AI Leaders Call for Slowdown, Tech Stocks Get Smoked as SoftBank Drops 12%

AI Leaders Call for Slowdown, Tech Stocks Get Smoked as SoftBank Drops 12%

Investors dumped AI-linked stocks after top executives called for slower development, with SoftBank taking its worst hit in nearly three months.

· 2 min read ·
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Global technology stocks tumbled Monday after the leaders of the world's biggest artificial intelligence companies urged the industry to slow down development of new models, citing safety concerns [240700][240718]. The sell-off hit AI-linked shares hard, with SoftBank Group posting its biggest drop in almost three months [240718].

The warnings came from Anthropic Chief Executive Officer (CEO) Dario Amodei and OpenAI CEO Sam Altman, who both called for a slower pace to allow more time to manage risks tied to artificial intelligence [240099][240717]. Amodei's statement followed an Anthropic report showing its models had been used to develop weapons, surveillance tools, and fraud [240099]. Elon Musk, who owns X, also agreed with the call [240099].

The appeal rattled markets already on edge. Stock futures fell as investors weighed AI safety worries, and the three major United States (U.S.) stock averages entered the week coming off a losing week [240590]. A jump in oil prices added to the pressure, weakening appetite for riskier assets [240700].

In China, shares closed lower Monday as selling pressure weighed on the market, marking a weak start to the week for mainland equities [240817]. The decline came despite Beijing's $54 billion capital injection into major banks and insurers, a move designed to strengthen their financial foundations [237616]. Investors were not reassured — shares of the targeted financial firms fell after the news, reflecting doubts about the plan's effectiveness [237616].

The AI jitters have spread beyond stock prices. JPMorgan stopped lending to Leopold Aschenbrenner's hedge fund, Situational Awareness, after the fund lost billions of dollars in an AI-related sell-off [238864].

The market's anxiety stands in contrast to some company results. Oracle's latest earnings report directly addressed major concerns about its AI spending, yet the stock still lost ground [239475]. Salesforce and Workday have also seen share prices fall on fears AI will replace traditional software, even as both companies continue to show financial strength [239530].

Sources

AI Stocks Tumble After Leaders Call for Slowdown #240700SoftBank shares plunge after AI leaders warn of risks #240718AI fears shake markets as stocks slide #240590Chinese Stocks Slide: Investors Pull Back to Start the Week #240817AI Leaders Demand Slower Development #240717Anthropic CEO calls for slower AI development #240099China injects $54 billion into banks and insurers—but stocks still slide #237616AI losses force JPMorgan to cut hedge fund lending #238864AI Fears Overblown? Salesforce, Workday Still Strong #239530Oracle Crushes AI Spending Fears, Yet Stock Still Falls #239475

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