Global technology stocks came under pressure as concerns over the pace of artificial intelligence development prompted leading industry executives to call for greater caution, raising questions about the sustainability of the sector’s massive investment cycle.
The sell-off spread across the technology industry, where companies are increasingly turning to debt and complex financing arrangements to support large-scale AI investments. The pressure comes as global borrowing costs remain elevated, with bond yields at multi-year highs.
Anthropic Chief Executive Dario Amodei called on AI companies to slow the pace of advances in model capabilities, citing growing concerns over the potential misuse of artificial intelligence. In an essay posted on social media on Saturday, Amodei warned of the risks associated with rapidly advancing AI systems.
Elon Musk, head of xAI, and OpenAI CEO Sam Altman also expressed support for Amodei’s position. Altman separately said OpenAI would not pursue an initial public offering this year, citing safety considerations.
The Nasdaq 100 fell 1.7 per cent in early trading, led by declines in semiconductor companies that have benefited heavily from the surge in AI investment.
“If this does lead to sort of a slowdown and a rethink of AI spending, that will have ramifications for the economy and some important sectors of the stock market, because essentially, we’ve been running hot based on AI spending,” said Steve Sosnick, chief market analyst at Interactive Brokers.
The Philadelphia Semiconductor Index dropped 6 per cent. Nvidia declined 3.5pc, Advanced Micro Devices fell 5.6pc and Micron Technology lost 6.7pc. SpaceX, led by Musk, also declined 2.5pc.
Shares of semiconductor equipment manufacturers Lam Research and Applied Materials dropped 8pc and 7pc, respectively. Energy and technology-related companies also came under pressure, with Bloom Energy falling 8.9pc and GE Vernova declining 7.6pc.
European technology stocks fell 2.3pc, with ASML down 6.7pc, while Infineon and Siemens Energy also recorded significant losses. In Asia, SoftBank fell as much as 13.2pc, while Taiwan Semiconductor Manufacturing Co (TSMC) and SK Hynix also declined.
Concerns about the potential dangers of AI intensified earlier this month after Anthropic researcher Jacob Coxon resigned, warning that some people developing advanced AI believe it could pose an existential threat within the decade.
Anthropic subsequently published a threat intelligence report detailing the alleged use of its Claude AI models in activities including weapons development, cyber operations, surveillance and fraud.
Despite calls for caution, some analysts believe the scale of planned AI investment makes a significant slowdown unlikely. Morgan Stanley analyst Brian Nowak has projected that global AI spending could exceed $1.2 trillion by 2027.
Deutsche Bank said the key issue was whether recent developments represented the beginning of a moderation in the unprecedented AI investment cycle. However, it said the intense competition among companies and governments made it difficult to expect major players to voluntarily reduce their efforts while rivals continued advancing.
Meanwhile, Anthropic is moving ahead with plans for a potential public listing, reportedly expected next month. Sources said the company is in discussions with Nvidia about becoming a major investor.
Japanese semiconductor manufacturer Kioxia Holdings is also considering raising at least $10 billion through a US listing of American depositary receipts, according to reports.
