AI-linked stocks experienced a significant downturn on Monday after leaders from Anthropic, OpenAI, and SpaceX advocated for a slowdown in what they described as 'reckless' AI development. The call for caution, driven by concerns that unchecked AI growth could spiral out of control, sent ripples through global markets.
In Japan, shares of SoftBank, a major investor in OpenAI, plummeted 13%. Meanwhile, South Korea's Kospi index, heavily reliant on chip manufacturers supplying AI firms, saw a 3% decline. Taiwan Semiconductor Manufacturing Company, a key player in the microchip industry, also faced a 1.2% drop. Futures for the Nasdaq indicated a potential 1.3% decrease when the U. S. market opens later today.
Across Europe, ASML, the continent's largest tech company by market value and a crucial supplier to the semiconductor sector, witnessed its shares fall by up to 5.4% during morning trading. However, not all sectors suffered. Companies previously threatened by AI advancements, such as advertising giant WPP and analytics firm Relx, saw their shares rise by 3.1% and 4.2%, respectively.
The market volatility followed an appeal from Dario Amodei, CEO of Anthropic, who urged the AI industry to decelerate its pace. Amodei warned that rapid development could lead to AI systems causing extensive damage by potentially dominating the internet. His concerns, though contested by some experts, prompted investors to reassess the financial landscape, factoring in a potential slowdown that could complicate funding for AI infrastructure investments.
Amodei's essay, titled 'We Must Pace the Frontier, ' received backing from prominent figures such as OpenAI's Sam Altman, Google DeepMind's Demis Hassabis, and SpaceX's Elon Musk. Altman expressed his commitment to integrating external evaluators within OpenAI to ensure safety protocols are upheld.
As the debate over AI regulation intensifies, a cross-party group of MPs and peers highlighted a series of human rights risks associated with AI, noting that no nation currently possesses adequate legislation to address these challenges. In China, top intelligence official Chen Yixin cautioned that adversarial use of AI could jeopardize the country's political and social security. He specifically pointed to advanced U. S. models like Anthropic's Mythos and OpenAI's GPT-5.5-Cyber as potential threats to Beijing's critical information infrastructure.
Despite these warnings, former U. S. President Donald Trump dismissed the notion of slowing AI development. Over the weekend, he emphasized America's leadership in AI, stating, 'We’re leading China in AI. We’re the most sophisticated country in the world and frankly, I want to keep it that way because whoever wins AI, wins.'
Industry analysts, including Jim Reid of Deutsche Bank, remain skeptical about a significant reduction in AI investments. Reid noted the fierce competition within the sector, suggesting that companies are unlikely to voluntarily scale back while their rivals continue to advance. 'It is hard to see China standing still, ' he remarked, adding that discussions about AI risks might serve to underscore the transformative potential of the technology and promote the power of their products.
