After Wall Street's worst day in months, are investors right to worry that Big Tech is overspending on AI?
On Oct. 30, 2026, U.S. stocks had their worst day since June as investors questioned the returns on Big Tech's massive AI spending, with the Nasdaq sinking nearly 3% amid weak reactions to Intel and other tech earnings.
None of the answers are what I would consider to be, "correct". I don't think this platform is all that useful for actual serious matters unfortunately. As a tool LLMs are very valuable. The most likely outcome is that one large company will end up "owning" the profitable part of this space. This is how the rise of the internet played out with Google owning advertising ie the thing that made money. Or the rise of social media with Facebook owning the profitable part of that. Everyone else will go out of business and be about as memorable in the future as DEC,, Alta Vista, and Friendster. So the logical thing to do if you are OpenAI, Anthropic, Microsoft, Google, etc. Take out every loan you can build build build. Everyone but the eventual winner will lose EVERYTHING. So the vast bulk of that investment will indeed be lost. There's still unlit fiber in silicon Valley from the 2001 crash and most of the players from then are gone. Google though made trillions
Worry? Yes. Change course? I don't think so. There's great risk in choosing the winners and losers but collectively I think the bets are warranted.