The stock market doesn't like to dwell on artificial-intelligence safety fears too long.
That's a good thing. After OpenAI's decision to pause the training of its latest AI models sparked a sharp selloff Monday, investors might've expected the worst Tuesday after it scrapped the launch of one altogether.
But investors would've been wrong, and pleasantly so with several AI-related stocks booking substantial advances.
Bloom Energy, the supplier of power solutions for data centers, rose 14% to $300.13 and was one of the best-performing stocks in the S&P 500 for the trading session. That's quite the reversal in fortunes after Bloom Energy fell nearly 9% and was the S&P 500's worst performer on Monday.
One of the reasons for the sharp jump in the stock was that Fremont, Calif., home to Bloom Energy's current manufacturing site, said on LinkedIn that the company has purchased a 158,000-square-foot facility to expand its operations.
Morgan Stanley analyst David Arcaro said in a research note it's an indication of "continued strong demand" for Bloom Energy.
"Bloom has been very thoughtful about its intention to expand capacity, only committing to do so when demand requires it. We think the purchase of a new facility would represent another signal that the company is seeing strong customer demand and the need to accelerate its expansion plans," Arcaro said.
The analyst also noted that Ameren Corp., through its regulated electric utility in Missouri, late Monday recommended adding 500 megawatts of natural gas fuel cells through 2030.
"We would expect this to be an opportunity for Bloom, notably fairly near-term and within the baseline recommendation from AEE," Arcaro said.
Along with Bloom Energy stock, AI infrastructure provider Vertiv Holdings and memory chip maker Micron rose 3.5% and 2.5%, respectively.
The tech-heavy Nasdaq Composite was up 0.2%, outperforming S&P 500 and Dow Jones Industrial Average.
There isn't much room for nuance when it comes to knee-jerk stock market reactions. Both OpenAI developments are giving off the same signal-a threat to the assumption that the AI boom will continue to grow at a rapid pace.
The necessary damage was done Monday in response to that signal.
There's also a buzz ahead of OpenAI's developer conference later on Tuesday. A flurry of announcements could boost AI-related stocks. The 2026 DevDay will kick off with a keynote by CEO Sam Altman at 1 p.m. Eastern time.
It's also worth noting that the ChatGPT maker said it has other new models coming soon that do meet the safety bar.
"For anything regarding safety and alignment, there's a trade off. You really do need to find what's the right line between staying within scope, but also avoiding laziness in terms of how the model actually pursues tasks even when it hits friction," OpenAI's head of safety systems Saachi Jain said in an emailed statement to Barron's.
She added that the GPT-6.1 Astra model "didn't quite meet the bar" in terms of staying within scope and authorization and how it communicates back to the user.