- Asian AI-linked stocks faced heavy selling pressure after AI leaders urged slower development pace
- SoftBank shares dropped up to 13.2%, while Kioxia fell nearly 9.8% in early trading
- Anthropic CEO Amodei called for a slowdown, backed by OpenAI's Altman and xAI's Musk
Asian AI-linked stocks came under heavy selling pressure on Monday after leading artificial intelligence executives called for a slower pace of development amid growing concerns over the technology's safety and potential misuse.
SoftBank Group, a major investor in OpenAI, and memory-chip maker Kioxia were among the biggest decliners. SoftBank shares fell as much as 13.2% in early trading, while Kioxia initially dropped 9.8%.
Altman, Musk Back AI Development Slowdown
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The sell-off followed comments from Anthropic CEO Dario Amodei, who called on AI companies to slow the pace at which they improve their models amid mounting concerns over misuse.
OpenAI CEO Sam Altman and xAI chief Elon Musk backed Amodei's call. Altman said the risks posed by AI to humanity were “unacceptable” and indicated that companies needed to pace the development of frontier AI models.
Altman also said OpenAI would not proceed with an initial public offering this year, citing safety concerns. The development adds another layer of uncertainty for SoftBank, which is a major investor in OpenAI.
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AI And Semiconductor Stocks Slide
Most AI stocks have been trading lower in today's session, with SoftBank down nearly 12% and Kioxia down more than 6% from its previous close, currently at around 11.20 am (IST).
The concerns spread beyond SoftBank and Kioxia, hitting companies across the AI and semiconductor supply chain.
Tokyo Electron fell 3.7% in early trade, and currently, trading flat at JPY 51,240, down 0.43%. SK Hynix is down around 5.4% while Samsung Electronics declined around 4%.
The latest decline comes as AI-linked stocks face increasing scrutiny over safety, regulation and the broader social impact of rapid technological progress. Reuters also reported that the US and Chinese governments are expected to hold AI safety discussions as part of bilateral talks this month.
ALSO READ: China Spy Chief Warns Of AI Risks As Anthropic CEO Urges Brakes
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