Lucid's near-collapse and IBM's tumble are being read as warning signs that the AI spending boom may not pay off — bad news for investors betting on endless growth.

• Lucid stock crashed and trading was halted repeatedly after reports it was weighing bankruptcy; the EV maker denies it and says it has cash into next year.
• IBM stock dropped 23% after an earnings warning, as customers shift spending toward AI and away from older tech.
• The bigger worry: companies are spending $1.2 trillion a year on AI, and it's unclear when those bets turn a profit.
• A price war is crushing margins — one company sells AI access for a dollar while another charges 50 times more, so buyers pick the cheapest.
• Software makers like Salesforce and Adobe are falling as firms like Starbucks build their own AI tools instead of buying software.

Outlook: Expect more sudden scares like Lucid as investors start demanding real profits from cash-burning AI and EV companies.