Data centre backlash: Which AI companies have been affected by US midterm results?
OpenAI has gone on a charm offensive, while semiconductor companies worldwide have seen their stocks plunge.
The United States midterm elections saw the Democrats gain control of Congress and key state governorships in Texas, Georgia, and Ohio, with strong opposition to artificial intelligence infrastructure development. Senate candidate Bernie Sanders called for a moratorium on data center construction, which caused concern among tech investors. Tech companies have experienced a significant drop in stock prices due to these midterm results, with OpenAI, Meta, Nvidia, and other companies affected.
OpenAI announced new commitments to responsible AI infrastructure and a policy blueprint for future campuses, but it is unclear what will happen to the company's existing data center infrastructure held by partners like Oracle. Meta, which had pledged $1 billion to build a massive data center in Ohio, saw its stock price fall as its president, Dina Powell McCormick, admitted that the midterm results would make it harder for companies to build data centers.
She emphasized the need for better communication on AI's benefits and said the industry has not done enough to explain them.
Elon Musk, who invested $474 million in Republican candidates, has been one of the biggest losers in the tech market. He has been building his AI-native data centers in Memphis and has suggested building data centers in space. Musk's SpaceX and Tesla stocks dropped almost 4% and 2%, respectively, following the midterm elections.
Semiconductor companies, including Nvidia, Infineon, ASML, and Taiwan Semiconductor Manufacturing Company (TSMC) also saw significant drops in their shares due to the midterm results. Nvidia's shares fell 9%, resulting in founder Jensen Huang losing his position on Bloomberg's Billionaires Index. ASML, which manufactures advanced chip-making machines, saw its shares drop by 6%.
TSMC, the world's leading chip maker, experienced a 10% dip in its shares. While companies may pay more attention to marketing and energy costs for data centers, any adverse changes to ongoing construction or approved projects are unlikely according to an expert.
Written by urgent.news from Euronews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
