Tens of billions of dollars wiped out from household name brands as obscure "penny stock" karaoke-vendor-turned-AI platform debuts "game-changing platform"

• Freight AI claims triggered a sharp market sell-off across trucking logistics shares
• Investors reacted strongly to automation fears as small AI firm surged in value
• Market anxiety around AI disruption spread beyond trucking into healthcare and publishing

Shares in trucking and logistics companies plunged after investors reacted sharply to claims made by a tiny AI firm about automation in freight operations.

Wall Street Journal reported the selloff "is one of the most extreme examples yet of the sell-now, ask-later ethos sweeping financial markets in the artificial-intelligence era."

The sell-off began after Algorhythm Holdings, once known for in-car karaoke products, said its SemiCab platform was helping customers scale freight volumes by 300% to 400% without adding staff.