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AI Slowdown Fears Send Nvidia and Chip Stocks Lower
Several important AI companies warned that advanced artificial intelligence may be developing too quickly.
They said companies should slow down enough to study the risks and add safety checks.
Investors became worried that slower AI development could mean less spending on AI equipment and services.
As a result, shares of Nvidia, Intel and other chip companies fell.
The broader US stock market also moved lower.
The reports gave different numbers because some described prices at different points during the trading day.
Dario Amodei of Anthropic made the slowdown proposal.
Sam Altman of OpenAI supported it, while Elon Musk also said Amodei was right.
China disagreed with the idea, calling such concerns fearmongering.
US stocks fell on Monday after AI leaders urged a slower pace of advanced AI development.
Nvidia, Intel, AMD, Broadcom, Marvell Technology and CoreWeave traded lower, with reported declines varying during the session.
The Nasdaq fell between 1.05% and 1.7% in the reports, while the S&P 500 and Dow also declined.
Anthropic CEO Dario Amodei cited potential AI risks and called for stronger safeguards and a coordinated slowdown.
China rejected calls to slow AI development, while OpenAI CEO Sam Altman backed the proposal and postponed a possible IPO.
- Who
- Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman, xAI CEO Elon Musk, investors, and major AI and chip companies.
- What
- US and Asian stocks declined after AI leaders called for a slower pace of advanced AI development and additional safety measures.
- Where
- US and Asian financial markets, including Wall Street, South Korea and Japan.
- When
- Monday, September 14, following Amodei's proposal on Saturday.
- Why
- Investors feared that slower AI development could reduce corporate spending and weaken earnings expectations across the AI supply chain; broader caution also preceded a US Federal Reserve policy meeting.
Supporters of Slower AI Development
Opponents and Skeptics
Development pace
Supporters of Slower AI Development
Dario Amodei called for a coordinated slowdown so companies can better understand advanced AI risks; Sam Altman backed the proposal and Elon Musk said Amodei was right.
Opponents and Skeptics
China rejected calls to slow AI development, describing concerns about the pace of advancement as fearmongering and warning that confrontation could harm global AI governance.
Risk and safeguards
Supporters of Slower AI Development
Anthropic said it would add safeguards, including independent third-party evaluations, and Amodei warned that advanced systems could potentially cause extensive damage.
Opponents and Skeptics
US President Donald Trump downplayed growing concerns over AI risks, raising questions about how strongly industry leaders would pursue a slowdown amid competition with Chinese companies.
Market implications
Supporters of Slower AI Development
Investors worried that slower AI progress could reduce corporate spending and challenge earnings expectations across the AI supply chain.
Opponents and Skeptics
The AI investment theme has helped drive US markets to record highs, and major technology companies have reported strong results while committing billions of dollars to AI infrastructure.
Key facts
- Nvidia
- Reported declines ranged from 3.5% to 4.3%, with the stock reaching approximately $209-$208.93 during the session.
- Intel
- Reported declines ranged from 6.8% to 8%, with one report citing an intraday low of $94.52.
- Other affected stocks
- AMD, Broadcom, Marvell Technology, CoreWeave, Amazon and Tesla also fell; Marvell was reported down as much as 9.5%.
- US market indexes
- The reports put the Nasdaq's decline between 1.05% and 1.7%, the S&P 500's at 0.54%-0.6%, and the Dow's at 0.2%-0.3%.
- AI safety proposal
- Dario Amodei urged the industry to slow development of its most advanced models and proposed additional safeguards, including independent third-party evaluations.
- OpenAI IPO
- Sam Altman said OpenAI would not go public this year, citing a focus on safety.
- Asian markets
- South Korea's Kospi was reported down 3.3%, Japan's Nikkei 225 down 0.8%, and SoftBank shares down as much as 10.7%.
Quotes
Dario Amodei
CEO of Anthropic and advocate of a coordinated slowdown in AI development
“It's my worry that in 6-12 months such a swarm could be capable of taking over the entire internet”
NDTV
“Dario is right.”
livemint.com
Sources
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