AI Stocks Plunge as Industry Leaders Call for Global Slowdown

Artificial intelligence (AI) stocks plummeted globally on Monday after leaders of the industry called for a deliberate and global slowdown in AI development. The concerns were sparked by warnings from Anthropic CEO Dario Amodei, who cited safety issues, including the risk that AI becomes capable of leading a swarm of agents that could take over the entire internet within six to 12 months.

Nvidia sank 2.8% and was the heaviest weight on the market due to its massive size, while Softbank Group lost 10.7% in Tokyo after OpenAI's Sam Altman supported the concept of a slowdown.

However, gains for several software companies helped limit Wall Street's losses, with Intuit rising 4.8%, Autodesk climbing 7.8%, and Adobe adding 4.6%. The Dow Jones Industrial Average was down 16 points, or less than 0.1%, as of 1:06 p.m. Eastern time.

The decline in AI stocks comes amid a broader market downturn, with the S&P 500 falling a relatively modest 0.2% and the Nasdaq composite 0.2% lower after clawing back most of an early loss of 1.3%. Rising oil prices also contributed to the market's losses, with Brent crude rising 0.8% to $105.45.