It really is a damned if you do, damned if you don't.
Google had to join the field and come up with their own AI model, hoping to outlast competition. Was it really necessary though?
Apple fumbled the AI chase, then made a seemingly wise decision to onboard functionalities from external companies and they do not seem to be suffering too much.
It likely is a case hubris, everyone wants a slice of the AI bubble's money and once they put money in, they can only keep digging themselves deeper into the hole.
Tesla Plunges 14.5% Post-Earnings: Can AI Spending Burn Rate Be Sustained?
Tesla tumbled 14.52% after reporting Q2 operating margins collapsing to 1.4% and free cash flow turning negative, as capital floods into AI and Robotaxi initiatives. Management frames the pivot as a long-term bet, but Wall Street questions whether core automotive profitability is being systematically diluted. With Alphabet reporting massive capex the same day, the "heavy investment, slow returns" narrative across mega-cap tech faces mounting pressure. With valuation still anchored to AI rather than autos, is this selloff a risk reset or a trend reversal?
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