AI Cryptos in Freefall: Big Tech’s $500B AI Binge Spooks Investors

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Oh, the drama! Top AI cryptos like TAO, NEAR, ICP, and RENDER have taken a nosedive, plummeting over 20% faster than a Bridget Jones’s New Year’s resolution. Turns out, investors are having second thoughts about this whole AI crypto thing, thanks to Big Tech’s sudden obsession with spending billions on AI infrastructure. Who knew machines could be such divas?

  • The AI crypto market cap dropped 40% on Friday. Yes, you read that right. Forty. Percent. Someone call the therapist.
  • Big Tech’s AI spending spree has investors clutching their pearls and running for the hills.

According to CoinGecko (the gossip column of the crypto world), Bittensor (TAO), the Beyoncé of AI cryptos with a $1.58 billion market cap, is down 23% in the past week. Near Protocol (NEAR) isn’t doing much better, down 25.4%, while Internet Computer (ICP) and Render (RENDER) are basically twins in misery. It’s like a bad breakup, but with blockchain.

The entire AI crypto market is now worth a mere $12 billion, down 42% in 24 hours. That’s less than what Mark Darcy spends on cheese in a year. Ouch.

Why the meltdown? Well, Big Tech giants like Alphabet and Amazon are throwing around $500 billion on AI by 2026. That’s right, billion. With a B. Investors are now worried these companies will spend all their pocket money before they figure out how to make a profit. Classic overachiever problem.

And let’s not forget the earnings reports, which basically said, “We’re spending like crazy, but profits? Not so much.” Shocking, I know.

This panic has spilled over into the stock market, where AI-linked darlings like Microsoft, AMD, and Nvidia are taking a beating. Microsoft is down 8%, while AMD and Nvidia are down 18.5% and 10%, respectively. It’s like the whole tech world is having a collective midlife crisis.

These companies are the unsung heroes (or villains, depending on your perspective) behind the AI crypto scene. Bittensor needs their GPUs like I need Chardonnay on a Friday night. Near Protocol is all about scalability, Internet Computer is the cloud whisperer, and Render is basically the Picasso of decentralized computing. But who’s buying the art now?

AI Cryptos: When the Party Ends and the Bills Arrive

Aside from Big Tech’s spending spree, AI tokens are also reeling from Bitcoin’s dramatic plunge below $60K. Yes, Bitcoin, the drama queen of crypto, triggered $2.6 billion in liquidations. It’s like the entire market is one big soap opera, and we’re all just here for the popcorn.

Macroeconomic worries and geopolitical tensions are adding to the chaos, driving risk-on sentiment faster than I run from a spin class. Speculative assets? More like speculative nightmares.

So, what’s next for AI cryptos? Will they bounce back, or are they destined to become the next Tamagotchi-a fleeting fad we’ll laugh about in retrospect? Only time will tell. In the meantime, grab your popcorn and enjoy the show. It’s going to be a wild ride.

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2026-02-06 13:00