Jeff Bezos Loses $21 Billion: Impact Of AI Concerns On Amazon’s Stock

Jeff Bezos’ net worth dropped by over $21 billion after Amazon.com Inc. announced its intention to continue investing heavily in artificial intelligence, even at the expense of short-term profits. The online retailer’s shares fell by as much as 13%, reducing Bezos’ net worth to $185.3 billion, according to the Bloomberg Billionaires Index.

This one-day loss is the second largest after his $36 billion loss on April 4, 2019, following his divorce settlement. Amazon’s second-quarter revenue fell short of analysts’ estimates, with strong cloud computing offset by weakness in its main e-commerce business. CEO Andy Jassy has been leading a cost-cutting campaign to free up resources for AI investment, but investors are concerned about the impact on profits.

There are concerns in the tech industry that AI-fueled gains are overdone or the market is too concentrated. The Nasdaq 100 Index has plunged into correction territory, wiping out over $2 trillion in value in just over three weeks. Technology billionaires have collectively seen $68 billion carved from their fortunes, according to Bloomberg’s wealth index.

Bezos, the world’s second-richest person, has been steadily offloading Amazon shares this year, selling stock worth about $8.5 billion in February and disclosing a plan to sell 25 million additional shares worth $5 billion last month.