Call to slow AI development sparks plunge in tech stocks
Quick Look
The call from executives at Anthropic, OpenAI and xAI to slow the development of advanced AI models caused Softbank shares in Asia to fall 11%, reigniting fears of a slowdown in investment in AI infrastructure that has underpinned the market for months.
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Why It Matters
Softbank holds 13% of OpenAI's equity and has become a key financial player in the global AI ecosystem under Masayoshi Son.
DECRYPTION - The call from the leaders of large AI companies to slow down the development of the most advanced AI models raises fears of a drop in investment in infrastructure, which has been driving the market for months.
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The 11% drop in Softbank shares set the tone as soon as the stock markets opened in Asia. Having become one of the powerful financial arms of the global AI ecosystem, holder of 13% of the capital of OpenAI, the Japanese conglomerate led by Masayoshi Son took the full brunt of market concern, triggered by the declarations of the leaders of large American AI companies during the weekend. Calling on slowing down the speed of development of the most advanced AI models to better control security aspects, Dario Amodei, the general director of Anthropic, received the support of that of OpenAI, Sam Altman, and Elon Musk, owner of the xAI laboratory.
Enough to create a small wave of panic on Monday among financial analysts and investors who, even without being able to yet precisely assess the consequences of these words, fear a sudden brake on investments in infrastructure, which is driving the AI sector to new heights since...
“The AI market is starting to show signs of vulnerability”: on the stock market, a small wave of panic on technological stocks
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What to Watch
AI outlook — possibilities, not facts
AI-related technological actions could continue to decline if fears of a slowdown in investment persist.
Likely · Within days
Open Questions
- What will be the real impact on investment in AI infrastructure over the medium term?
- Will the other big tech companies follow this cautious trend?
- How will regulators respond to these calls to slow down the development of AI?
