Trillion-Dollar Tech Wipeout: AI Fears Trigger Global Stock Market Rout

• A rapid and widespread selloff has wiped out hundreds of billions from global stock, bond, and loan markets, primarily impacting Silicon Valley tech companies.
• The current market rout, unlike previous ones, is driven by concerns that AI is poised to disrupt and supplant existing business models across various industries, not by bubble fears.
• The spark for the selloff was an AI startup, Anthropic PBC, releasing a new tool for legal work, intensifying fears of AI's practical application and broader impact.
• Even major AI beneficiaries like Alphabet Inc. and Arm Holdings Plc faced investor unease due to higher AI capital spending and missed revenue forecasts, respectively.
• The market downturn has spread globally, affecting companies like London Stock Exchange Group Plc, Tata Consultancy Services Ltd., Infosys Ltd., Samsung Electronics Co., and SoftBank Group Corp.