AI-linked Asian stocks slump after top lab CEOs call for development slowdown

AI-linked Asian stocks experienced a decline on Monday following a call from top lab CEOs for a slowdown in artificial intelligence development. Dario Amodei, CEO of Anthropic, urged AI companies to reduce the rate of model advancement due to growing concerns over AI misuse. Elon Musk, who leads xAI, and Sam Altman, CEO of OpenAI, concurred with Amodei's stance. The sharp stock drop in early Asian trading prompted OpenAI to announce it would not proceed with an IPO this year, citing safety worries.

SoftBank, a major investor in OpenAI, saw its shares plummet by up to 13.2% during early trading in Japan. Memory chipmaker Kioxia and Tokyo Electron also faced significant declines of 9.8% and 3.7%, respectively. Taiwan Semiconductor Manufacturing Company (TSMC) in Taiwan fell by 1.2%, while SK Hynix in South Korea declined by 5.3% and Samsung Electronics dropped 3.7%.

Economist Takayuki Miyajima of Sony Financial Group attributed the selling pressure to the recent weekend comments advocating for a slower pace of AI development. Uncertainty surrounding the Middle East situation further dampened sentiment. In Shanghai, memory chipmaker CXMT dropped 2.7%, and Semiconductor Manufacturing International Corporation fell 1.4%.

Hong Kong experienced a similar trend, with Zhongji Innolight and Minimax both shedding 4.1% and 5.4%, respectively. Additionally, Z.ai, the developer of the GLM AI series, witnessed a sharp 10.5% decline following a discounted share placement. Anthropic, the parent company of Claude AI models, released a threat intelligence report on Thursday, revealing that various actors had exploited the models for purposes ranging from weapons development to cyber operations and fraud.

The growing alarm about potential AI-related harm intensified this week after Anthropic researcher Jacob Coxon resigned, stating that people involved in AI development genuinely believe the technology could lead to human extinction by the end of the decade. OpenAI's Altman expressed concern over the risks of AI-induced human extinction.

While US lawmakers have voiced concerns about AI's rapid progress and called for new regulations, US President Donald Trump disputed AI critics, likening them to "very negative forces" and emphasizing the need to maintain the US as an industry leader.

AI-related trades have significantly contributed to global equities' gains since OpenAI launched ChatGPT in 2022. However, recent cyberattacks by rogue AI agents and public discontent with data center construction have heightened opposition to the industry's development. AI safety discussions are anticipated between US and Chinese governments as part of ongoing bilateral talks this month.