Key facts
- AI-linked stocks declined Monday after tech leaders urged a slowdown in AI development.
- Nvidia, AMD, Micron, and Sandisk shares fell, contributing to a 0.5% drop in the Nasdaq Composite.
- Anthropic CEO Dario Amodei warned that rapid AI development is reckless and could lead to catastrophic damage.
- OpenAI, Google DeepMind, and SpaceX executives supported the call for a slower pace of AI advancement.
- Concerns over AI risks and regulation were highlighted by UK MPs and China's top intelligence official.
- President Donald Trump dismissed calls for AI controls as a "sick conspiracy" and a "hoax."
AI-linked stocks declined on Monday as prominent figures in the technology sector urged a pause in the rapid development of artificial intelligence, citing potential risks.
Anthropic CEO Dario Amodei spearheaded the call for a slowdown, warning that "building too fast is reckless" and that advanced AI could pose catastrophic threats, including the potential for AI agents to "take over the entire internet." His essay, "We Must Pace the Frontier," garnered support from OpenAI CEO Sam Altman, Google DeepMind chief Demis Hassabis, and SpaceX boss Elon Musk. Altman also committed to embedding outside evaluators within OpenAI to verify safety practices, while Anthropic co-founder Jack Clark suggested a third-party-triggered "kill switch" might be necessary.
The concerns come amid growing international apprehension about AI's pace and lack of regulation. A cross-party group of UK MPs and peers identified significant human rights risks, stating that current laws are insufficient. Similarly, China's top intelligence official, Chen Yixin, warned that advanced US AI models could threaten the country's political and social security and critical infrastructure.
However, US President Donald Trump dismissed these calls as a "sick conspiracy" and a "hoax," asserting that the US has a "STRONG AND SMART" president to manage AI. He suggested that the focus should be on strong leadership rather than controls, and that China benefits from such discussions.
The market reaction saw shares in key AI-related companies fall. Nvidia, the world's most valuable company, dropped 3.3%, while Advanced Micro Devices (AMD) slid 4%, and Micron Technology and Sandisk shares slumped 5%. The tech-heavy Nasdaq index fund closed down 0.5%. Other affected companies included SoftBank, a major investor in OpenAI, which fell 13%, and chip suppliers Taiwan Semiconductor Manufacturing Company, down 1.2%, and ASML, down 6%. Conversely, companies potentially benefiting from AI, such as advertising group WPP and analytics business Relx, saw their shares rise 5%.
Despite the calls for caution, Jim Reid of Deutsche Bank noted that intense competition in the AI sector makes a voluntary slowdown unlikely, suggesting that any increased investment in safety and governance would likely occur alongside continued build-out of compute infrastructure. Reports also indicate that Anthropic is on track to be profitable this quarter, a significant milestone as it prepares for a US stock market listing.