AI Stocks Plummet as Industry Leaders Call for Development Slowdown Amid Safety Concerns
Global AI stocks plummeted Monday after industry leaders urged a slowdown in development due to safety concerns. The warning came from Anthropic CEO Dario Amodei, who said that unchecked AI could lead to catastrophic consequences, including the takeover of the internet by autonomous agents within six to 12 months.
Nvidia, a key player in the AI chip market, lost 3.4% and was the biggest weight on the market due to its massive size. Other affected companies include SpaceX, which fell 2%, and Softbank Group, which dropped 10.7% after OpenAI's Sam Altman supported Amodei's call for a slowdown.
The AI sector has been under pressure lately due to fears that prices rose too high during the technology frenzy. However, gains in other stocks helped limit market losses on Monday, with the S&P 500 falling only 0.5%. Intuit, Autodesk, and Adobe all rose after touting their resilience against potential AI-powered competitors.
Meanwhile, oil prices continued to climb due to ongoing conflicts in the Middle East, which have disrupted global crude supplies. The price of Brent crude hit $105.68, with experts warning that this could lead to further inflationary pressures and a higher interest rate hike from the Federal Reserve on Wednesday.