Investors No Longer Cheering on AI Spending -- Market Talk

1144 GMT - Investors are no longer encouraged by big spending on artificial intelligence, as fears over frontier labs and higher interest rates weigh on the AI boom, Amati Global Investors' Moikhail Zverev says. "The market sort of flipped. AI spending is now bad news, not good news." Shares in Alphabet and Amazon have both suffered this week after the companies committed to huge spending on AI. As well as fears over the impact of higher borrowing costs, investors worry about competition from open-source models and Chinese labs to OpenAI and Anthropic, Zverev says. "I'm not sure frontier labs have that sustained advantage, and therefore I'm not sure that the capex bubble feeding that monster is sustainable." Amazon shares fall 6.5% premarket, while Alphabet shares nudge 0.75% lower after dropping 13% Thursday.(josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

October 30, 2026 07:44 ET (11:44 GMT)