Technology News and Headlines

AI Torches Software Stocks, Even as Investors Fret About All that AI Factory Spending

AI enthusiasm has turned into a market shock, sending shares of SaaS giants like ServiceNow, Salesforce and Palantir sharply lower. At the same time, investors are uneasy about the soaring capital‑expenditure plans of AI‑heavy firms such as Alphabet, Amazon, Oracle and Microsoft, even after strong earnings. Despite the sell‑off, AI‑focused startups and chipmakers continue to attract massive funding, betting on alternatives to Nvidia’s GPUs. The industry is also testing new revenue models, from OpenAI’s ad experiments to Waymo’s $16 billion fundraising push.