AI Development Slowdown Sinks NVIDIA Stock 3.1% in Pre-Market Trading

NVIDIA stock fell 3.1% in pre-market trading to $211.59 after AI industry leaders called for a slowdown in AI model development over the weekend.

Anthropic CEO Dario Amodei's essay, which drew support from Elon Musk, OpenAI CEO Sam Altman, and Microsoft CEO Satya Nadella, raised concerns about reduced demand for high-end GPUs that has driven NVIDIA's growth.

The semiconductor sector was hit hard by the news, with other chipmakers like Intel, AMD, and Micron also declining alongside NVIDIA.

NVIDIA is reportedly in talks to invest up to $10 billion in Anthropic, adding complexity to the situation as investors questioned the strategic rationale and potential capital allocation implications.