Big Tech is pouring money into Anthropic and next-gen models, but investors are suddenly losing faith in the AI trade
MARKET INSIDER – Money is gushing into artificial intelligence companies at the very moment Wall Street is pulling money out of AI stocks—an unusual split that’s raising eyebrows across global markets. Even as Microsoft and Nvidia commit a massive $15 billion combined investment into Anthropic, one of OpenAI’s most aggressive challengers, shares of AI heavyweights continue to slide, dragging the S&P 500 into its longest losing streak since August. The contradiction underscores a growing tension: corporate conviction in AI’s future is rising fast, while investor confidence is quietly eroding.
The latest megadeal reads like a familiar Silicon Valley loop. Microsoft is putting up to $5 billion into Anthropic, and Nvidia up to $10 billion, while Anthropic has agreed to buy compute power and infrastructure back from both companies. The arrangement echoes a pattern now dominating the AI ecosystem—capital circulates in closed loops between the same handful of tech giants and model developers, reinforcing their dominance even as public markets start to balk at stretched valuations.
Meanwhile, Google is pushing ahead with its own arms race. The company unveiled Gemini 3, with CEO Demis Hassabis promising fewer clichés and “genuine insight.” Alphabet’s Sundar Pichai says the new model will require less prompting, part of a rapid-fire upgrade cycle coming just eight months after Gemini 2.5. The innovation is real, yet investors remain unconvinced: shares of Nvidia, Amazon, and Microsoft all tumbled on Tuesday, sending the S&P 500 lower for a fourth straight session. With Nvidia—described by CFRA strategist Sam Stovall as “the top company within the top industry within the top sector”—set to report earnings next, traders are bracing for more volatility if the chipmaker fails to deliver a blowout beat.
Anthropic’s valuation is now estimated at $350 billion, a staggering figure for a company that didn’t exist five years ago. But skepticism is spreading across markets. Bitcoin dipped below $90,000 before recovering, Asia-Pacific tech stocks slumped on Wednesday, and regulatory risks are rising. In Washington, senators are urging an investigation into World Liberty Finance, a Trump-linked crypto firm accused of selling tokens to sanctioned entities in North Korea and Iran.
Beyond the AI frenzy, global investors are shifting their gaze toward Asia’s still-robust private markets. EQT, one of the world’s biggest private-equity players, just raised more than $10 billion for its latest Asia fund and is betting heavily on early-stage Chinese startups and domestic consumption trends. The firm plans to deploy another $930 million into South Korean enterprise software player Douzone Bizon, a sign that traditional private-market money sees opportunity where public-market investors are turning cautious.
The split between corporate AI investment and public-market AI fatigue is widening—and may be signaling a pivotal moment. Either Big Tech is seeing something the market doesn’t, or investors are finally questioning whether the AI rally can justify its historic valuations. The next few earnings cycles will decide which side is right, and whether the world’s most hyped technology boom can sustain momentum without the market’s blind optimism.
