Global AI stocks fall as industry chiefs call for slowing development
AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of risks from rapid development, the starkest threat yet to the billions of dollars being poured into the industry that have driven world markets to record highs. The selloff rippled through the industry, where companies are increasingly relying on debt and circular financing to fund…
On Monday, the global value of AI-linked stocks took a significant plunge as prominent figures in the artificial intelligence industry voiced their concerns about the dangers of rapid development. The sharp sell-off serves as a stark warning to the vast amounts of capital being invested in the sector, which has propelled worldwide markets to record highs.
The decline in AI stocks was widespread, reflecting the increasing reliance of companies on debt and circular financing to sustain their ambitious AI spending plans. This trend is further exacerbated by the surge in global borrowing costs, evident through multi-year-high bond yields.
Anthropic CEO Dario Amodei penned a lengthy essay on X, urging AI companies to temper the pace of model capability advancements in the face of mounting apprehensions over the misuse of artificial intelligence. Elites in the industry, including Elon Musk, who leads xAI, and Sam Altman, CEO of OpenAI, echoed Amodei's sentiment. Altman also revealed that the company would postpone its IPO plans for this year, citing safety concerns as a primary motivation.
The Nasdaq 100, Wall Street's premier tech index, experienced a 1.2 percent drop, reaching a six-week low in early trading. This decline was particularly pronounced among chip stocks, which have been the primary catalyst behind the AI boom.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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