Global AI stocks slide as warnings over rapid development trigger investor concerns
Global AI stocks plunged Monday after industry leaders urged slower development. Warnings from Anthropic, OpenAI, and xAI leaders sparked investor concerns. This led to significant declines in major chip and technology companies worldwide. The calls raised questions about continued massive investments in the sector. Investors remain divided on the long-term impact of these warnings.
AI-linked stocks across global markets plummeted on Monday after leaders from major artificial intelligence companies called for a more measured approach to development, raising doubts about the sector's massive investments that have fueled its rally. Anthropic CEO Dario Amodei, supported by OpenAI CEO Sam Altman and xAI chief Elon Musk, warned of the potential for AI models to cause hundreds of billions in damage within six to 12 months, citing growing concerns over misuse and the control of increasingly powerful systems.
Nasdaq e-mini futures dropped 1.9%, while chip stocks endured significant declines, with Nvidia down 3%, Advanced Micro Devices falling 5.7%, and SpaceX dropping 2.6%. European technology stocks also suffered a 2.5% drop, with ASML tumbling 5.8%, Infineon dropping 8.4%, and Siemens Energy losing 7.4%. Asian AI-linked stocks were pressured as well, with SoftBank falling 13.2%, Taiwan Semiconductor Manufacturing Company declining 1.2%, and South Korea's SK Hynix falling 6.3%.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
