IBM’s recent AI warning sent a shockwave through the tech industry, with shares down more than 23% when the market opened on Tuesday. This significant drop raises fresh questions about whether companies are seeing enough near-term returns from artificial intelligence spending.

Market Impact

JPMorgan Chase CEO Jamie Dimon urged calm over fears about AI’s impact on jobs, stating that new technologies have historically created new jobs. Meanwhile, New York’s decision to pause the construction of large artificial intelligence data centers is drawing criticism from lawmakers and energy officials.

Rep. Alexandria Ocasio-Cortez praised the late Sen. Lindsey Graham for backing legislation that would allow victims of nonconsensual AI-generated deepfake pornography to file civil lawsuits. Additionally, a group of 26 Meta employees sued the tech giant over accusations that it used AI-powered software to choose people for mass layoffs, disproportionately targeting workers with disabilities or those who took medical, parental, or family leave.

Local Expansion

Meta is expanding its massive data center project in Richland Parish, Louisiana, to 5 gigawatts of compute capacity, making it one of the largest data centers in history. This expansion highlights the growing importance of AI in modern technology and its potential impact on local communities.

Original reporting: Fox News (HLL/CB) — read the source article.