1. Tech stocks take a near $1 trillion nosedive in market cap: The tech-heavy Nasdaq slumped 3% as eight major AI stocks — including Nvidia, Meta, and Palantir — collectively lost $800B in market value due to concerns around AI investments and signals of a weakening economy. Microsoft also shed about $350B, with investors getting queasy about its $34.9B quarterly spending spree on AI.
2. Perplexity will pay $400M to power search in Snapchat: Snap announced that it’s signed a $400M cash and equity deal with Perplexity to integrate Perplexity’s AI search engine directly within Snapchat. The deal gives Perplexity exposure to Snap’s 900M+ users and has caused Snap’s shares to rocket by 15%. The feature is expected to drop early next year.
3. EU set to water down landmark AI act: Brussels is reportedly backing down from parts of its strict AI rules, proposing a one-year “grace period” for companies breaching high-risk laws and delaying fines for transparency violations. The move comes after companies like Meta warned that overly strict regulations risk cutting Europe off from cutting-edge AI services.