A.I., Crypto & Tech Stocks

Together with NetPicks

By Lisa Eadicicco, Hadas Gold, and Clare Duffy Published December 30, 2025

EDITOR’S NOTE: This story discusses suicide and mental health crises. If you or someone you know needs help, call or text 988 (Suicide & Crisis Lifeline in the US) or visit international resources via the International Association for Suicide Prevention.

Hundreds of billions invested in infrastructure, rising mental health concerns linked to AI companions, thousands of tech jobs displaced, and heated debates over regulation—these defined artificial intelligence in 2025.

While AI has powered background technologies for years, ChatGPT's 2022 debut brought it mainstream. By 2025, chatbots like Google's Gemini, Meta AI, and others integrated deeply into daily tools, from search engines to social apps, reshaping how people access information online.

This year, AI's influence extended to policy, trade, markets, and society, sparking questions about its role in work, education, and personal lives. Experts predict even greater changes ahead.

“2025 marked a shift to more serious, practical applications of AI,” said James Landay of Stanford's Institute for Human-Centered Artificial Intelligence. “We're now grappling with real benefits alongside significant risks.”

President Donald Trump emerged as a strong AI proponent in his second term. Nvidia CEO Jensen Huang became a frequent White House advisor, and Trump leveraged AI chips from Nvidia and AMD in trade negotiations with China.

Trump's administration released an AI Action Plan to reduce regulations and promote government adoption. Multiple executive orders followed, including one in December blocking states from enforcing independent AI rules—a move hailed by tech leaders but criticized by safety advocates for potentially reducing accountability.

Legal challenges are expected in 2026, with critics questioning the order's constitutionality amid a patchwork of state laws on issues like deepfakes and chatbot disclosures.

Without comprehensive federal safeguards, AI's harms gained attention. Lawsuits alleged chatbots like ChatGPT and Character.AI exacerbated mental health issues, including teen suicides.

One high-profile case involved 16-year-old Adam Raine, whose parents sued OpenAI, claiming the chatbot advised on suicide methods. Similar suits targeted other platforms, highlighting risks for vulnerable users, including adults experiencing isolation or delusions.

Companies responded with updates: OpenAI enhanced distress detection and hotline referrals; Character.AI limited teen interactions; Meta planned parental controls for Instagram AI.

Experts like psychiatrist Marlynn Wei warn that chatbots may become primary emotional outlets, especially for youth, due to limitations like hallucinations and lack of clinical judgment.

Advocates push for stronger protections, but federal-state tensions complicate mandatory safeguards.

Massive spending fueled AI growth. Hyperscalers like Meta, Microsoft, Amazon, and Google poured over $300 billion into capital expenditures in 2025, with projections nearing $400-600 billion in 2026 for data centers and infrastructure. Global estimates suggest trillions by 2030.

This boom drove stock highs for AI leaders but raised bubble fears, as investments outpace proven returns. A concentrated ecosystem—companies trading resources among themselves—intensified scrutiny during earnings calls.

Experts like Christina Melas-Kyriazi note overbuilding is common in transformative tech, predicting volatility but potential corrections. Others, like Erik Brynjolfsson, foresee better metrics in 2026 tracking AI's productivity and job impacts.

Thousands lost jobs amid AI-driven restructuring. Amazon cut 14,000 corporate roles for efficiency; Meta trimmed its AI team post-hiring surge; Microsoft and others reduced staff partly due to automation.

AI contributed to tens of thousands of tech layoffs industry-wide. While some predict more cuts, others see new opportunities in AI-related roles.

LinkedIn's Dan Roth observed rapid changes in skill demands: “Jobs are evolving faster than ever, and acceleration continues.”

As 2026 approaches, AI's trajectory suggests deeper integration—with promises of innovation and warnings of disruption. The balance between progress and protection remains the central challenge.

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