AI stocks slide as investors weigh calls to slow development; SoftBank falls 13%
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Shares linked to artificial intelligence (AI) companies fell sharply on Monday as investors weighed growing scrutiny of the technology’s existential risks after leaders of major AI firms called for a more measured pace of development.
SoftBank, which owns about 13% of OpenAI, fell as much as 13%. South Korea’s Kospi declined 2.8%, dragged lower by chipmakers that supply the AI industry while Japan’s Nikkei 225 fell 1%.
Nasdaq 100 futures pointed to a 1.3% decline for the tech-heavy US index at the open.
The sell-off followed comments by Anthropic CEO Dario Amodei, who published an essay over the weekend calling for leading AI companies to coordinate on the pace of development and strengthen safeguards around increasingly powerful systems.
OpenAI CEO Sam Altman and SpaceX CEO Elon Musk have also backed calls for a more measured approach to AI development.
Chipmakers bear the brunt
Asian companies supplying the infrastructure for the AI boom have been among the biggest winners in global equity markets this year. Chipmaker-heavy stock indices in South Korea and Taiwan have gained about 60% so far in 2026.
On Monday, however, memory-chip manufacturers came under heavy selling pressure. Kioxia, which makes NAND flash memory chips, fell more than 6%, while SK Hynix declined 5.8%. Samsung Electronics dropped 3.5%. In Taiwan, shares of Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, fell 1.2%.
The declines suggest investors are reassessing some of the sharp gains made by AI-linked companies as concerns grow over the pace of spending on AI infrastructure and the potential regulatory and safety risks surrounding the technology.
In Hong Kong, shares of Chinese AI start-ups Z.AI and MiniMax fell 7.9% and 6.4%, respectively.
AI safety debate gains momentum
The market moves come as prominent technology executives and AI researchers increasingly debate whether the industry is moving too quickly.
Amodei has argued that companies and governments need more time to address the risks associated with increasingly capable AI systems. His call for coordination among leading AI developers comes amid growing concerns about AI systems operating beyond human control.
Altman has separately said OpenAI does not plan to go public in 2026, citing the need to focus on AI safety and alignment. Microsoft CEO Satya Nadella has also backed “deliberate pacing” to ensure safety mechanisms keep up with advances in AI.
Some investors, however, see greater oversight as potentially positive for the sector. Clearer rules and stronger safety standards could provide companies with greater certainty over how AI systems can be developed and deployed, reducing regulatory uncertainty in the longer term.
Oil prices climb above $107
Meanwhile, oil prices rose sharply on Monday as escalating tensions in the Middle East raised concerns about disruptions to global energy supplies. Brent crude for November delivery climbed 2.8% to $107.54 a barrel, while US benchmark West Texas Intermediate (WTI) for October rose 2.3% to $102.34.
Both benchmarks extended last week’s gains after moving back above the $100-a-barrel mark, adding another source of uncertainty for global investors already grappling with concerns over AI valuations, technology regulation, and the broader economic outlook.