AI Stocks Plunge Amid Safety Concerns and Rising Oil Prices
Artificial intelligence stocks took a hit globally as leaders in the industry warned of a potential slowdown due to safety concerns. Anthropic CEO Dario Amodei called for a deliberate and global slowdown in AI development, citing risks such as the ability of AI to take over the internet within six to 12 months.
Nvidia, which has seen its profits soar thanks to its chips being used to train AI models, was the largest weight on the market, falling 3.5%. Other major players like SpaceX and Softbank Group also took a hit, with losses of 1.7% and 10.7%, respectively.
The decline in AI stocks came as the price of oil reached $109.05 per barrel, its highest level since early July. The increase in oil prices is due to concerns over the global flow of oil, particularly after an attack on a Saudi pipeline last week. This has raised doubts that the US and Iran can reach an agreement to allow oil tankers to freely exit the Persian Gulf.
While the price of oil continues to rise, it's not all bad news for stocks. Several software companies, such as Intuit, Autodesk, and Adobe, saw gains despite the overall decline in the market. This is likely due to concerns that AI-powered competitors will undercut their businesses.