AI-related stocks experienced a significant downturn on Monday after leading figures in the artificial intelligence industry, notably Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman, advocated for a more measured pace in AI development. This call for a slowdown, driven by escalating concerns over the risks posed by rapidly advancing AI capabilities, has triggered investor anxiety regarding the future growth trajectory and adoption rates within the sector. The sell-off was widespread, impacting a range of companies from chip manufacturers to major tech firms.
In Asia, South Korean giants SK Hynix and Samsung Electronics saw their shares drop by over 6% and 4% respectively. SoftBank, a key investor in OpenAI, experienced a substantial 10% fall in Japan. European markets also felt the impact, with chip equipment manufacturer ASML declining by more than 4%, Nokia down approximately 5%, and Infineon dropping over 6%. Companies involved in data center infrastructure, such as Siemens Energy and Schneider Electric, also saw their stock prices decrease. In premarket trading in the U.S., memory chipmaker Micron was down around 5%, Intel nearly 6%, and Nvidia more than 2%, while hyperscalers like Microsoft, Amazon, and Alphabet also edged lower.
The industry's push for a slowdown intensified following recent warnings from AI researchers, including Jacob Coxon and Evan Hubinger from Anthropic, who expressed grave concerns about existential risks posed by AI. Amodei's essay urging a slower pace was met with agreement from OpenAI's Altman and SpaceX CEO Elon Musk, among others. While Amodei and Altman clarified that "pacing" does not mean a complete halt to progress, but rather a more deliberate approach with significant safety interventions, investors remain concerned about the potential impact on the hundreds of billions of dollars in capital expenditure directed towards AI development.
Financial analysts are noting the potential long-term effects. Zoe Gillespie, a senior director at RBC Brewin Dolphin, commented that the equity market rally has largely been predicated on AI growth and productivity gains, and any derailment could significantly impact future equity performance. Ben Barringer, global head of technology research at Quilter Cheviot, however, suggested that while training and rollout might slow, demand for AI inference (the running of AI models) still far outstrips supply, potentially mitigating the impact on company revenues.
