AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of potentially existential risks from the technology, shaking confidence in the industry, whose vast infrastructure spending has driven world stock markets to record highs.<\/p>\n
The selloff rippled through the industry, where companies are increasingly relying on debt and circular financing\u00a0to fund ambitious AI spending plans even as global borrowing costs, reflected in multi-year-high bond yields, continue to rise.<\/p>\n
Anthropic CEO Dario Amodei, in a lengthy essay\u00a0shared on X on Saturday, called on AI companies to slow the rate at which they advance model capabilities amid mounting fears AI could be misused. Both Elon Musk, who runs xAI, and Sam Altman, CEO of OpenAI, said they agree with Amodei.<\/p>\n
Altman also said the company would not proceed with an IPO this year, citing safety concerns.<\/p>\n
Wall Street’s major tech index, the Nasdaq, slid -1.2% to a six-week low in early trading as chip stocks, which have led the AI rally, fell the most, although it pared losses in the early afternoon and was last down -0.4%.<\/p>\n
“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.<\/p>\n
The Philadelphia chip index dropped -5.2%, with Nvidia down -3%, Advanced Micro Devices off -4.5% and Micron\u00a0falling -5.4%.<\/p>\n
Semiconductor equipment makers Lam Research,\u00a0Applied Materials and tech utility Bloom Energy lost more than -6% each.<\/p>\n
Earlier in the day, Europe’s tech sector fell -2.2%, dragged by ASML’s -6% decline, alongside steep losses in Infineon and Siemens Energy, while in Asia, SoftBank plunged more than -10% and chipmakers TSMC and SK Hynix also retreated.<\/p>\n
– Reporting by Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of potentially existential…\n","protected":false},"author":2,"featured_media":892296,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[2001,64,63,166,2009,99,2003,2005,160,2010,171,2007,2006,2008,2002,2004,1491],"class_list":["post-892295","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-asx","tag-au","tag-australia","tag-australian-dollar","tag-bitcoin","tag-business","tag-dollar","tag-dow-jones","tag-live-blog","tag-live-update","tag-markets","tag-nasdaq","tag-nyse","tag-sp","tag-share-market","tag-stocks","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/892295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=892295"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/892295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/892296"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=892295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=892295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=892295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}