Stocks linked to artificial intelligence (AI) tumbled across global markets this morning amid a growing sell-off and safety fears among investors.
This comes after three of the technology’s most prominent figures, Anthropic’s Dario Amodei, OpenAI’s Sam Altman, and SpaceX’s Elon Musk, united in urging the industry to slow the pace of development.
The rout was sparked by an essay Mr Amodei published over the weekend, in which he argued that major AI firms should coordinate to manage development speed and prioritise safety. Both Altman and Musk publicly endorsed the message.
SoftBank, which holds roughly 13 per cent of OpenAI, saw its shares plunge by as much as 13 per cent. South Korea’s Kospi shed 2.4 per cent, Japan’s Nikkei 225 slid 1.1 per cent, and Nasdaq 100 futures signalled a 1.2 per cent decline at the US open.
AI stocks are in the red after Anthropic CEO’s safety warning
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Memory chipmakers bore the brunt of the sell-off in Asia. Kioxia, the Japanese Nand memory chip manufacturer, sank more than six per cent, while South Korea’s SK Hynix lost 4.3 per cent and Samsung Electronics dropped 2.5 per cent.
Taiwan Semiconductor Manufacturing Company, the world’s biggest chipmaker, dipped 0.8 per cent. In Hong Kong, Chinese AI start-ups also suffered.
Z.AI fell 7.4 per cent, a decline analysts partly attributed to a fresh equity and debt raising announced at the weekend, while MiniMax retreated 6.1 per cent.
Analysts note the losses are particularly striking given how strongly the sector has performed this year. Chipmaker-heavy indices in both South Korea and Taiwan have surged approximately 60 per cent in 2026, driven by demand for AI infrastructure.
The ‘Magnificent 7 stocks’ —Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla— are the primary drivers of the Nasdaq’s value | GETTY
Anthropic is preparing to go public with the biggest IPO in history
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REUTERSRuss Mould, an investment director at AJ Bell, said: “Also weighing on the tech sector are growing fears about AI becoming too powerful.
“Previously a hot investment area with investors clambering to own any stock linked to the AI boom, now it looks like AI’s strengths could backfire.
“There are growing fears that AI is advancing at an extraordinary pace and there need to be greater safeguards and controls in place.”
Mr Mould noted that the prospect of near-term interest rate increases was compounding the pressure, since higher rates weigh most heavily on companies valued on future earnings growth rather than current profits.
AI is changing the economy | Reuters
In London, Polar Capital Technology Trust ranked among the sharpest fallers on the Ftse 100, underscoring how the AI anxiety was rippling well beyond Asian markets.
Mr Mould added: Russ Mould observed: “An AI-related sell-off doesn’t create the best backdrop for Anthropic’s planned IPO, which is already rumoured to be delayed by a month to November.”
The timing is particularly awkward given that Mr Amodei’s own intervention triggered the market turmoil. His essay calling for industry-wide coordination on safety sent shockwaves through a sector that had, until now, been one of the year’s strongest performers.
Wee Khoon Chong, a senior strategist at BNY, described Amodei’s publication as the “ultimate shock for the sector”.