What just happened? Nvidia has once again broken the record for the largest one-day decline of market value in US history. After the release of the open-source R1 AI model by Chinese startup DeepSeek, which caused panic within the industry, Team Green's shares dropped 17%, resulting in its market cap falling by almost $600 billion.
"After years of pretending to be Democrats, Big Tech leaders are now pretending to be Republicans"
A hot potato: In a scathing critique of tech industry leaders, Epic Games founder and CEO Tim Sweeney has accused prominent executives of cozying up to President-elect Donald Trump in an attempt to influence anti-competitive policies. Sweeney's comments, shared on the social media platform X, highlight growing concerns about the relationship between big tech and the incoming administration.
As the world's largest company, Apple also leads in R&D spending
The big picture: The competitive strength of hardware makers is often gauged by their research and development expenditure. However, an analysis of recent financial reports from various tech giants reveals that higher R&D spending does not always guarantee success. Intel's recent struggles and Nvidia's astronomical growth driven by the AI boom have broken conventional assumptions.
If an AI bubble burst is coming, it isn't here yet
The big picture: Nvidia briefly overtook Apple as the world's most valuable company late last month, but this week it solidified that position for the second time in a more definitive way. The GPU maker's meteoric rise and the dethronement of Intel on the Dow Jones index signifies a major shift toward AI in the tech sector. However, uncertainty still surrounds the new technology.
A thirsty potato: According to private records obtained by the Financial Times through freedom of information requests, data center facilities in Virginia have experienced a significant increase in water consumption in recent years. The rise of generative AI could exacerbate this issue, potentially contributing to an environmental disaster in the making.