Artificial intelligence security warnings trigger sell-off in global stock markets
Security warnings from executives of leading artificial intelligence companies and OpenAI's delay of its IPO caused sharp declines in technology and chip stocks worldwide.
Security warnings from prominent figures in the artificial intelligence sector and decisions to delay initial public offerings triggered a widespread sell-off in global technology and chip stocks.
Security Alarm in the Artificial Intelligence Sector
Security warnings from executives of artificial intelligence companies led to a sharp sell-off in global technology stocks. Anthropic CEO Dario Amodei called for slowing down the speed of developing models' capabilities.
Amodei argued that artificial intelligence agents could reach capabilities within six to 12 months to take over the entire internet. xAI owner Elon Musk and OpenAI CEO Sam Altman also stated that they share these concerns.
Sharp Decline in Chip and Technology Stocks
Technology and chip stocks, which have been pioneers of the artificial intelligence rally on Wall Street, were at the center of the selling. The Nasdaq 100 index fell by 1.2% in the early part of the day.
While the Philadelphia Semiconductor Index declined by 5.2%, Nvidia lost 3%, AMD lost 4.5%, and Micron lost 5.4% in value. Lam Research and Applied Materials were other manufacturers whose losses exceeded 6%.
Global Markets and Asian Stocks Affected
The sell-off was not limited to the US and was felt on a global scale. The European technology index dropped by 2.2%, while chip equipment manufacturer ASML lost 6% of its value.
In Asian markets, SoftBank shares fell by more than 10%, while major chip manufacturers such as TSMC and SK Hynix also followed a downward trend.
Washington and Regulation Debates
Some senators in the US are calling for the preparation of new regulations against rapid developments in artificial intelligence. A bill making it mandatory for artificial intelligence companies to take precautions to prevent disasters is being debated in the Senate.
US President Donald Trump, on the other hand, downplayed these concerns by describing criticisms of artificial intelligence and data centers as a sick conspiracy.
Investment and Competition Discussions Continue
Not everyone in the market shares the view that security warnings will slow down investments. Morgan Stanley forecasts that artificial intelligence spending will exceed $1.3 trillion by 2027.
On the other hand, the launch of lower-cost models by Chinese companies such as Moonshot AI, Alibaba, and DeepSeek continues to increase competitive pressure in the sector.