Stock markets experienced significant declines on Monday following statements from chief executives of major artificial intelligence companies advocating for a deceleration in industry development. Nvidia, the world’s most valuable semiconductor company, saw shares fall 3.3%, while AMD dropped 4% and other chip manufacturers experienced steeper losses. The broader tech-heavy Nasdaq index declined 0.5% by market close.
The selloff was triggered by Anthropic CEO Dario Amodei’s weekend appeal for the AI industry to reduce its pace, citing concerns about reckless development and potential risks. Amodei warned that rapid advancement could result in hundreds of billions of dollars in damage if autonomous AI agents were to compromise internet infrastructure. The CEOs of OpenAI, Google DeepMind, and SpaceX all publicly endorsed Amodei’s essay on moderating frontier AI development. An Anthropic co-founder suggested that a third-party-controlled “kill switch” mechanism might be necessary to prevent catastrophic outcomes.
Government responses to the slowdown calls diverged sharply. The Trump administration rejected calls for increased AI regulation, with the president characterizing such efforts as a “sick conspiracy” and asserting that strong presidential oversight was the only necessary safeguard. Conversely, the UN Security Council scheduled a meeting on AI for the following week, and a cross-party group of UK lawmakers highlighted human rights risks from the technology, arguing that no nation had adequate legal frameworks to address them.
International concerns also mounted, with China’s top intelligence official warning that advanced US AI models posed risks to Beijing’s critical infrastructure. Meanwhile, stocks in companies threatened by AI advancement, such as advertising and analytics firms, rallied in response to news of a potential industry slowdown.
Industry analysts remained skeptical that the calls for moderation would significantly impact investment trajectories. Economists noted that intense competitive pressure between companies and countries would likely sustain heavy spending on AI infrastructure, despite public discussions of safety risks. Anthropic’s recent announcement that it would achieve profitability for a second consecutive quarter suggested continued business momentum in the sector.
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