# AI Updates: Stock Selloff, Texas Data Centers, and OpenAI's Linux Exploit Test The November 5 AI stock drop was driven mainly by fear of political limits on data-center building, not weak earnings. Share prices moved far more than AI… **Published:** 2026-11-06 · **Author:** Yash Thakker **Source:** https://explainx.ai/newsletter/ai-updates-stock-selloff-texas-data-centers-and-openais --- > **In short:** The November 5 AI stock drop was driven mainly by fear of political limits on data-center building, not weak earnings. Share prices moved far more than AI prices or demand did, so avoid big decisions based on one day. ## Markets Meet Politics ### AI Stocks Crash: Why Nvidia, Micron, AMD and CoreWeave Fell on Nov 5 AI-linked stocks fell hard on November 5. The Nasdaq dropped 3.9% into a correction, and chip, memory and cloud-computing shares fell most. CNBC links the fall to fear that new political leaders will slow data-center building, not to bad earnings. Nothing has become law yet, and our post calls it a correction, not proof of a burst. **What you can do:** Do not change your tools because of a share price. If you rent computing power from a small cloud firm, ask how it is funded and keep a backup. [Source](https://explainx.ai/blog/ai-stocks-crash-nov-5-2026-nvidia-micron-amd-coreweave-why-data-center-midterm-fears-bubble-2026) ## AI News Briefs ### Hinojosa and Texas Data Centers: Can Permitted Projects Finish Through 2028? A viral post says Texas governor-elect Gina Hinojosa will let permitted data centers finish through 2028. We could not find her saying that. She did pledge a pause on new approvals until lawmakers act, and she takes office January 19. An analyst expects permitted projects to proceed. [Source](https://explainx.ai/blog/texas-hinojosa-permitted-data-centers-finish-through-2028-new-permits-taxes-union-labor-claimed-vs-verified-2026) ### OpenAI Pipeline Found 948 Linux Kernel Root Exploits for $1.2M in API Credits OpenAI says an agent system, built on an unreleased cyber model, reproduced 1,724 Linux kernel bugs and built 948 working root exploits. Root means full control of a machine. The run cost about $1.2 million in API credits. The figures come from OpenAI alone, and humans reviewed results before reporting. [Source](https://explainx.ai/blog/openai-linux-kernel-948-local-privilege-escalation-exploits-1-2-million-api-cost-pipeline-patch-the-planet-2026) ### Tencent Hy4 Launches: 770B Model With Vision and Computer Use, Weights Still Pending Tencent released the full Hy4 on November 4. It is a 770-billion-parameter model that now understands images and can operate a computer. On Tencent's own tests it ranks second to fourth of seven models. The downloadable weights are still only planned. [Source](https://explainx.ai/blog/tencent-hy4-official-release-770b-vision-computer-use-terminal-bench-44-4-weights-planned-2026) ## One Useful Idea ### Build Your Own Personal AI System: The Complete 2026 Guide to Local Models and Workflows A local AI system runs on a computer you own, so a price rise, usage limit or outage cannot cut you off. The guide says an entry setup costing $600 to $1,200 can handle everyday jobs such as drafting email and answering questions about documents. Ollama is the easiest start, and LM Studio offers a visual app. **What you can do:** Pick one routine task, such as drafting email, and list what you would do if your AI service stopped tomorrow. Then see whether a local model could cover it. [Source](https://explainx.ai/blog/build-personal-ai-system-local-workflow-2026) ## Upcoming Workshops ### Grok Bot & 24/7 AI Agents: Duet, Dots and Muse, compared ![Grok Bot & 24/7 AI Agents: Duet, Dots and Muse, compared](https://explainx.ai/workshops/covers/square/grok-bot.webp) *Live workshop · Nov 7, 2026* A free 90-minute live session for people curious about always-on AI agents. You see what Grok Bot is, watch a daily-briefing routine built on screen, set safety rules first, and compare it with Claude Duet, ChatGPT dots and Meta Muse. [Source](https://explainx.ai/workshops/grok-bot) ### Claude for Work: Become Your Team’s AI Person ![Claude for Work: Become Your Team’s AI Person](https://explainx.ai/workshops/covers/square/claude-for-work.webp) *Live workshop · Nov 28–29, 2026* Two live evenings for non-technical professionals who want to use Claude well at work. You build a knowledge base, a reusable prompt library and an agent skill, try Artifacts, and connect Claude to the apps you use. [Source](https://explainx.ai/workshops/claude-for-work) ## Reader poll Does a one-day fall in AI stocks change what you think about AI? - Yes, I am more cautious now - No, one day means little - Not sure, or I do not follow markets ## Sources - [AI Stocks Crash: Why Nvidia, Micron, AMD and CoreWeave Fell on Nov 5](https://explainx.ai/blog/ai-stocks-crash-nov-5-2026-nvidia-micron-amd-coreweave-why-data-center-midterm-fears-bubble-2026) - [Hinojosa and Texas Data Centers: Can Permitted Projects Finish Through 2028?](https://explainx.ai/blog/texas-hinojosa-permitted-data-centers-finish-through-2028-new-permits-taxes-union-labor-claimed-vs-verified-2026) - [OpenAI Pipeline Found 948 Linux Kernel Root Exploits for $1.2M in API Credits](https://explainx.ai/blog/openai-linux-kernel-948-local-privilege-escalation-exploits-1-2-million-api-cost-pipeline-patch-the-planet-2026) - [Tencent Hy4 Launches: 770B Model With Vision and Computer Use, Weights Still Pending](https://explainx.ai/blog/tencent-hy4-official-release-770b-vision-computer-use-terminal-bench-44-4-weights-planned-2026) - [Build Your Own Personal AI System: The Complete 2026 Guide to Local Models, Frameworks, and Workflows](https://explainx.ai/blog/build-personal-ai-system-local-workflow-2026) - [Grok Bot & 24/7 AI Agents (Duet, Dots, Muse) — Free Live Session](https://explainx.ai/workshops/grok-bot) - [Claude for Work](https://explainx.ai/workshops/claude-for-work) --- From [explainx.ai](https://explainx.ai/newsletter). 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