November 6 News — David Allen, Head of Long-Short Strategy at Plato Investment Management, said the root cause of Thursday's market sell-off is that investors are conflating artificial intelligence's transformative potential with whether related investments can actually deliver returns. The Nasdaq 100 Index tumbled as investors rushed to dump U.S. tech stocks amid market speculation that congressional Democrats will tighten regulation of the AI industry. Allen said competition for survival has long existed among the largest hyperscale cloud service providers, and the midterm election results served as the trigger for the sharp market decline. Vihari Ross, Portfolio Manager at Antipodes Partners, said this round of selling reflects the market beginning to re-examine the realistic conditions for the next phase of AI investment rather than structural problems among AI companies. She noted that achieving these goals requires massive debt financing, making funding costs and interest rate levels critical, and also depends on whether sufficient electricity supply can be secured and whether market demand can sustain current levels; assuming all companies can achieve perfect results is not a wise approach.