Tesla and Alphabet saw their market value drop by 14.5% and 7.1% respectively on Thursday, after both companies signaled massive increases in AI spending that worried investors about the mounting costs of the artificial intelligence boom. Tesla lost roughly $200 billion in market cap, while Alphabet saw approximately $300 billion wiped out. Both companies reported negative free cash flow in the second quarter and forecast record capital expenditures this year, fueling investor concerns about the profitability of the AI boom.
Source: Read the original article
