Talk of an AI slowdown slams stocks

Just like that essay that tanked your GPA, Anthropic CEO Dario Amodei’s weekend essay calling for a slowdown in AI innovation to address civilizational risks pummeled tech stocks yesterday.

Amodei’s sentiment was seconded by OpenAI leader Sam Altman and Elon Musk, the CEO of xAI’s parent company, SpaceX. The news sent shares of companies that profit from the AI boom into a tailspin:

• The Philadelphia Semiconductor Index was down almost 6% yesterday. The world’s most valuable company, AI chipmaker Nvidia, shed more than 3% of its market capitalization.
• Shares of one of OpenAI’s largest investors, Softbank, plummeted nearly 11%.

Some analysts noted that chipmakers could rebound, as their products will be needed to run an increasing number of AI agents—even if the training of new models slows.

China and Trump respond

Amodei’s call to tap the brakes on AI model development—which included a caveat that US labs should still strive to maintain an AI edge against China—irked the country’s leaders. A Chinese government spokesperson said yesterday that “fearmongering, confrontation and vicious competition” serve to disrupt global AI governance.

President Trump is also anti-slowdown. In a Truth Social post yesterday, he derided the Anthropic CEO, saying the only AI guardrail the US needs is a “strong” and “high IQ” president, and that it’s vital that the US stays ahead of China.

Looking ahead…experts say AI governance will be on the agenda when Trump meets Chinese leader Xi Jinping in Washington this month.—SK