AI stocks tumble globally as tech CEOs warn of risks from rapid development

AI-linked stocks fell sharply across global markets on Monday after executives of leading artificial intelligence companies warned about the risks associated with rapid development of the technology.

The sell-off hit chipmakers and other companies linked to the AI boom after Anthropic CEO Dario Amodei called for a slowdown in the development of AI models, with OpenAI CEO Sam Altman and xAI CEO Elon Musk agreeing with his concerns.

The warnings have raised fresh concerns over the billions of dollars being invested in an industry that has helped drive global markets to record highs.

The warnings also intensified scrutiny of the enormous spending behind the AI boom, with companies increasingly relying on debt and circular financing to fund their AI ambitions even as global borrowing costs remain elevated.

What the numbers are saying

Nasdaq futures fell 1.9%, while Nvidia shares dropped 3% and Advanced Micro Devices declined 5.7%. Meta and Amazon also fell by more than 1.4% each.

• European technology stocks dropped 2.5%, led by a 5.8% decline in ASML, while Infineon fell 8.4% and Siemens Energy lost 7.4%.
• In Asia, SoftBank, a major OpenAI investor, fell as much as 13.2% in Japan. Taiwan Semiconductor Manufacturing Company declined 1.2%, while SK Hynix dropped 6.3%.

The declines came as investors assessed whether warnings about the risks of rapidly advancing AI could eventually affect demand for chips, data centres and other infrastructure supporting the industry’s expansion.

Get up to speed

The latest concerns over AI development come amid a series of warnings from global tech leaders and researchers about the potential misuse and longer-term risks of increasingly capable artificial intelligence systems.

• On Saturday, Anthropic CEO Dario Amodei called on AI companies to slow the rate at which they advance model capabilities, citing growing concerns over the misuse of artificial intelligence.
• In an essay he shared, Amodei warned that within six to 12 months, AI agents could potentially become capable of taking over the entire internet and cause hundreds of billions of dollars in damage.
• OpenAI CEO Sam Altman and xAI founder Elon Musk said they agreed with Amodei. Altman also said OpenAI would not proceed with an initial public offering this year, citing safety concerns.
• Concerns about the potential harm from AI also increased after Anthropic researcher Jacob Coxon resigned, saying that people building AI believe the technology could kill humanity by the end of the decade.

The US and Chinese governments are also expected to hold AI safety talks as part of bilateral discussions this month, according to Reuters.

What you should know

Companies across Africa have increased investment in the infrastructure needed to support the technology, particularly data centres and computing capacity.

Nairametrics reported in August that MTN Group plans to develop AI-enabled data centres with an initial capacity of 150MW across Nigeria and South Africa through a venture with an undisclosed UAE-backed investor.

The expansion comes as Africa’s AI market is projected to grow from $4.5 billion in 2025 to $16.5 billion by 2030, highlighting the growing investment opportunity in the region even as concerns over the risks and pace of AI development intensify globally.