Stay Ahead of the Curve
Latest AI news, expert analysis, bold opinions, and key trends — delivered to your inbox.
AI boom is starting to create casualties in Wall Street
3 min read Goldman Sachs says hedge funds are getting hit by an AI-driven sell-off as investors rethink which companies will survive the AI era. February 05, 2026 13:12
The AI boom is no longer just creating winners.
It’s starting to create casualties.
According to Goldman Sachs, hedge funds were hit by an AI-driven sell-off, as investors reassessed which companies will survive — and which won’t — in the new AI economy.
What’s happening
Hedge funds, known for riding tech trends early, are now facing losses as AI disruption reshapes the market.
Stocks in sectors exposed to automation and AI competition are being repriced, triggering volatility across global markets.
Why this matters
For years, AI was seen as a guaranteed growth story.
Now, the narrative is changing:
-
Some companies will dominate AI.
-
Others will be replaced by it.
Hedge funds are caught in the middle of that shift.
The deeper signal
This isn’t just a tech correction — it’s a structural reset.
Markets are beginning to price in a brutal reality:
AI doesn’t just create new industries.
It destroys old ones.
The bigger picture
As AI tools from companies like OpenAI and Anthropic accelerate automation, entire business models — from software to professional services — are being questioned.
Investors are no longer asking, “Who benefits from AI?”
They’re asking, “Who gets wiped out by AI?”
Bottom line
The AI boom is entering its dangerous phase.
And hedge funds just got their first real warning.
AI Agents