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That was Monday morning.

The impact has rippled throughout the market.

By Tuesday close, Nvidia had fallen 8.3% or roughly $230 billion in market cap for just that one company.

Amazon which has invested billions into Anthropic dropped for 0.7%, Microsoft fell for 0.2%, and Alphabet Google dipped 3.9%.

Across the sector, Global X Artificial Intelligence ETF dropped 6.1%.

In total, more than $800 billion has evaporated from AI-adjacent public companies in the last 48 hours.

There's an image here.

According to Marcus Webb, head of AI research at Morgan Stanley, the market reaction isn't simply to the lost revenue and business from one major player, it's from the uncertainty this introduces.

Why did they do this really?

Will other actors halt over similar concerns?

Will the regulatory environment change?

We don't know and that spooks investors.

For Anthropic itself, the damage must be inferred.

Secondary trading froze, with analysts predicting a 50-70% haircut if trading resumes which puts the losses at $150-250 billion.

We don't really know, said Webb, no one wants to be the first to bid.

The IPO is on hold indefinitely.

The chips are still falling on this one as the world debates why.

In 2023, hundreds of AI leaders, including Dario Amadei, Anthropic, Sam Altman, OpenAI, and Demis Hassabis, Google DeepMind, signed a one-sentence statement mitigating the risks of extinction from AI should be a global priority alongside other societal scale risks such as pandemics and nuclear war.

AI is often compared to nuclear energy.

Powerful but potentially dangerous.