Robot stock traders lose $440,000,000 in 45 minutes, need someone to spell it out

Sharif Sakr
S. Sakr|08.03.12

Sponsored Links

Robot stock traders lose $440,000,000 in 45 minutes, need someone to spell it out

Humans never learn and apparently neither do robots. Autonomous trading AIs went on a spending spree at Knight Capital Group in New Jersey this week, buying up shares in everything from RadioShack to Ford and American Airlines (ouch) in a 45-minute frenzy of disobedience. The company tried to offload the unwanted stock, but discovered it was already nearly half a billion dollars in the red -- enough to wipe out its entire profit from 2011 and "severely impact" its ability to conduct business. If only it had protected itself with one of these.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Popular on Engadget