AI Trade Reckoning Wipes $18 Billion From Asian Billionaires

A sharp overnight selloff in United States equities triggered a global technology rout on Friday, leading to institutional panic and significant wealth losses across Asia. The downturn centered on a reckoning for artificial intelligence investments, specifically impacting crowded trades and long-duration AI plays. Twenty-two billionaires from China, Japan, Taiwan, and South Korea lost a combined $18 billion, according to the Bloomberg Billionaires Index.

Masayoshi Son, founder of SoftBank Group Corp., saw the largest individual decline, with his fortune dropping by $3.9 billion to approximately $29 billion. The volatility was driven by uncertainty over future cash flows, specifically regarding data center policies under new Democratic senators in the United States and a reported valuation drop for the Anthropic IPO from $2 trillion to $1.5 trillion.

In Hong Kong and Taiwan, wealthy investors faced margin calls on leveraged bets and steep losses from structured notes. Companies in East Asia that expanded facilities using borrowed capital faced increased exposure, while hedge funds began unwinding tech positions and rotating into financials and global consumer stocks. Market support remained limited to corporate buybacks, retail investors, and local state funds in South Korea and Taiwan.