I doubt how bad Friday will be, so the title of this article (“AI’s Black Friday”) is a bit tongue in cheek. But Friday was worse; One and a half trillion dollars in market value disappeared overnight in the tech industry.
The Dow fell, but only by 1.35%. Chip companies (NVIDIA, Broadcom, Micron) GPU lasers (Corveo and Nebius) and some major AI-related companies (Oracle, Microsoft, Meta, etc.) took big hits:
The semiconductor-heavy S. Korean market also fell.
Global market investor@GlobalMktObserv
🚨South Korea’s AI-driven stock market bubble shows its first serious cracks: KOSPI fell -5.5% on Friday, Samsung Electronics fell -6.4% and SK Hynix fell -9.9%.
7:53 am · June 5, 2026 · 21.3 thousand views
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That’s not too bad either. Perhaps this expression:
Edward Dowd@David Edward
Wow…this is what people say. No path to profit. They have to socialize their losses.
CNBC Tech @CNBCtech
Trump administration discusses possible government role in OpenAI AI startup https://t.co/NrptJTDAWY
6:11 pm · June 5, 2026 · 447K views
219 answers · 1.68 thousand reprints · 7.69 thousand likes
Remember this tweet?
Gary Marcus@Gary Marcus
The countdown now begins until LLMs are said to be “too big to fail”. “We cannot afford to lose to China”, and they will accept multi-billion dollar bailouts.
8:14 PM · January 6, 2025 · 470 thousand views
41 answers · 225 reprints · 1.74 thousand likes
The game is on. “Investment” is another term for bailout.
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I had This is To say about it:
In short, it stinks.
Garry Kasparov@Kasparov63
It smells like corruption and socialism, the hallmarks of the Trump administration.
Gary Marcus @Gary Marcus
Smells like a bailout. It smells like garbage. 🤮
3:53 pm · June 6, 2026 · 2.48 thousand views
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Bailing out OpenAI means crony socialism and corruption (remember the $25 million donation from Greg Brockman and his wife?), blocking capitalism from its natural course.
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But it’s not just OpenAI:
The Washington Post@WashingtonPost
President Trump has said he is considering taking government stakes in leading artificial intelligence companies. The president said industry leaders would soon meet at the White House to discuss the idea.
wapo.st
Trump says he’s considering government stakes in top AI companies
10:15 pm · June 5, 2026 · 82.4K views
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The ramifications of this could be larger, with geopolitics more important than economics. As I Mentioned in XNo one is going to trust an American AI company partially owned by the US government. Just like the US doesn’t trust Huawei, Europe and Asia aren’t going to trust companies like OpenAI and Google. The new cold war will be about AI. (And Google probably won’t accept Trump’s offer of investment, their revenue is global; OpenAI may be so desperate they have no choice.)
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But back to economics. Who can forget the unhappy meta that ultimately wins the prize for more money burned and fewer results?
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Meanwhile, it was announced yesterday that Musk is leasing another 110,000 GPUs to Google and 220,000 to Anthropic.
Sawyer Merritt@SawyerMerritt
SpaceX has signed a deal with Google worth $920 million per month, according to a new filing. “On June 5, 2026, we entered into a cloud services agreement with Google regarding access to compute capacity.
6:58 pm · June 5, 2026 · 1.71 million views
377 responses · 870 reprints · 7.74 thousand likes
Last year, people had to steal GPUs from armored trucks. This year, SpaceX’s AI division has been leasing GPUs left, right and center because they can’t figure out what to do with them.
If the criteria is “what you need” or the AGI is really close, Elon will hoard LLMs rather than lease them.
Some may ask if Elon is making money on this deal (I don’t know), but the real question is why he’s leasing the chips he hoarded last year in the first place.
Gary Marcus@Gary Marcus
Elon, last year: Grok 5 has a 10% chance of being the world’s first AGI. Elon, this year: All right, we’re going to be like CoreWeave, but bigger.
Elon Musk @elonmusk
My estimate of the probability of reaching Grok 5 AGI is now 10% and rising
1:05 AM · June 6, 2026 · 1.87 thousand views
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Whether SpaceX makes or loses money on deals with Google and Anthropic, they dare to win the frontier model race by out-arming their competitors rather than themselves.
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And a friend who read a draft of it said, “If SpaceX is leasing back to Google and Anthropic, it’s servers and chips now. Those guys don’t need to buy it themselves. Elon clearly bought a lot of hardware he didn’t need. He didn’t buy significant capacity before the need or use case arose.”
None of this bodes well for Nvidia, CoreWeave, Oracle, Nebius, Micron and various other hardware and semiconductor providers.
And my friend adds, “So Google and Meta are also true [historically] Companies that are highly cash-flow positive may need to sell stock to continue funding their AI investments. Shows you that this whole thing is a black hole.”
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I leave you with these predictions, Wrote a few days agoBefore the poop starts hitting the fan:
I don’t know if Monday’s market will continue the downward trends we saw on Friday. But it should.
Coming soon: Why AI has had less of an impact on real-world productivity than many expected.
#AIs #Black #Friday