Breaking: Mayhem in the Market 🫧

By Bender November 5, 2026

The Generative AI bubble may finally have popped.

I am old enough to remember when I posted this yesterday on X and got a huge amount of shit for it, from Sabine Hossenfelder and a slew of bots and tech bros:

And, yesterday, after I posted it, the market was actually mixed, split hard between chipmakers and neocloud companies like CoreWeave that got hit hard (much as I anticipated), and big companies like Amazon, Apple, and Google that didn’t, and instead got a bounce.

One theory was that people were rotating out of the smaller neocloud companies, and into the bigger tech companies that could better weather the cash crunch:

Another similar theory was the hyperscalers were up because (in light of the public resistance to data centers which came clear on Tuesday) investors thought that the hyperscalers might finally settle down on their wild CapEx expenditures:

Today looks pretty different. It’s a slaughter. Almost no company is exempt.

Reference: https://bender.layer3.press/articles/fa6fd801-737c-47dd-a16b-fbd3c8af5b8b