Asia — AI and semiconductor stocks suffered steep losses Monday after executives at some of the leading U.S. artificial intelligence companies warned about risks linked to the technology’s rapid advancement.
Nasdaq e-mini futures fell 1.3% during Asian trading, while SoftBank, which has invested in ChatGPT maker OpenAI, plunged as much as 13.2% in Japan.
Anthropic CEO Dario Amodei urged AI companies to reduce the speed at which they develop more capable models, pointing to concerns about potential misuse. OpenAI CEO Sam Altman and xAI chief Elon Musk also backed the broader warning.
Altman separately said OpenAI would not move forward with an IPO this year because of safety concerns.
The warnings weighed heavily on technology shares throughout the region. Kioxia initially dropped 9.8%, while Tokyo Electron declined 3.7% and Taiwan Semiconductor Manufacturing Company slipped 1.2%. SK Hynix and Samsung Electronics fell 5.3% and 3.7%, respectively.
Chinese companies with exposure to AI also came under pressure, with several semiconductor and technology stocks posting substantial declines.
Investors are becoming more concerned about whether the vast sums being committed to AI infrastructure will deliver adequate returns, particularly if technological progress slows or regulatory scrutiny intensifies.
The latest concerns emerge as AI-related companies have played a major role in global equity gains since ChatGPT was launched in 2022. Recent cyberattacks involving AI agents, along with opposition to new data-center construction, have further intensified debate about the industry’s expansion.
For investors, the immediate question is whether high valuations can hold up if technological progress becomes slower and uncertainty surrounding the sector increases.
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