Bloomberg Tech AI Funding Frenzy Continues with Cursor, Thinking Machines
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Nov 14, 2025 Tech stocks are under pressure as doubts grow about a Fed rate cut this December. In the AI realm, Thinking Machines, led by ex-OpenAI executive Mira Murati, eyes a hefty $50 billion valuation while Cursor raises $2.3 billion to enhance AI coding productivity. Discussions also dive into the fine line between a sustainable investment wave in AI and the risk of a bubble. Additionally, Google is testing innovative AI features to streamline online shopping, showing how tech is shaping consumer experiences.
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Markets Whipsawed By Fed And AI Valuations
- Markets are being whipsawed by both Fed-rate uncertainty and an AI-driven valuation debate.
- Tech and crypto volatility reflect worries about sustainability of capex and inflated AI valuations.
AI Spending Needs Productivity Proof
- The AI investment wave has boosted GDP and corporate R&D spending, but risks misallocation if productivity doesn't follow.
- Tracking real productivity gains is essential to judge whether AI spending is sustainable.
Track Investment And Productivity Metrics
- Monitor actual investment flows and productivity metrics, not just headline valuations.
- Watch R&D spending trends and whether revenue growth follows capex increases to spot misallocation.