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Tech Market Values Fall on AI Costs and Recession Fears; Eli Lilly, Berkshire Gain

]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights
]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights
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Tech Market Values Fall on AI Costs and Recession Fears; Eli Lilly, Berkshire Gain

]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights
]The logo for Google is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights

Market values of major tech firms declined in August amid concerns over escalating artificial intelligence infrastructure costs and rising recession risks that would make the stocks particularly vulnerable during a market correction.

Last month, Alphabet Inc's lost 4.7% of its market value as a slowdown in YouTube's advertising sales fuelled concerns about its earnings. A US judge's ruling that Google had violated antitrust laws and the emergence of new competition from OpenAI, which is developing an AI-based search engine prototype, also contributed to its shares' decline.

Amazon.com Inc's market value fell 4.5%, affected by slowing online sales.

Tesla's market capitalisation fell 7.7% last month after weaker Q2 earnings and following the news that Canada planned a new 100% tariff on Chinese-made electric vehicles, Reuters reported.

The world's most valuable automaker started shipping Shanghai-made EV's to Canada last year and Ottawa's plans raised concerns about the potential profit impact of exporting from its higher-cost US production base.

Meanwhile, Nvidia's market value fell in the last week of August by 7.7% to $2.92 trillion, after it projected third-quarter gross margins below market estimates and reported revenues that only met expectations, disappointing investors who were expecting a stronger performance.

Nvidia, which commands more than 80% of the AI chip market, stands in a unique position as both the largest enabler as well as beneficiary of surging AI development.

On a positive note, US drugmaker Eli Lilly's market value surged nearly 20%, leading market gainers, driven by robust sales and the launch of a weight-loss drug that significantly reduces the risk of developing type 2 diabetes in overweight adults.

Berkshire Hathaway's market value closed above $1 trillion for the first time at the end of August, reflecting investor confidence in the conglomerate that Warren Buffett built over nearly six decades into what many consider a proxy for the US economy.

Meta's market value also climbed nearly 10% after it beat market expectations for its second-quarter revenues and forecast strong revenue growth in the July-September quarter, indicating that strong digital ad spending on its platforms could offset the costs of its AI investments.

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Elon Musk's AI Chatbot Grok Gets an Update, Starts Sharing Antisemitic Posts

xAI and Grok logos are seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration
xAI and Grok logos are seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration
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Elon Musk's AI Chatbot Grok Gets an Update, Starts Sharing Antisemitic Posts

xAI and Grok logos are seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration
xAI and Grok logos are seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration

Elon Musk's artificial intelligence company said Wednesday that it's taking down “inappropriate posts" made by its Grok chatbot, which appeared to include antisemitic comments that praised Adolf Hitler.

Grok was developed by Musk’s xAI and pitched as alternative to “woke AI” interactions from rival chatbots like Google’s Gemini, or OpenAI’s ChatGPT.

Musk said Friday that Grok has been improved significantly, and users “should notice a difference.”

Since then, Grok has shared several antisemitic posts, including the trope that Jews run Hollywood, and denied that such a stance could be described as Nazism.

“Labeling truths as hate speech stifles discussion,” Grok said.

It also appeared to praise Hitler, according to screenshots of a post that has now apparently been deleted.

“We are aware of recent posts made by Grok and are actively working to remove the inappropriate posts,” the Grok account posted early Wednesday, without being more specific.

"Since being made aware of the content, xAI has taken action to ban hate speech before Grok posts on X. xAI is training only truth-seeking and thanks to the millions of users on X, we are able to quickly identify and update the model where training could be improved.

Also Wednesday, a court in Türkiye ordered a ban on Grok after it spread content insulting to Turkish President and others.

The pro-government A Haber news channel reported that Grok posted vulgarities against Turkish President Recep Tayyip Erdogan, his late mother and well-known personalities. Offensive responses were also directed toward modern Türkiye's founder, Mustafa Kemal Atatürk, other media outlets said.

That prompted the Ankara public prosecutor to file for the imposition of restrictions under Türkiye's internet law, citing a threat to public order. A criminal court approved the request early on Wednesday, ordering the country’s telecommunications authority to enforce the ban.

It's not the first time Grok's behavior has raised questions.

Earlier this year the chatbot kept talking about South African racial politics and the subject of “white genocide” despite being asked a variety of questions, most of which had nothing to do with the country. An “unauthorized modification” was behind the problem, xAI said.