Global Markets Plunge on AI Infrastructure Fears

Global markets experienced a sharp sell-off on Tuesday, driven by fears over the sustainability of artificial intelligence (AI) infrastructure spending. Bitcoin plummeted 2.7% to around $63,200 after the U.S. market close.

The decline in crypto prices was accompanied by a sharp drop in tech stocks, with South Korea's Kospi index falling over 10%. Samsung and SK Hynix, two of the world's largest suppliers of high-bandwidth memory chips used in AI servers, saw their shares fall nearly 14%.

Nvidia shed around 5% after its AI-related financing commitments surpassed $750 billion, raising questions about the sustainability of the AI infrastructure buildout. The Federal Reserve's two-day policy meeting began on Tuesday, with a rate decision expected Wednesday.