Stocks linked to artificial intelligence (AI) around the world plunged on Monday, September 14, after leaders of various AI companies warned of multiple risks associated with its rapid development.
This comes as billions of dollars are being poured into the industry that has taken world markets to record highs in recent times.
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According to Reuters, futures tracking Wall Street’s Nasdaq e-mini futures came down by 1.9 per cent, witnessing a steep decline in chip stocks that have led the AI sugar rush.
Among the major stocks, Nvidia fell by 3 per cent, Advanced Micro Devices came down by 5.7 per cent and world’s richest person Elon Musk-wned SpaceX dropped by 2.6 per cent. Further, big names like Meta and Amazon.com declined by more than 1.4 per cent each.
Also, there was 2.5 per cent decline in European tech stocks, weighed by chip equipment giant ASML’s 5.8% decline. Also, chip maker Infineon came down by 8.4 per cent and AI equipment maker Siemens Energy lost 7.4 per cent.
Similar was the situation across Asia, where ChatGPT-maker OpenAI’s investor SoftBank tumbled 13.2 per cent, Taipei’s Taiwan Semiconductor Manufacturing Company slid 1.2 per cent and South Korea’s SK Hynix was down by 6.3 per cent.
This comes after leaders of various AI companies expressed concern over risks associated with AI’s rapid development.
In a lengthy essay shared on X on Saturday, Anthropic CEO Dario Amodei urged AI companies to slow the rate at which they advance model capabilities, amid rising fears over the misuse of AI.
Later on, Elon Musk, who runs xAI, as well as Sam Altman, CEO of OpenAI, extended support and stated that they agree with Amodei.
Citing safety concerns, Altman noted that the company is planning not to proceed with an IPO this year.
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