Tech stocks were in the red late Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) falling 2.2% and the SPDR S&P Semiconductor ETF (XSD) dropping 3.8%.

The Philadelphia Semiconductor index lost 2.2%.

In corporate news, Wix.com (WIX) shares sank past 15% after its Q1 adjusted earnings fell short of analyst estimates.

Microsoft-backed (MSFT) OpenAI is set to buy former Apple (AAPL) design chief Jony Ive's Io Products startup, OpenAI said Wednesday. The Financial Times and other outlets said OpenAI will acquire the startup for about $6.5 billion. Microsoft shares were down 1%.

Google is rolling out an "AI Mode," which answers queries in a chatbot-style conversation, Alphabet Chief Executive Sundar Pichai said at a developers conference Tuesday. The option is being added as a tab within search and initially for US users. Alphabet shares climbed 3.3%.

Keysight Technologies (KEYS) lifted its full-year growth expectations and reported better-than-expected fiscal Q2 results. Its shares eased 0.2%.

Wolfspeed (WOLF) shares tumbled 62%. The compamy is preparing to file for bankruptcy in the coming weeks after rejecting creditor-led proposals to restructure its debt, which totals $6.5 billion, The Wall Street Journal reported Tuesday.