Tech stocks slid as debate over whether artificial intelligence is in a “bubble” intensified, with fresh remarks from OpenAI CEO Sam Altman and a reported shake-up inside Meta’s AI organization drawing attention to how the boom is unfolding.
Altman’s bubble warning meets Wall Street optimism
The Nasdaq fell 1.4% in its biggest one-day drop in three weeks, amid declines in Nvidia, Palantir, Arm, and AMD. The S&P 500 slipped 0.7% and losses extended across Asia, while Bitcoin dropped as well. According to Fortune, jitters followed a recent MIT finding that “95% of organizations are getting zero return” from generative AI pilots and Altman’s comments likening current enthusiasm to the 1990s dotcom era.
Altman said, as reported by The Verge and highlighted by Fortune: “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.” He also warned some investors may get “very burnt,” while maintaining that AI’s long-term value could outweigh short-term losses. Meanwhile, major tech firms including Microsoft, Alphabet, and Meta have recently reported better-than-expected results and continued investment in AI, Fortune noted.
Market snapshot and sentiment drivers
NYSE-listed Oracle fell, and markets in Japan, South Korea, and Hong Kong were down. The newsletter framed the pullback as either nerves over AI returns or a minor correction, without drawing a conclusion.
Meta reportedly splits ‘Superintelligence’ unit
Meta is considering a reorganization of its “Meta Superintelligence Labs,” splitting it into four groups focused on AI research, products, data center infrastructure, and superintelligence, Fortune reported, citing a New York Times account. The Times report noted some AI executives could depart, with others reassigned or laid off as resources are recalibrated.
Meta is also weighing the use of third-party models to power products—either licensing closed systems or building on open ones—according to the same report. That discussion follows Meta’s major investment in Scale AI two months earlier and the hiring of Alexandr Wang as chief AI officer, moves that coincided with the arrival of prominent talent including Shengjia Zhao, Nat Friedman, and Daniel Gross. Fortune wrote that these shifts have created “tensions” between the company’s “old guard” and newcomers that reorganization may partially alleviate.
Fortune’s tech newsletter presented the developments against a backdrop of mixed signals: confident Wall Street forecasts for AI, leadership remarks urging caution, and active restructuring inside a leading platform company.
