AI Spending Concerns Wipe Billions Off Big Tech

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Major technology companies have seen sharp declines in market value in 2026 as investors grow wary of whether massive artificial intelligence investments will deliver adequate financial returns.

Microsoft shares have dropped around 17% this year amid concerns about rising competition and risks tied to its AI strategy, erasing roughly $613 billion from its valuation.

Amazon has also lost nearly 14% of its value, shedding about $343 billion as the company signaled plans to increase capital spending by more than 50% to support its AI ambitions.

Other leading tech firms have faced similar setbacks. Nvidia, Apple and Alphabet collectively lost hundreds of billions in market value as investors shifted focus from long-term AI potential to nearer-term profitability.

The trend reflects a broader change in market sentiment, with investors demanding clearer earnings visibility after years of enthusiasm around AI-driven growth.

Meanwhile, companies tied more directly to hardware and infrastructure such as TSMC and Samsung, along with retail giant Walmart, have seen their valuations rise significantly over the same period.

UK Moves Toward Social Media Ban for Under-16s

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The UK government is considering introducing a nationwide ban on social media use for children under 16, alongside tighter regulation of artificial intelligence chatbots, as part of efforts to respond more quickly to digital risks.

Prime Minister Keir Starmer’s administration has launched a consultation on the proposed ban and is working to amend legislation so that new rules could be implemented within months after the process concludes.

Officials are also seeking to close a regulatory loophole in the Online Safety Act that currently excludes one-to-one interactions with AI chatbots from safety oversight. Authorities have raised concerns about young users forming close interactions with AI systems that were not designed with child protection in mind.

Technology minister Liz Kendall said new proposals would be presented before June and confirmed that tech companies would be responsible for ensuring compliance with UK law.

Additional measures under consideration include restrictions on “stranger pairing” in online gaming, limits on the exchange of explicit content, and enhanced digital evidence preservation in cases involving minors.

The proposals follow growing global scrutiny of digital platforms and AI tools amid rising concerns over their impact on children’s wellbeing and online safety.

SpaceX Joins Pentagon Drone AI Contest

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Elon Musk’s SpaceX and its subsidiary xAI are reportedly competing in a classified Pentagon challenge focused on developing voice-controlled autonomous drone swarm technology.

According to Bloomberg, the initiative is part of a $100 million prize competition launched in January that seeks to create systems capable of translating voice commands into digital instructions for managing multiple drones simultaneously.

The project aligns with the U.S. Defense Department’s broader strategy to accelerate domestic drone innovation and streamline development processes. The technology under consideration could play a role in future security applications, including protecting major events and critical infrastructure.

SpaceX’s participation follows its recent acquisition of xAI, combining aerospace engineering with advanced artificial intelligence capabilities ahead of the company’s planned IPO.

Major AI firms including OpenAI, Google, Anthropic and xAI previously secured Pentagon contracts worth up to $200 million each to advance AI adoption in defense systems.