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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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OpenAI Finds More Chinese Groups Using ChatGPT for Malicious Purposes

FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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OpenAI Finds More Chinese Groups Using ChatGPT for Malicious Purposes

FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

OpenAI is seeing an increasing number of Chinese groups using its artificial intelligence technology for covert operations, which the ChatGPT maker described in a report released Thursday.

While the scope and tactics employed by these groups have expanded, the operations detected were generally small in scale and targeted limited audiences, the San Francisco-based startup said, according to Reuters.

Since ChatGPT burst onto the scene in late 2022, there have been concerns about the potential consequences of generative AI technology, which can quickly and easily produce human-like text, imagery and audio.

OpenAI regularly releases reports on malicious activity it detects on its platform, such as creating and debugging malware, or generating fake content for websites and social media platforms.

In one example, OpenAI banned ChatGPT accounts that generated social media posts on political and geopolitical topics relevant to China, including criticism of a Taiwan-centric video game, false accusations against a Pakistani activist, and content related to the closure of USAID.

Some content also criticized US President Donald Trump's sweeping tariffs, generating X posts, such as "Tariffs make imported goods outrageously expensive, yet the government splurges on overseas aid. Who's supposed to keep eating?".

In another example, China-linked threat actors used AI to support various phases of their cyber operations, including open-source research, script modification, troubleshooting system configurations, and development of tools for password brute forcing and social media automation.

A third example OpenAI found was a China-origin influence operation that generated polarized social media content supporting both sides of divisive topics within US political discourse, including text and AI-generated profile images.

China's foreign ministry did not immediately respond to a Reuters request for comment on OpenAI's findings.

OpenAI has cemented its position as one of the world's most valuable private companies after announcing a $40 billion funding round valuing the company at $300 billion.