Several big tech firms whose leaders signed President Donald Trump’s artificial intelligence accord in September lost billions in market value on Thursday as a brutal sell-off swept through Wall Street following Democrats’ big win in Tuesday’s midterm elections. Nasdaq Composite, which is full of AI-related and other tech stocks, fell 5.5 percent, while the S&P 500 fell 4.4 percent and the Dow Jones Industrial Average sank 1,883 points. It came amid fears the Democratic Party’s sweeping victories on Tuesday, retaking control of both the House and Senate, could bring more scrutiny of AI companies and stall the construction of more data centers, which have faced opposition from voters on both sides of the political spectrum due to their impact on energy bills and the environment.
Trump has blamed the stock market fall on the election result. It came just over a month after Trump assembled a group of leaders of AI companies at the White House, where they signed what was cast as a voluntary accord aimed at addressing Americans’ fears about the technology. The agreement was signed by Trump, as well Anthropic CEO Dario Amodei, Google CEO Sundar Pichai, Meta CEO Mark Zuckerberg, OpenAI President Greg Brockman, Nvidia CEO Jensen Huang, and Elon Musk, founder of xAI, which has become part of Musk’s SpaceX.
Newsweek has contacted the companies for comment via emails sent outside regular business hours. Not all of the companies are publicly traded. Here’s how they fared on Thursday: Anthropic, the maker of AI assistant Claude, is not publicly traded, so it did not suffer a stock market loss on Thursday.
The company filed paperwork in October for an initial public offering (IPO) on Wall Street. However, analysts are now questioning whether the company will move forward with its highly anticipated IPO in the wake of the market sell-off. previously reported that it was expected to kick off the week of November 9. The company was recently valued at $965 billion, making it one of the world’s most valuable startups.
Shares of Alphabet, the parent company of Google and one of the most influential stocks on Wall Street, fell 2.2 percent on November 5. Based on Alphabet’s post-close valuation of approximately $3.47 trillion, the fall erased an estimated $78 billion in market value. It added to a volatile period for the company, after Alphabet suffered its worst-day ever on the stock market last month.
Alphabet stock fell almost 13 percent on October 29, the worst day for the company since it went public in 2004, losing about $500 billion in market value after reporting weaker than expected growth for the summer. Shares of Meta Platforms dropped 3.96 percent on Thursday The company finished the day with a market capitalization of about $1.55 trillion, suggesting the company lost about $60 billion in market value. Nvidia, a chip company that quickly became the face of the AI boom, sustained the biggest losses of any company that signed Trump’s accord.
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