Global AI Stocks Plunge Following Calls for Development Slowdown

Global stock markets experienced a sharp sell off in artificial intelligence and semiconductor shares after industry leaders called for a slowdown in the development of AI capabilities. The trend began after Anthropic CEO Dario Amodei published an essay urging a slower pace of advancement to prevent potential threats to humanity. This proposal received support from OpenAI CEO Sam Altman and xAI CEO Elon Musk. The market reaction was widespread: the Philadelphia Semiconductor Index fell 5.86 percent, while companies such as Nvidia, Intel, and Micron saw declines in the United States. In Japan, SoftBank shares tumbled as much as 13.2 percent, and in Europe, ASML and Nokia recorded significant losses. In South Korea, the KOSPI opened lower on Tuesday, though some semiconductor stocks like Samsung Electronics and SK Hynix showed mixed results as the morning progressed.

Analysts suggest the sell off is driven by fears that a slowdown in development will lead to reduced spending and lower returns on investment. Some experts also point to broader macroeconomic pressures, including rising U.S. bond yields reaching 5 percent and anticipation of a Federal Reserve rate decision. The debate over AI safety intensified following the resignation of Anthropic researcher Jacob Coxon, who expressed concern that the technology could kill humans by the end of the decade. Another researcher, Evan Hubinger, stated there is a probability higher than 10 percent that AI could kill all humans.

Political and international reactions to the slowdown call varied. Former U.S. President Donald Trump described AI critics as negative forces and emphasized the need for the U.S. to remain an industry leader. Meanwhile, China's state backed Global Times characterized the call for a slowdown as a Cold War playbook intended to curb China's technological growth. Some investors, including Michael Burry, dismissed the warnings as hype used to cover for a real slowing of growth.