AI development slowdown fears sent global technology stocks tumbling on Monday, after prominent figures in the artificial intelligence industry urged the sector to pause and let safety measures catch up with the pace of change. The tech-focused Nasdaq 100 index, which tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange, fell by about 1.2% during Monday afternoon trading on Wall Street.
The sell-off began after a weekend in which Dario Amodei, boss of AI company Anthropic, published an essay arguing that AI was “advancing drastically faster” since the summer and that urgent action was needed. Elon Musk and Sam Altman, leader of OpenAI, both backed Amodei’s call for the industry to “slow down.”
What Amodei actually said
The essay made stark reading for anyone tracking how quickly AI is developing. According to AP News, Amodei warned that within six to 12 months AI could be capable of leading a swarm of automated agents able to take over the entire internet. That is a more specific and alarming timeframe than his essay’s general concern about the technology’s speed of progress.
Amodei did not stop at sounding the alarm. The New York Times reports that he called for independent auditors to check AI companies against safety standards, and urged global cooperation in creating rules around AI development. That combination of a dramatic warning and a concrete regulatory proposal gave the essay considerably more weight than a general call for caution.
Donald Trump responded on Monday, criticising what he described as a “sick conspiracy” against AI and data centres, and pushing back against calls for greater regulation.
The market reaction to AI development slowdown fears
Chip companies bore the brunt of the sell-off, given that demand for their products is tied directly to how fast AI systems are built and expanded. Nvidia, one of the leading suppliers of AI chips, fell by about 3%. Semiconductor maker Micron Technology dropped by about 5%, and Intel shares were down by more than 6%. Elon Musk’s rocket company SpaceX also slipped by about 1% in morning trading in New York. Losses had already been building overnight, with tech and AI stocks on Asian markets falling ahead of the Wall Street open.
Ben Barringer, head of technology research at Quilter Cheviot, offered a measured view of what is driving Amodei’s intervention. He said Amodei may wish to be seen as leading the debate around the responsible use of AI. “The company is also in IPO mode so Amodei will want to show the company is a good steward of investors’ capital, while there may also be an element of looking to push a fresh regulatory agenda and push for more controls that may ultimately be beneficial for Anthropic.”
An IPO, or initial public offering, is when a private company lists its shares on a public stock market for the first time, allowing outside investors to buy in. Anthropic is preparing to do exactly that, in what is anticipated to be one of the world’s largest such listings.
Barringer acknowledged the market unease but kept his longer-term view steady. “Regardless of this, it has clearly spooked the market that the pace of change may slow. However, while things may slow somewhat, the pace of change is still going to be vast. Demand still far outstrips supply, so even if things are to slow a little, company revenues are unlikely to be impacted.“
That gap between short-term market anxiety and longer-term demand fundamentals is the core tension the Amodei essay has exposed. AI chips are still being ordered faster than they can be manufactured. Whether a regulatory push, an auditing regime, or international rule-making would actually change that supply-demand picture remains, for now, an open question the industry and its investors are actively debating.
Amodei’s call for independent auditors and global regulatory cooperation, reported by the New York Times, sets a concrete agenda. If policymakers take it up, the shape of that response is the next thing markets will be watching.
