Key facts
- AI leaders including Anthropic, OpenAI, and Google DeepMind endorsed slowing AI development.
- Goldman Sachs warned AI safety pledges could lead to a 15-20% downside to the S&P 500's valuation multiple.
- Nvidia, Microsoft, Alphabet, Amazon, and Meta represent approximately 24% of the S&P 500 benchmark.
- SoftBank, an investor in OpenAI, saw its shares slump 13% on Monday.
- The South Korean Kospi stock index fell 3%, while Taiwan Semiconductor Manufacturing shares dropped 2%.
Tech stocks globally declined on Monday as prominent AI leaders called for a slowdown in the development of advanced artificial intelligence due to safety concerns. The calls have raised fears that the rapid pace of AI progress could lead to significant financial and societal risks.
Goldman Sachs warned that these safety pledges could result in a 15-20% downside to the S&P 500's valuation multiple. Major technology companies heavily invested in AI, such as Microsoft, Amazon, Alphabet, and Meta, are projected to spend a combined $735 billion on AI data center infrastructure in 2026. These companies, along with Nvidia, represent approximately 24% of the S&P 500 index, making them highly sensitive to shifts in AI investment and regulation.
In response to the calls for a slowdown, shares in AI-linked companies experienced declines. SoftBank, a significant investor in OpenAI, saw its shares slump by 13%. The South Korean Kospi stock index, which is heavily reliant on chipmakers supplying AI firms, dropped by 3%. Taiwan Semiconductor Manufacturing Company, a major global microchip supplier, fell by 2%. Nvidia was down 3% in premarket trading, while Alphabet was off 0.7%. Nasdaq 100 futures pointed to a 1.6% decline at the open.
Anthropic CEO Dario Amodei urged AI companies to slow the "reckless" pace of development, warning that increasingly capable AI agents could eventually cause severe economic damage. The call was supported by OpenAI CEO Sam Altman, Google DeepMind CEO Demis Hassabis, and SpaceX boss Elon Musk. Jacob Coxon, a former researcher at OpenAI and Anthropic, resigned last week, stating the rival labs were "gambling with our lives" in their race to build self-improving AI.