Time magazine has named the “architects of AI” as its Person of the Year, an announcement indicative of the extraordinary developments in artificial intelligence throughout the past year. This recognition comes at a particularly challenging time for the industry, marked by significant stock declines among AI-related companies.
In premarket trading, shares of Oracle (ORCL) plummeted over 12% after the cloud computing giant reported substantial expenditures related to AI along with a disappointing financial outlook. This decline in Oracle’s stock negatively influenced the broader market, leading to notable drops in nearly all AI-related stocks.
Oracle has seen its stock value fall by more than a third over recent months, a stark contrast to the rapid growth it experienced earlier this year due to its advancements in AI technology. Investors are becoming increasingly worried as the company revealed that its AI investments will require an additional $15 billion—much higher than initially anticipated. In the latest quarter alone, Oracle spent $10 billion on AI initiatives. Concerns about the company’s financial health are compounded by its substantial debt, exceeding $100 billion.
The downturn also impacted other major players in the tech sector. Shares of chip manufacturers Nvidia and AMD, as well as tech giants Microsoft and Meta, all registered declines. AI cloud computing startup Coreweave (CRWV) experienced nearly a 5% drop.
Despite Thursday’s setbacks, the overall momentum of AI this year cannot be overlooked. In another significant move in the sector, Disney announced a $1 billion investment in OpenAI, planning to license some of its iconic characters for use in their AI video creation tool, Sora.
Among those highlighted by Time is OpenAI’s Sam Altman, who is collaborating with Oracle on a massive $500 billion initiative known as Stargate aimed at enhancing AI infrastructure across the United States. While OpenAI remains privately held, it faces mounting competition from firms like Google and Anthropic, which are rapidly advancing in the field.
Time’s recognition stresses the transformation AI has brought about, indicating that its “full potential roared into view” this year and suggesting that society cannot afford to turn back from these advancements. The magazine’s covers will feature various interpretations of AI’s impact, one depicting a construction scene with letters representing the future, while the other references the iconic 1932 image of workers atop a skyscraper, showcasing notable figures like Mark Zuckerberg of Meta, Elon Musk from xAI, and AMD’s Lisa Su.
This annual tradition by Time, which began in 1927 as “Man of the Year,” has evolved to honor a collective or concept that has wielded significant influence over the past year. Past honorees include a range of figures from politics, entertainment, and innovation, underscoring the impact of diverse movements and individuals on society.
