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, global AI stocks experienced a sharp decline as leaders of major artificial intelligence companies expressed concerns over the risks associated with rapid technological advancement. This development marked a significant threat to the substantial investments pouring into the AI industry, which have driven world markets to unparalleled heights.
The market-wide sell-off was a direct consequence of the industry's growing reliance on debt and circular financing to fuel ambitious AI spending plans, despite escalating global borrowing costs, evidenced by multi-year-high bond yields.
Anthropic CEO Dario Amodei, in a detailed essay published on X over the weekend, advocated for a deceleration in the rate of AI model capabilities development due to mounting apprehensions about the potential misuse of artificial intelligence. His call for moderation was echoed by both Elon Musk, who heads xAI, and Sam Altman, CEO of OpenAI. Altman further disclosed that the company would postpone its initial public offering (IPO) this year, citing safety concerns as the primary reason.
The tech world's elite index, the Nasdaq 100, suffered a 1.2 percent drop, marking a six-week low in early trading. This decline was particularly pronounced among chip stocks, which had been the primary drivers of the AI boom. The repercussions of this market downturn underscore the precarious balance between the rapid advancement of AI technology and the need for responsible development practices.
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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