from Facebook parent Meta spooked investors across the sector, a sign that Wall Street’s willingness to embrace artificial intelligence may not match the seemingly boundless enthusiasm of Silicon Valley.slower growth and big spending on AI moving forward, as there isn’t a clear path for how the technology would become a money-maker for the firm, which almost exclusively makes its money through ads.
The downturn sparked a wider selloff of major tech stocks, including Google parent Alphabet, Microsoft and Amazon, which all fell between 2% and 3% during premarket hours. Social media firms Snap and Pinterest also fell between 4% and 5%, with recently-floated Reddit suffering a less dramatic slip of around 1%.
Chip maker Nvidia, which makes hardware vital for building AI systems and saw its value soar earlier this year amid the technology’s boom, initially fell around 2% during premarket trading but had largely recovered as markets approached opening. Apple and Tesla were generally spared by the broader downturn, with software maker Palantir and hardware maker Dell also falling between 2% and 3%.Meta, like many tech companies, has moved swiftly to embrace what has become Silicon Valley’s latest gold rush: generative AI.
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