Global technology stocks faced a sharp decline on Monday following calls from leading artificial intelligence executives to slow down the rapid development of AI amid concerns over safety and potential risks. The sell-off began in the United States and spread to markets across Asia and Europe, signaling investor apprehension about the immediate commercial prospects of AI infrastructure.
In the U.S., the tech-focused Nasdaq Composite index fell by around 1.2 percent in early trading before partially recovering. The Philadelphia Semiconductor Index, which tracks chipmakers vital to AI hardware, dropped nearly 6 percent. Major companies such as Nvidia, Micron Technology, and Advanced Micro Devices all saw their shares decline between 3 and 6 percent. Similarly, Japan’s SoftBank experienced a significant loss, falling more than 10 percent, contributing to a modest decline in the Nikkei 225 index by 0.8 percent.
South Korea’s Kospi index, heavily influenced by semiconductor manufacturers Samsung Electronics and SK Hynix, declined by over 3 percent, with chipmakers dropping between 4 and 6 percent. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, also saw its shares fall by 1.2 percent. European markets mirrored this trend, with semiconductor companies like ASML of the Netherlands and Germany’s Infineon dropping sharply. Despite these losses, the UK’s FTSE 100 index rose slightly, buoyed by oil majors BP and Shell, as investors rotated away from AI-focused stocks toward more traditional sectors.
The sell-off followed weekend statements from Anthropic CEO Dario Amodei, who warned that unchecked AI development could lead to advanced AI agents potentially seizing control of the internet within six to twelve months, causing significant global disruption. Amodei called for a coordinated slowdown in AI progress to reduce the risk of “something going seriously wrong.” His concerns were echoed by Sam Altman of OpenAI and Elon Musk of xAI, who publicly supported the call for more cautious advancement. OpenAI’s CEO also announced the company would delay plans for an initial public offering, citing safety concerns related to AI development.
These warnings were amplified by recent criticism from Jacob Coxon, a former senior safety researcher at Anthropic, who abruptly resigned and accused the industry of reckless behavior and racing toward uncontrollable, self-improving superintelligence with potentially dangerous capabilities.
While some market observers and industry figures suggested that the calls for moderation might reflect strategic positioning ahead of market moves, others acknowledged the lack of established safety benchmarks and regulatory frameworks could contribute to ongoing volatility in tech stocks. Investor reactions highlighted growing tensions between the economic potential of AI and the broader concerns about its long-term implications.
Meanwhile, political voices, including former U.S. President Donald Trump, pushed back against the calls for a slowdown, framing AI advancement as a critical driver of economic leadership and warning against giving competitors like China an advantage.
As uncertainty persists over how swiftly AI development will proceed, markets may continue to experience fluctuations, reflecting a broader reassessment of the balance between innovation and safety in the rapidly evolving technology landscape.