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Wall Street Woes: Is the AI Bubble Starting to Burst?

admin - Latest News - November 19, 2025
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With the Dow closing down nearly 500 points Tuesday and the S&P logging its longest slide since August, experts are pointing to concerns over an AI bubble. NBC’s Brian Cheung joins TODAY to break it all down.



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Nov. 19, 2025, 8:34 AM EST / Updated Nov. 19, 2025, 10:54 AM ESTBy Minyvonne Burke, Ben Goggin and Daniel ArkinLarry Summers, the former treasury secretary and ex-president of Harvard University, announced Wednesday he would resign from the board of directors at OpenAI amid scrutiny on his connection to convicted sex offender Jeffrey Epstein — ties that are now the subject of a new internal investigation at the Ivy League school.“In line with my announcement to step away from my public commitments, I have also decided to resign from the board of OpenAI,” Summers said in a statement Wednesday. “I am grateful for the opportunity to have served, excited about the potential of the company, and look forward to following their progress,” he added. Summers has been in the national spotlight following the House Oversight Committee’s publication of more than 20,000 documents from Epstein’s estate, including extensive email exchanges between Summers and Epstein.Summers, who was treasury secretary under President Bill Clinton and served as a top economic adviser to former President Barack Obama, joined the board of OpenAI in November 2023. OpenAI’s board of directors said it respected Summers’ decision to resign. “We appreciate his many contributions and the perspective he brought to the Board,” the AI giant said in a statement.Summers announced Monday he would step back from public commitments. He said he would continue teaching at Harvard University, where he was president from 2001 to 2006.“I am deeply ashamed of my actions and recognize the pain they have caused. I take full responsibility for my misguided decision to continue communicating with Mr. Epstein,” Summers said in a statement.Harvard, for its part, plans to open an investigation into Summers’ ties to Epstein, a spokesman for the school confirmed to the campus newspaper.In a statement to The Crimson, the student newspaper, university spokesman Jonathan L. Swain said Harvard is “conducting a review of information concerning individuals at Harvard included in the newly released Jeffrey Epstein documents to evaluate what actions may be warranted.”Swain did not immediately respond to NBC News’ request for comment Wednesday.The emails show Summers and Epstein communicated as recently as 2019, more than a decade after the financier pleaded guilty to soliciting prostitution from a minor. They continued to correspond until July 5, 2019, a day before Epstein was charged with sex trafficking of minors.In one batch of emails, Summers sought Epstein’s advice on his relationship with an unnamed woman. Epstein described himself as a “pretty good wing man.” In another exchange, Summers lamented that men who “hit on” women in the workplace may suffer career repercussions.Summers has not been accused of participating in any of Epstein’s alleged criminal behavior.In the wake of the document release, Summers was named as a target for investigation by President Donald Trump, who was repeatedly named in the trove of communications. Trump has denied any wrongdoing and said he ended his friendship with Epstein sometime in the 2000s.In a Truth Social post Friday, Trump wrote that he would ask U.S. Attorney General Pam Bondi to investigate Epstein’s involvement with prominent Democrats, including Summers and Bill Clinton. Bondi responded to the post on X, writing that she was assigning Jay Clayton, the U.S. attorney for the Southern District of New York, to the matter.Minyvonne BurkeMinyvonne Burke is a senior breaking news reporter for NBC News.Ben GogginBen Goggin is the deputy tech editor for NBC News.Daniel ArkinDaniel Arkin is a senior reporter at NBC News.Jared Perlo contributed.
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Nov. 18, 2025, 2:45 PM ESTBy Jared PerloThe robot warriors are coming, and so are the zillionaires, Sen. Bernie Sanders, I-Vt., warned in a wide-ranging interview with NBC News on the rise and risks of artificial intelligence.“I think we are not all that far away from the development of robotic soldiers,” Sanders said Sunday. “Right now, politicians — at least sometimes — have to worry about loss of life when they decide to go to war. If you don’t have to worry about loss of life, and what you worry about is loss of robots, what does that mean for issues of war and peace globally? It’s a big issue.” Sanders is known for his focus on the millionaires and billionaires of the world, and how the U.S. government might favor them. In recent months, he’s turned his attention to AI, which he says is an extension of his primary concerns about wealth inequality.“Today, before we have seen the full implications of robotics and AI, you’re looking at unprecedented wealth and income concentration,” Sanders said. “The top 1% of Americans own more wealth than the bottom 93%,” he said. “All of these zillionaires — the Musks, the Ellisons, the Bezoses, the Zuckerbergs — are investing hundreds and hundreds of billions of dollars into AI and robotics. What is the result of all that?”Elon Musk, the CEO of xAI, was just approved to receive a pay package from one of his other companies, Tesla, that could make him the world’s first trillionaire. “It will mean even more wealth and even more political power for these guys at the top, while our democracy gets weaker and weaker. Working people will see a significant decline in their standard of living unless we turn this around.”Sanders’ focus on AI comes as tech companies have announced historic AI investments and sought to secure goodwill from President Donald Trump. The Trump administration has prioritized ensuring America’s AI ecosystem is “unencumbered by bureaucratic red tape” to avoid an “onerous regulatory regime,” while also keeping many aspects of the Biden administration’s AI efforts.Sanders is not the only elected official bringing attention to the issue, with rising interest in AI legislation at both the state and the federal levels. On Tuesday, a House subcommittee met to discuss the safety of AI chatbots.In the interview with NBC News, Sanders said he sees the issue as an urgent matter and hopes to provoke more discussion about AI and its potential impacts on society: “The folks who have studied this moment are suggesting this ain’t just another technological revolution. It is a lot more profound, and it’s going to move a lot quicker.”With such a fast-moving and general purpose technology as AI, Sanders sees threats not only to workers, but also to larger notions of humanity. “People are worried that right now, many young people, teenagers, are relying on companionship from AI rather than fellow human beings,” Sanders said. “If kids today have AI as their best friends, as the ‘people’ they relate to, where they spend most of their time rather than other human beings, what kind of change does that mean for humanity?”“We’re talking about incredibly deep, deep issues of what it means to be human,” Sanders concluded. “This issue needs enormous discussion, and I hope we can provoke some of it.”Sanders will hold a town hall with “Godfather of AI” and Nobel Laureate Geoffrey Hinton on Tuesday night at Georgetown University to discuss AI’s trajectory, including its effect on workers. “People who know a lot more than I do about this, people like Elon Musk, Bill Gates, Dario Amodei, they are talking about massive, massive job dislocation,” Sanders said. “Musk recently said that ‘AI and robots will replace all jobs. Working will be optional.’”“But what the hell does that mean if it’s going to replace all jobs? If I’m a factory worker today, if I’m working in an office, how am I going to feed my family? How am I going to pay the rent? Who is talking about that?” Sanders added, also referencing recent claims from Anthropic CEO Amodei that AI could eliminate half of all entry-level white-collar jobs and increase unemployment by up to 20% in the next one to five years. “There has been far, far, far too little discussion among the American people, in the media and certainly in Congress about the implications of AI and robotics.”In October, Sanders released a report on AI and led a hearing on AI’s potential to support American workers and families. He’s also proposed a limited set of policies that he says could help address some issues posed by AI, including increased employee ownership of companies, a reduced workweek and even a potential robot tax on large corporations, using “the revenue to improve the lives of workers who have been harmed.”Sanders has also proposed that leading American AI company OpenAI should be broken up given its size. In his interview with NBC News, he said his call “was more general” than just OpenAI and meant to implicate several of America’s largest AI companies.“When I talk about breaking these [companies] up, I mean creating a situation where this new technology is designed to benefit ordinary people, not just designed by a handful of billionaires to make them even richer,” he said.“I don’t have a blueprint in my back pocket here, because nobody has ever had to deal with this reality, but the idea that a handful of multibillionaires can determine the future of humanity seems a little bit crazy to me.”Sanders is also criticizing growing efforts by American venture capitalists and deep-pocketed donors to create super PACs designed to lobby against AI regulation. “You’ve got people who are suggesting that it’s almost anti-religious, the Antichrist, to be demanding regulation of AI and robotics right now,” he said, obliquely referencing recent speeches by Silicon Valley stalwart Peter Thiel. In one of these lectures, Thiel said: “In the 21st century, the Antichrist is a Luddite who wants to stop all science.” “It almost takes you back to the 1700s and the monarchies throughout Europe,” Sanders said. “Some of these Big Tech guys think that they have a God-given right to rule the world, and the idea that a Congress or ordinary citizens might object to what they are doing, they see as something that is unacceptable.”“So they will put unlimited amounts of money into super PACs to elect candidates who will allow them to do whatever they want. It’s very dangerous.”Asked about increasing cooperation between leading American AI companies and the U.S. military, Sanders highlighted growing concerns about privacy. “How far away are we from a small number of people having access to the email that you’ve sent out, every phone call that you’ve been on, really every aspect of your life? We’re not far.”“Either we’re there right now or we certainly assume we’ll be there. That gives the people on top extraordinary control when they have that knowledge,” he said.Sanders joins a growing and bipartisan group of national politicians focusing on AI. Some, like Sen. Josh Hawley, R-Mo., have targeted the societal impacts of AI. Hawley has recently proposed several AI-related bills, including an effort to limit minors’ access to chatbots, a push to better track AI-related layoffs and a mechanism to evaluate AI models’ abilities. Others, including Sens. Elizabeth Warren, D-Mass., and Jim Banks, R-Ind., have proposed bills targeting the export of American AI technology and hardware to China. For his part, Sanders is hoping his voice can help advance the conversation. “I see growing awareness, but I don’t think Congress is moving anywhere near fast enough,” he said. Jared PerloJared Perlo is a writer and reporter at NBC News covering AI. He is currently supported by the Tarbell Center for AI Journalism.
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By Megan Lebowitz, Ryan Nobles and Kelly O’DonnellWASHINGTON — The Republican-led House Oversight Committee asserted in a report Tuesday that some executive actions former President Joe Biden signed by autopen, including his pardons, were “illegitimate” because he suffered from mental decline while in office and could have been unaware of their contents.The committee’s Republicans said in the report that they deemed as “void all executive actions signed by the autopen without proper, corresponding, contemporaneous, written approval traceable to the president’s own consent.” In a letter accompanying the report, Committee Chair James Comer, R-Ky., urged Attorney General Pam Bondi to investigate Biden’s executive actions “to ascertain whether they were duly authorized by the President of the United States.” Before he left office, Biden issued several pardons for members of his family and key associates whom he said could be targets of political retribution by the Trump administration. Those included preemptive pardons for his two brothers and sister; Dr. Anthony Fauci; former Joint Chiefs of Staff Chairman Mark Milley; members of Congress involved in the Jan. 6 investigation and their staff, including now Sen. Adam Schiff, D-Calif.; and Washington police officers who testified before that panel. He had previously pardoned his son, Hunter Biden, of federal gun and tax charges after saying he would not do so.The report comes as the Justice Department investigates several of President Donald Trump’s opponents, sparking outrage from critics who argue that the prosecutions mark blatant retaliation against people whom the president dislikes. Trump has also asked Bondi to look into Biden’s cognitive fitness while in office and autopen use.Trump and other Republicans have long tried to cast doubts on the legitimacy of Biden’s use of the autopen, claiming he did not understand what he was authorizing — an allegation that has been routinely disputed by Democrats and the former president’s allies. Trump, too, has used an autopen, as have other presidents, and Comer has used a digital signature for letters and subpoenas in the investigation into Biden’s use of the autopen. A congressional committee does not have the constitutional authority to declare a presidential action null or void, but the findings could be used by the Department of Justice for an investigation or potentially as part of a legal challenge to certain executive decisions made by Biden, including pardons that he issued.The 100-page document also accuses the Biden administration and the former president’s allies of shielding his alleged cognitive decline from the American public. Comer asked Bondi to investigate actions from certain Biden aides, including former White House physician Dr. Kevin O’Connor, who invoked their Fifth Amendment right during their testimony. An attorney for O’Connor said during his deposition to the committee that “revealing confidential patient information would violate the most fundamental ethical duty of any physician.” The White House did not immediately respond to NBC News’ request for comment on the report, and a Justice Department spokesperson declined to comment.A spokesperson for Biden said in a statement that the House Oversight Committee’s “investigation into baseless claims has confirmed what has been clear from the start: President Biden made the decisions of his presidency.””There was no conspiracy, no cover-up, and no wrongdoing,” the spokesperson continued. “Congressional Republicans should stop focusing on political retribution and instead work to end the government shutdown.”The former president himself has rejected the committee’s claims, saying in a June statement, “Let me be clear: I made the decisions during my presidency.””I made the decisions about the pardons, executive orders, legislation, and proclamations,” he said at the time. “Any suggestion that I didn’t is ridiculous and false.”The former president also told The New York Times in July that he orally granted the pardons before they were signed with the autopen because of the large number of clemencies involved.Democrats on the House Oversight Committee remained highly skeptical of the Republicans’ report, arguing that it was a waste of the committee’s resources.The top Democrat on the committee, Rep. Robert Garcia of California, referred to the report as a “sham investigation” and argued that people who testified before the committee said “Biden fully executed his duties as President of the United States,” including the authorization of “every executive order, pardon, and use of the autopen.””While House Republicans obsess about President Biden’s health, they are ripping away healthcare from 17 million Americans and spiking premiums,” he said in the statement. “It’s clear the only person’s health that Republicans care about is Joe Biden’s.”Democrats have also questioned Trump’s health amid the release of vague summaries of his medical evaluations. Biden’s age and mental acuity, however, became a major concern within the Democratic Party after his disastrous debate performance against Trump last year ultimately led him op drop out of the 2024 race. Biden was diagnosed with an aggressive form of prostate cancer just months after leaving the White House.The House Oversight Committee report comes after the Justice Department has brought cases against several prominent Trump critics, including former FBI Director James Comey, New York Attorney General Letitia James, and former Trump national security adviser John Bolton, who have all pleaded not guilty to various charges against them. Those indictments were announced in the days and weeks after Trump pressured Bondi in a Truth Social post, claiming that several of his political foes were “guilty as hell” and saying “we can’t delay any longer, it’s killing our reputation and credibility.”In the post, Trump called for action to be taken against Comey and Schiff, and the Justice Department has launched a probe into the senator over allegations of mortgage fraud — which James is also facing in the case against her. Like James, Schiff has denied any wrongdoing.NBC News and other news outlets later reported that the Truth Social post was intended to be a direct message to Bondi rather than a public post. In a speech in Boston on Sunday, Biden argued the country is in one of “the worst of moments,” an apparent reference to the Trump administration’s policies and the level of political violence that has gripped the nation.”Over 50 years of elected public life, this is the worst I’ve seen it,” Biden said. He argued that “our very democracy is at stake” and urged Americans to “get re-engaged” and “fight like hell.”Megan LebowitzMegan Lebowitz is a politics reporter for NBC News.Ryan NoblesRyan Nobles is chief Capitol Hill correspondent for NBC News.Kelly O’DonnellChief Justice and National Affairs CorrespondentTara Prindiville contributed.
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