Disappointing Oracle results knock $80bn off value amid AI bubble fears

Donald Trump signed an executive order aimed at preventing states from enacting their own artificial intelligence (AI) regulations, establishing a federal taskforce to challenge such laws. The order reflects the administration's intent to streamline AI governance at the national level, emphasizing the need for a unified approach to foster innovation in the sector.

U.S. President Donald Trump signed an executive order aimed at establishing a unified federal regulatory framework for artificial intelligence (AI), intending to preempt a growing number of state laws that could create a fragmented regulatory environment. The order emphasizes the need for a central source of approval for AI regulations.

Runway has introduced the GWM-1 family of 'world models,' positioning itself as a serious competitor in the AI technology landscape alongside established players like Google and Nvidia. This move highlights Runway's ambitions to expand its influence beyond traditional Hollywood applications into broader technological realms.

Elon Musk is collaborating with the government of El Salvador to introduce the Grok chatbot, developed by his artificial intelligence company xAI, to over 1 million students in more than 5,000 public schools as part of an AI-powered education initiative. This announcement was made on December 11, 2025, by xAI, highlighting a significant move towards integrating AI in education.

Oracle shares fell approximately 11% in premarket trading, following a disappointing earnings report that raised investor concerns across the tech sector, particularly affecting AI-related stocks. This decline marks a significant downturn for the company amid ongoing scrutiny of its financial performance.

Oracle's shares have experienced their largest decline since January, following a report of a significant increase in spending on AI data centers and related equipment, amounting to $15 billion. This news has raised concerns among investors regarding the company's financial strategy and its ability to generate returns from these investments.

Synopsys, a chip-design software maker, has provided a positive first quarter forecast following a significant equity investment from Nvidia. CEO Sassine Ghazi discussed these developments during an appearance on Bloomberg Tech, highlighting the optimistic outlook for the company.

Oracle's shares have plunged following a significant increase in the company's artificial intelligence spending, which has reached $15 billion. Analyst Alex Zukin from Wolfe Research suggests that this decline is more about a 'timing mismatch' rather than fundamental issues with the company itself.