The flow of money in AI appears one-way at this point

The influx of capital into artificial intelligence firms continues unabated, even as AI stocks experience a downturn. Recently, tech giants Microsoft and Nvidia announced a joint investment of $15 billion in Anthropic, an AI startup. This deal highlights a recurring theme in the AI sector: significant investments often lead to substantial commitments for computing resources from the investors themselves. However, the landscape isn't solely defined by financial maneuvers. Google's DeepMind revealed its latest AI model, Gemini 3, promising deeper insights with less prompting. Demis Hassabis, CEO of DeepMind, emphasized that this iteration aims to enhance the quality of interactions with users. Despite these advancements, investor confidence appears shaky. Major players like Nvidia, Amazon, and Microsoft saw their stock prices decline on Tuesday, contributing to a four-day losing streak for the S&P 500 — its longest downturn since August. Analysts are particularly concerned about Nvidia's upcoming earnings report; a disappointing performance could extend the current market slump. Across the Atlantic, Europe's Stoxx 600 index fell by 1.72%, reaching its lowest point in a month, amidst broader concerns about economic stability. Meanwhile, Bitcoin prices fluctuated, dipping below $90,000 before recovering. In addition to the investment news, U.S. senators are calling for an investigation into World Liberty Finance, a cryptocurrency firm tied to the Trump family, following allegations of selling tokens to entities linked to North Korea and Iran. As the AI sector faces scrutiny, some analysts suggest that certain global stocks and non-equity assets may provide resilience against the current turbulence in U.S. tech stocks. The ongoing diplomatic tensions between Japan and China also threaten to impact Japan's economy, with projections indicating potential GDP losses that could reach 1.79 trillion yen due to recent geopolitical developments.