{
  "id": 17546239,
  "title": "Her kan KI-festen begynne å sprekke",
  "url": "https://urgent.news/2026/11/01/her-kan-ki-festen-begynne-a-sprekke",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-01T06:20:49.000Z",
  "source": {
    "name": "E24 Norway",
    "slug": "e24-norway",
    "url": "https://e24.no/boers-og-finans/i/0B1m0A/her-kan-ki-festen-begynne-aa-sprekke"
  },
  "original_language": "en",
  "account": "AI excitement appears to be spreading, as investors cheer on as tech giants announce even more investments in artificial intelligence. Google parent company Alphabet experienced a significant drop in its stock price on Thursday, falling nearly 13 percent, worth around $500 billion in market value. The growth of Google's search engine, which also utilizes AI, has been slowing down as AI searches generate less revenue than traditional searches. The following Friday saw further unease, with Amazon and Intel reporting heavy spending on investments compared to revenue generated. The Nasdaq index dropped 2.9 percent, nearing an 8 percent decline from its peak. The situation may worsen in June when the Nasdaq is expected to fall close to 8 percent from its high. Stronger kroner against the dollar are also adding to the pressure on U.S.-exposed Norwegian fund investors. The skepticism isn't about AI technology itself but rather the uncertain earnings potential for the tech giants. Alphabet, Microsoft, Amazon, and Meta invested over $200 billion in the third quarter, according to Reuters, but are now spending more on investments than revenue generated. Despite making a lot of money, the rapid growth in AI investments is draining cash reserves and prompting tech giants to warn that they may overinvest. This is reminiscent of the railroad and internet booms of the 1800s and early 2000s, when excessive spending led to many companies going bankrupt. Now, data centers are being built at an unprecedented rate, often financed through debt. Smaller AI companies with large debts and uncertain revenues could face dire consequences, especially if interest rates remain high. CoreWeave is an example of a company that has borrowed heavily to build data centers, now paying around 15 percent interest on part of its debt. It suggests that revenue growth must be substantial to keep the books in the black. October also saw a surprise, with many non-technology stocks performing well despite tech stocks experiencing significant volatility. The tech market appears to be less dependent on a few American tech giants. Energy and financial stocks saw nearly 12 and 10 percent gains, respectively, while the traditional Dow Jones index was up 0.4 percent. Investors are exploring alternative places to park their money, looking beyond AI for investment opportunities. This could be good for the markets, which have been heavily reliant on a few tech behemoths. AI has the potential for huge productivity gains in the years to come, but competition between American and European companies, as well as Chinese tech giants, could drive prices down. Much of the profit could end up with companies and consumers who adopt the technology. For Norwegian fund investors, this could be a long-term concern, as American tech giants hold significant weight in global indices. A prolonged decline could negatively impact investors' home countries. While it's too early to dismiss the AI rally entirely, the market turbulence has provided investors with some relief. They will now be watching to see how much cash remains for the tech giants once all investments are paid off. AI could be a phenomenal investment for the global economy, but a disastrous one for those who pay the bills.",
  "summary": "Tekgigantene brenner av enorme summer på KI. Nå vil investorene se pengene.",
  "key_points": [
    "Alphabet's stock dropped 13%, losing $500 billion in market value",
    "Amazon and Intel reported heavy investments over revenue",
    "Tech giants investing over $200 billion in AI, risking cash reserves"
  ],
  "editors_take": "Massive capital expenditures are outstripping revenue for tech giants, signaling a shift from pure excitement to a period of financial scrutiny regarding the long-term profitability of artificial intelligence.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}