Moonshot trained an AI model for $4.6 million that beats OpenAI's GPT-5 on reasoning tests. While OpenAI seeks trillion-dollar infrastructure, Chinese labs prove the math no longer works. The twist: even they worry the tech works too well.
Seven families sue OpenAI, claiming ChatGPT drove four people to suicide after a May 2024 design change prioritized engagement over safety. The cases test whether AI chatbots qualify as products under liability law.
OpenAI's CFO floated a federal backstop for AI infrastructure, then reversed within hours after White House rejection. The whiplash exposed the core problem: OpenAI needs $1.4 trillion while generating $20 billion. The math doesn't work.
Wall Street's love affair with tech stocks turned sour this week. The market darlings known as the Magnificent Seven tumbled hard, with Tesla leading the descent at a 10% drop.
Nvidia, the AI chip champion, fell 7%, while Apple shed over $533 billion in market value - roughly equivalent to erasing a company the size of Tesla. The carnage spread beyond the tech titans.
Semiconductor stocks crumbled as investors digested Trump's harsh tariffs on chip-making hubs. Taiwan Semiconductor Manufacturing Co., the world's largest chip maker, plunged 10%. Even crypto felt the pain, with Bitcoin dropping below $78,000 - a stark reversal for the "first Bitcoin president's" signature achievement.
Trump remained unmoved by the market chaos. "Sometimes you have to take medicine to fix something," he told reporters, displaying the bedside manner of a medieval barber. Meanwhile, Wall Street veterans broke their silence. Bill Ackman warned of "economic nuclear winter," while JPMorgan's Jamie Dimon cautioned against America going it alone.
Corporate America scrambled to respond. Car companies halted shipments, trade groups warned of price hikes, and tech firms watched their AI dreams get more expensive by the day. The semiconductor industry, caught between U.S. demands and Asian manufacturing realities, faces particularly thorny decisions.
Global markets showed no signs of recovery Monday. European chip makers joined the slide, with ASML and STMicroelectronics dropping over 3%. In Asia, markets bled red as investors priced in a new era of trade barriers.
Trump's team keeps listening to concerns from financial executives, but the channels aren't as open as during his first term. Some analysts still hope for deals to reduce tariffs, while others argue this market correction was overdue.
Why this matters:
Marcus Schuler
Marcus Schuler
Seven families sue OpenAI, claiming ChatGPT drove four people to suicide after a May 2024 design change prioritized engagement over safety. The cases test whether AI chatbots qualify as products under liability law.
OpenAI's CFO floated a federal backstop for AI infrastructure, then reversed within hours after White House rejection. The whiplash exposed the core problem: OpenAI needs $1.4 trillion while generating $20 billion. The math doesn't work.
OpenAI's CFO suggested federal backing for AI infrastructure at WSJ conference, as company seeks taxpayer support for $1.4 trillion buildout against $13B revenue. The ask arrives amid circular tech deals and shutdown-era austerity.
China slashes data center power bills by half—but only for domestic chips. Trump blocks Nvidia's Blackwell exports. Two governments, two subsidy strategies, one question: who can afford their industrial policy longer?
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