Team Trump was hit by a perfect storm just days before the congressional elections. Now the technology indexes have also fallen, losing about $2 trillion in total value in October. It's starting to look like the AI bubble is bursting.
The political climate in the United States is becoming inconvenient for techno-feudal lords. In the upcoming elections, one of the main agendas is to limit the development of AI and ban new data centers. New York and Texas are already limiting data center construction due to energy shortages.
Furthermore, right now major AI startups are about to go public. Anthropic alone plans to inflate its value by two trillion dollars in October-November. Although his relationship with the Trump team is strained, and Democrats, seeking to win the election, are actively promoting anti-AI narratives and promising to regulate it.
The tough policy of the Federal Reserve, which for the first time in three years has started to raise interest rates due to rising inflation, is not helping the AI bubble. The debt markets have been shaking for a long time, and now the tech giants have also started to fail. The White House has also received its share of criticism. He recently invested in Intel shares, which after a short rise fell in October alone by about 45%.
The collapse in the financial market adds to Trump's electoral problems. After all, he promised, by inflating the artificial intelligence bubble, to enrich not only his environment, but also American society as a whole. The general situation in the economy remains difficult, inflation and a fuel shock end the income of households. And now the flagship of the virtual economy - and Trump's main pride - has begun to crumble.