AI-linked shares fell across Asia and Europe and pointed lower in the United States after leading technology executives warned that artificial intelligence is advancing faster than safety measures can keep pace.
WEBDESK – MEDIABITES
SINGAPORE: Technology stocks fell across major markets on Monday after executives at some of the world’s leading artificial intelligence companies called for a slower pace of development, raising concerns among investors about the sustainability of the huge investment cycle built around AI.
The market reaction followed comments from Anthropic Chief Executive Dario Amodei, who urged AI companies to slow the advancement of increasingly powerful models, warning that the risks associated with rapid development could become difficult to control.
Amodei’s warning was backed by OpenAI Chief Executive Sam Altman and xAI founder Elon Musk, adding weight to concerns that the industry may need to place greater emphasis on safety before pushing AI capabilities substantially further.
The comments struck at an investment theme that has driven much of the gains in global technology markets since the launch of ChatGPT in 2022.
In Japan, the Nikkei 225 fell 1.61% in early trading, dragged lower by technology shares. SoftBank, a major investor in OpenAI, dropped by more than 11%, while semiconductor companies, including Kioxia and Tokyo Electron, also recorded sharp declines.
South Korea’s SK Hynix fell more than 6%, while Taiwan Semiconductor Manufacturing Co. declined. European technology stocks also weakened, with chip-equipment makers ASML and ASMI among the notable decliners.
In the United States, Nasdaq futures fell sharply before the market opened, while Nvidia and other major semiconductor companies came under pressure. Nvidia shares were down around 3% in premarket trading, while Advanced Micro Devices fell more than 5%, according to Reuters.
Investors are concerned that a coordinated slowdown in AI development could affect expected demand for chips, data centres, computing infrastructure and electricity, potentially challenging valuations that assume continued rapid expansion.
The concerns have also been amplified by recent reports of malicious uses of AI. Anthropic said its models had been used in activities including cyber operations, surveillance, fraud and weapons-related work, while former Anthropic researcher Jacob Coxon warned that some people developing advanced AI systems were deeply concerned about their potential consequences.
Altman has described the potential risks to humanity as unacceptable, while Amodei has argued that AI development should proceed quickly but with enough time for safety measures to catch up.
The debate is increasingly colliding with geopolitics. U.S. President Donald Trump has dismissed some of the more severe warnings about AI and said the United States must maintain its lead over China. A slowdown by American companies could therefore raise concerns that Chinese competitors might narrow the technological gap.
Some investors remain skeptical that the industry will voluntarily slow down while competition between companies and countries remains intense. Analysts also point to enormous capital commitments already made to AI infrastructure, making a sudden reversal difficult.
Still, Monday’s market reaction showed that investors are beginning to price in a new risk: AI may not simply be a race to build faster and more powerful systems, but a race to determine how quickly that progress can safely continue.
