AI stocks tumble as tech leaders call for development slowdown

business technology artificial intelligence stock market

AI leaders from Anthropic, OpenAI, and SpaceX have called for a slowdown in the reckless development of artificial intelligence, citing fears that the technology could soon run out of control. Anthropic CEO Dario Amodei warned in a weekend essay against a race to the bottom, stating that the industry must slow the pace of improving AI model capabilities to prioritize safety over profits and prevent the potential destruction of humanity.

These warnings triggered a global sell-off in technology shares on Monday. In Asia, SoftBank, a major backer of OpenAI, saw its shares slump 13%, while the South Korean Kospi index dropped 3% due to its heavy reliance on chip makers that supply AI firms. European chip stocks followed this downward trend, mirroring the declines seen across Asian and U.S. markets.

In the United States, the Nasdaq slid 1% and stock futures fell sharply, led by tech stocks. Market anxiety was further exacerbated by concerns that most AI and AI-adjacent companies rely on debt and circular financing, leaving investors spooked as the industry faces growing pressure to address the risks of frontier AI technology.

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