Key facts
- AI stocks fell globally Monday due to calls for a development slowdown.
- Anthropic CEO Dario Amodei cited AI safety risks, including potential internet takeover within six to 12 months.
- Nvidia sank 3.5%, weighing on the market.
- SpaceX fell 1.7% after Elon Musk agreed with Amodei's call for a slowdown.
- Softbank Group lost 10.7% in Tokyo after OpenAI's Sam Altman supported a slowdown.
- The yield on the 10-year US Treasury note reached 5%.
AI stocks experienced a global downturn on Monday, influenced by prominent industry figures advocating for a slowdown in development due to safety concerns. Anthropic CEO Dario Amodei warned that AI could become capable of taking over the entire internet within six to 12 months if development continues unchecked.
Elon Musk, CEO of SpaceX, echoed these sentiments over the weekend, agreeing with Amodei's call for a pause. Softbank Group, a significant investor in OpenAI, saw its shares drop 10.7% in Tokyo after OpenAI's Sam Altman also voiced support for a slowdown. Altman further indicated that OpenAI might postpone its Wall Street stock sale until next year, potentially delaying a cash influx for early investors.
In South Korea, the Kospi index fell 3.3%, largely due to losses in its two most influential companies, Samsung Electronics and SK Hynix. Meanwhile, the yield on the 10-year US Treasury note climbed to 5% for the first time since 2023, driven by rising oil prices and inflation concerns. Brent crude oil prices increased by 4.2% to $109.05 per barrel, partly due to an attack on a key Saudi oil pipeline that will be out of service for weeks, impacting global oil flow and potentially rerouting exports away from the Strait of Hormuz.
Despite the pressure on AI and tech stocks, some companies like Intuit, Autodesk, and Adobe saw gains. Oil industry stocks also rose, with ExxonMobil climbing 1.3%. US President Donald Trump, however, downplayed the need for government oversight on AI development, emphasizing the importance of maintaining America's competitive edge over China.