Amazon, Meta, Google and Microsoft’s ‘AI problem’ reaches China as two biggest Chinese technology companies lose $66 billion in less than a day
It seems investors’ anxiety about the rise in capital expenditure of companies to fuel their artificial intelligence (AI) infrastructure and strategy has reached China as well. In the past few months, some of America’s biggest technology companies including Amazon, Meta, Google and Microsoft have seen billions wiped out from their market value after they announced an increase in capital expenditure. In a similar case, if not exactly the same, two of China’s biggest technology companies — Alibaba and Tencent — lost $66 billion of value in roughly 24 hours, after the market punished the two companies for failing to lay out clear visions for how to profit off artificial intelligence. Tencent is China’s most-valuable company.
