Global stock markets tumbled on worries that Democrats' midterm victory in the US could result in a slowdown in the AI boom. US stock markets lost over
3 trillion dollars and Asian markets plunged over 3 percent in early trade. The Dow Jones Industrial Average closed lower by over 1,800 points, NASDAQ over 1,400 points and S&P 500 over 300 points. Stocks erased the sharp gains from the rally seen in the wake of the US midterm elections, as investors quickened their shift away from technology stocks on fears of a data-center buildout slowdown. South Korean chip stocks also tumbled, triggering circuit breakers shortly after the market opened. Trading was suspended for 20 minutes as the benchmark Kospi Composite index tumbled 8.5 per cent and fell below the 5,000 mark. Dr. Jaijit Bhattacharya, President, C-DEP Research told Times Now Digital, "the US midterm elections have exposed a growing divide between the ambition to lead the global AI race and the domestic costs of building the infrastructure needed to support it. While Washington views AI infrastructure as a strategic priority, states and local communities are increasingly questioning its impact on electricity prices, water resources and public infrastructure. Greater regulatory scrutiny could fragment the American AI ecosystem, favouring technology companies with established computing infrastructure while increasing entry barriers for smaller players. The larger concern is that AI leadership may become increasingly concentrated among companies and countries that can afford the infrastructure and navigate complex regulations. For India, this reinforces the need to expand domestic computing capacity through an integrated policy framework that balances technological sovereignty, affordable energy and sustainable infrastructure development." Experts also emphasize on the implications that tighter constraints could raise about US tech leadership and create opportunities for China. They also the developments raise questions about AI equality, AI resources and global AI competition. Dr. Jaijit Bhattacharya, President, C-DEP Research said, "from a pure tech lens, yes it could be concerning. From a geo-technology lens, China could start dominating. From an equality perspective, it could be a good development."
