
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u/Guthix_Wraith 7h ago
Good bit farther south than I was but still cool to know other people lived like this lol
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u/raphired 8h ago
Ammo prices have entered the chat
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u/Guthix_Wraith 8h ago
Crossbow bolts. Tho I'm thinking I should have gotten a crossbow that wasn't a compound
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u/malianx 6h ago
Has it provided enough meat?
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u/Guthix_Wraith 5h ago
Hunting? So far I'm a failure. Trapping, more so. Most people wouldn't eat a coyote tho so it's really how willing you are.
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5h ago
[deleted]
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u/West-Abalone-171 5h ago
The fed will hand the specific techbros who are part of the in group half a trillion so they can buy out the rest as they fail.
This was always part of the plan:
You and I both agreed zero interest rates were too high, and as I said in your office. finding things on their way to collapse, was much easier than finding the next bargain.
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5h ago
[deleted]
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u/West-Abalone-171 5h ago
dario and altman aren't on the inner circle and will happily be thrown under the bus if there isn't enough to go around
The money will go to musk and thiel (maybe zuckerberg, and with a big share for the trump family) and won't be involved in servicing any debt, but instead buying the hardware from the companies going bankrupt.
This is explicitly the plan as documented many times in the epstein files and project 2025. Create a crisis. Use bailout and no-bid contract money to buy cheap during the crisis, repeat.
You also keep mistaking fascism for capitalism. There is no goal to make a profitable business. The point of the datacenters is surveillance and automated jackboots.
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u/robby_arctor 8h ago
Banker in Deutsche Auditorium:
Mr. Miller! Sorry. Quick question. From the time you guys started talking, Bear Stearns stock has fallen more than 38 percent. Would you buy more now?
Bruce Miller [unsure]:
Sure. Yeah. I'd buy more. Why not?
Mark Baum:
BOOM.
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u/fork_yuu 8h ago
Coreweave is fucking wild too. Shit dropped 50% in past 6 months, it might seriously take a bunch with it.
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u/Character-Medicine-6 3h ago
CoreWeave is just chip WeWork, there’s no tech, they borrow long for GPUs that they lend out short. If compute demand declines they are screwed.
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u/GayGeekInLeather 8h ago
I want this bubble to pop and just get it over with. And this time there should be no fucking bailouts. They wanted to gamble and this time the house is going to win
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u/Sleepy_Witch_Maple 6h ago
There's no way that Trump isn't going to do the biggest bailouts you've ever seen(with personal enrichment thrown in as well).
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u/Revolutionary_Egg961 6h ago
He won't be bailing anything out when republicans lose the house and the senate at midterms
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u/ballsonthewall 4h ago
if there are bailouts it might finally be the breaking point for the majority of Americans. I feel like the culture war is not working the same anymore and the biggest thing in the wind is class solidarity.
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u/Saucemanthegreat 1h ago
Man I’ve been hearing this shit for ten fuckin years. There’s no breaking point. There’s no inflection that can be passed. There’s no line in the sand. Some people will die for him and we have to understand that. More than you’d think.
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u/fulento42 5h ago
How could you say that? He only owns over 25% of our total debt in merely 6 years in power out of 250 years. /s
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u/rintzscar 5h ago
Not only is there going to be a bailout, but it's going to be the biggest of all time and Trump will try to make other countries pay for it.
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u/seasix732 8h ago
Small cap index down 11% in 2 months. A lot of damage hidden by the mag7 or whatever it is now.
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u/HolidayCards 9h ago
So you're saying recklessly betting with money in a giant scam tool built on IP theft, and selling access of that tool back to individuals affected by the theft as it displaces them from a job might be risky? Huh.
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u/Puglady25 7h ago
Don't forget, a lot of that money they are betting is borrowed, A lot of big plans that feel pretty risky given the interest rates.
I feel like the stock market is playing hot potato. Who will be left holding that 🥔?7
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u/charging_chinchilla 5h ago
perhaps, but a 2% single day drop says absolutely jack shit about any of that
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u/_chadwell_ 9h ago
“Scam tool”
Didn’t realize it was still 2023
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u/Olangotang 5h ago
Aww, I guess the bots weren't enough to keep your comment karma positive this time!
Only a couple more billy bro. AGI around the corner bro.
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u/Designer_Respect4285 8h ago
Oh no, not a two percent drop after a 300% rally. You're right, I'm in shambles.
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u/FreshPrinceOfRivia 9h ago
Anthropic IPO will be a shitshow
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u/seasix732 8h ago
I'd be surprised if it happens at this point.
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u/nigirizushi 8h ago
It has to. It'd be an even bigger shitshow if they don't
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u/HystericalSail 8h ago
Anthropic bros keep telling me it's not needed, they'll just do another round of private fund raising. And another. And another. They don't need to suckle at the 401k autoinvestment teat at all.
If they're wrong though, and Zitran is right? Look out below. It won't be a 30% correction, it'll be a 70% one.
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u/Olangotang 5h ago
The usual AI shills are doing their damage control in this thread, so it's probably really fucking bad for them.
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u/VeridionMarkets 7h ago
AI can be useful and still be overbuilt. What I’d like to see is a clear breakdown of revenue from paying customers, the cost of serving them, and when the debt comes due.
If adoption takes longer than expected—or competition drives prices down—who absorbs the loss? “AI is the future” doesn’t answer whether these investments can pay their bills.
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u/Toutatous 6h ago
I agree that LLMs are pretty useful for writing texts, making summaries and even translations (good for learning a new language).
AI, I don't really care, personally. Photos and videos created with AI are like cancer.
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u/GrandmaPoses 6h ago edited 3h ago
They’re awful at anything factual. When details matter, avoid LLM’s. They continually manufacture information when they can’t find it, they value having any response over admitting they don’t have the answer.
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u/Vistaer 6h ago
Whatever AI models let you basically use your own enterprises unused cpu cycles in your own colo/datacenter to keep the “compute” in-house will win out quite a bit.
And honestly I expect Amazon and Microsoft to reign supreme in a few years since they just have to sit back and let the Private Equity backed AI “specialist” groups burn their money and burn down all so they can vaccuum up the remains for pennies on the dollar since they’re these diversified conglomerates that can ride out the bubble. Windows Server 2029 will include cluster AI compute for Clippy AI which is nothing more than the remains of Claude, while Amazon AiWS is included as part of your Prime subscription that lets you use ChatGPT remains to make your terrible meme films.
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u/ShyteyCakes 6h ago
You can run qwen's light text model on just an old smartphone, and it's only going to get better
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u/Odd_Television_7824 5h ago
God Microsoft is so fucking painful though. Copilot, even with Anthropic and OpenAI models, is such a shit harness. Setting up permissions in azure is nightmarish, AI foundry sucks ass, it’s all so so painful to use.
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u/OGLikeablefellow 5h ago
It's too much of a moving target for it to actually be business ready mostly because it's going to be so transformative and dangerous it's a crapshoot on what actually happens and who wins
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u/vinyl1earthlink 5h ago
Well, nothing really bad will happen until some big company can't make a payment. That will be the signal - everybody will panic.
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u/copperblood 9h ago
Here comes the rug pull! 🤣
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u/youngpenrose 9h ago
Definitely feels like the Republicans are surely going to lose the midterms... Then quickly blame the market crash on Democrats.
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u/_Cybernaut_ 8h ago
Three TRILLION dollars already pissed down the toilet, and only NOW they have questions?????
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u/rintzscar 5h ago
Don't worry, the guys who have the questions now are the smarter ones. The dumber ones won't have questions until the bubble pops.
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u/HouseofMarg 1h ago
And even after the bubble pops it will take months of post-mortem soul searching for the bulk of them to learn that businesses they invest in should actually be profitable, not just “the future”
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u/E55Reefer 6h ago
Ah they all raised the same question at the same time at the same day. Makes sense.
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u/karatebullfightr 6h ago
Gee willikers!
Really?!
Firing all of your highly trained staff and replacing them with the stolen data fever dreams of some silcon valley nepo babies boondoggle was a bad idea?
Huh?
Fuck these useless cocked-out degenerate gamblers - just pissing hard working peoples pensions into the wind and double fuck the crooks in Washington for the bail out they will hand over no strings attached.
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u/CircumspectCapybara 9h ago edited 8h ago
Still up 13% since start of 2026 and 36% since start of 2025.
Time in the market beats timing the market.
And as the saying goes, the best time to buy was yesterday, the second best time is today. Not literally because it's down from yesterday, but statistically speaking, on any given day in history, if you had bought the day before and you were planning on holding long term, you would come out with a healthy profit.
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u/SubZeroSunExodus 9h ago
Yeah. If you lump sum yesterday. Not a good time. But if you were in over 15 months ago. You are alright.
For now.
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u/jupfold 9h ago
Also, 2% nothing out of the ordinary for a normal day to day swing.
Definitely on the larger side of the normal range, but nowhere near a crash and even “sinks” is a bit too much.
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u/sirkazuo 7h ago
Living through the start of the Great Recession it wasn’t like poof 30% loss in one day, it was just day after day after day of volatility going down and sometimes up by 2, 3, 4% with more of them being down than up.
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u/jupfold 7h ago
And your point being?
If you have definitive evidence that this 2% drop today is somehow guaranteed to become similar to the Great Recession, then I urge you to short the market with everything you’ve got.
Cheers.
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u/sounddude 7h ago
Conversely, if you have definitive evidence that this 2% drop is just a knee jerk reaction and that the AI trade isn't actually full of over leveraged debt in one big AI debt circle jerk, and that it's all built upon realistic future expectations, then I urge you to go long with everything you've got!
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u/sirkazuo 7h ago
And your point being?
That you can’t tell anything from one day’s results either way. 2% is normal when there’s no recession, and 2% is normal when there is a recession.
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u/topyTheorist 9h ago
I don't get the downvotes. Why are people here cheering for stocks going down? They hate their own pension?
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u/Gekokapowco 9h ago
more of a hope that investors will stop sabotaging our shared economy by being complete gullible morons and divesting from the 4-5 companies our whole market is suddenly built on top of
Telling them it was a stupid idea wasn't enough to convince them, maybe the consequences will
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u/topyTheorist 9h ago
You are free to invest in any company you want, as are other investors. It's free will.
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u/Gekokapowco 9h ago
GPU prices have nothing to do with my free will
gas prices from a random distraction war in Iran or war against Ukraine have nothing to do with MY free will
I have a voice and choice in the market with where I invest, but that doesn't do anything to dictate the state of the market, which I am completely subject to
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u/topyTheorist 8h ago
GPU prices are because other people choose to buy them and are willing to pay a lot. Free market.
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u/Designer_Respect4285 8h ago edited 8h ago
The top 4-5 companies are so valuable because they make a ton of money, not because investors are overly invested in them. They aren't trading at insane valuations.
Your downvotes mean nothing to me, I've seen what you upvote.
EG the financially illiterate reply to this comment.
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u/Gekokapowco 8h ago
oh really? Are the prices they're charging for compute offsetting the cost of data center construction and AI use or are they massively hemorrhaging money every prompt call and heavily subsidizing data center production with public and government resources?
I seem to have forgotten /s
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u/Designer_Respect4285 8h ago edited 8h ago
Anthropic and OpenAI aren't even publicly traded, and they aren't in the top 5 for biggest companies. Idk how you people can be this ignorant and this confident at the same time. The irony of you going around calling people morons when you're financially illiterate is wild.
The biggest companies by market cap are Nvidia, Apple, Google, Meta, and Amazon, all of which are massively profitable and aren't "massively hemorrhaging money on every prompt call..."
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u/Annual_Berry8043 9h ago
No, but if my portfolio has to take a hit to make a bunch of idiots broke and in the street so that a more caring generation can take over so be it. I have enough time to recover from the damage.
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u/NBAFAN9000 9h ago
They spend too much time on Burry’s substack and finally have something to cheer for
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u/SkyAnvi1 8h ago
The only way investors get a return on investment is if almost everyone has to pay the equivalent of a second cellphone bill to these ai companies.
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u/IcyProfession5657 7h ago
Too late, they are not long get the money back, bankcorrupcy starts now
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u/Puglady25 6h ago
How do you think bailouts for billionaires will go?
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u/IcyProfession5657 3h ago
Billionaires will bailed out, but not people money that they don't even know used for AI debt
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u/Pugsly007 53m ago
If they do yields will go up even more from the borrowed money. And then the US would own an unprofitable company?
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u/NinjaChore 8h ago
ai is going to make a handful of people rich, everyone else going to be holding the bag
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u/Zer0C00L321 9h ago
And so it begins.
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u/SubZeroSunExodus 9h ago
It’s been for a whole. But it’s more of a general decline with occasional ups. And some sectors already going to crap while others are just starting to sour.
It won’t be an equal cross sector uniform drop in one day and done. It’s the bottom.
Hell it could be in a declining state for over a year.
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u/Comfortable-Bug7202 7h ago
Market question ms itself as ai is billions in debt with no real profit streams to offset... y'all did it to yourselves lol
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u/IcyProfession5657 7h ago
Refinance or lose the previous debt, sorry should have thought before starting this game
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u/mirage01 6h ago
And those same investors will raise the index on Monday to get more stock at a discount.
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u/Blue_MaskingTape 5h ago
oh no the stock market moved how can i reframe the headline to push for my agenda!!
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u/redditrasberry 2h ago
don't worry, the actual plan is achieve "too big to fail" status so the the taxpayer (or rather, the national debt) wears actual liability for the debts
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u/Technical-Fly-6835 9h ago
Will this lower rates
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u/Original-Weekend-866 4h ago
Nope. It's an AI economy. They don't need to create jobs anymore... therefore no reason to "stimulate" the economy by lowering rates for the people. They don't need us so rates go up instead.
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u/Pugsly007 55m ago
It will if the downturn keeps going. Two things would lower rates today…. Raising taxes and or not letting AI companies borrow money.
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u/fluffymeowmeowkitty 7h ago
No investor questions anything…. Most investors have ai on their phone and desktop. Most investors want to know can we get the deeper dip so we can load the fuck up on Everything
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u/sdrawkcabineter 7h ago
Just bail them out so we can work towards the recovery, the corruption of it, and the next bubble.
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u/HotFartore 4h ago
Hey 👋 but AI is superintelligent, and a super money guzzler, and where're the trillions of dollars? Flying
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u/Broadband- 9h ago
For reference this week:
CoreWeave -25.21%
Nebius Group -25.15%
Intel -14.18%
Oracle -9.32%
NVidia -6.45%
Micron -5.63%