AI-related stocks in global markets fell sharply on Monday. This decline followed warnings from prominent leaders of artificial intelligence companies about the risks posed by the rapid development of this technology. These warnings are seen as a serious threat to billions of dollars in investments in this industry, which has recently set records in global markets.
Impact on Markets and Financing Costs
This widespread sell-off in the AI industry, where companies are increasingly relying on debt financing and circular investments, has had an impact. With rising borrowing costs globally, which have peaked in multi-year bond yields, pressure on companies in this sector has intensified.
Dario Amodei, CEO of Anthropic, called for a slowdown in the advancement of AI model capabilities in an article published on social media platform X. He warned of potential abuses of this technology. Elon Musk, CEO of xAI, and Sam Altman, CEO of OpenAI, also agreed with Amodei. Altman also announced that the company has no plans for an initial public offering (IPO) this year due to safety concerns.
Market Volatility and Reactions
The Nasdaq 100 technology index fell 1.2% in early trading, reaching its lowest level in six weeks. Many chip stocks that were at the forefront of this AI boom experienced the largest declines. For example, the Philadelphia chip index dropped 5.1%, and companies Nvidia, AMD, and Micron fell by 3.6%, 5.6%, and 6%, respectively.
In Europe, the technology sector fell 2.2%, with a 5.9% drop in ASML and severe losses in Infineon and Siemens Energy companies impacting the market. In Asia, SoftBank's shares fell by up to 13.2%, and TSMC and SK Hynix also retreated.
Concerns about potential harms from AI peaked earlier this month when an Anthropic researcher named Jacob Coxon resigned, stating that "those developing AI seriously believe this technology could wipe us out by the end of the decade." A few days later, Anthropic released a report detailing the threats posed by its AI models.
Amodei further wrote that in the next six to twelve months, AI agents "could potentially take control of the entire internet and cause billions of dollars in damages." Meanwhile, Altman stated in an interview that the risks of human extinction due to AI are "unacceptable."
While some U.S. congressional representatives are concerned about the rapid advancement of AI and have called for new regulations, former U.S. President Donald Trump downplayed these concerns, claiming there is a "sick conspiracy" against AI and data centers.
