AI-linked Asian stocks slump after top lab CEOs call for slowing down technology's development

• SoftBank plunged 13.2%, while other major chipmakers including SK Hynix (down 5.3%), Samsung (down 3.7%), and Kioxia (down 9.8%) experienced significant declines in early trading.
• The concerns stem from an Anthropic report detailing misuse of Claude AI models for weapons development, cyber operations, and fraud, with one researcher warning AI 'could kill us all by the end of the decade.'
• The U.S. and Chinese governments are expected to hold talks on AI safety as part of bilateral discussions this month, while President Trump dismissed AI critics as 'very negative forces' raising unlikely scenarios.

AI-Linked Asian Stocks Slump on Development Slowdown Calls

Market Impact:

AI-connected stocks fell sharply across Asian markets Monday after top U.S. AI lab CEOs warned that development pace must slow to prevent threats to humanity. The selloff extended across major chip manufacturers and AI-related companies in Japan, South Korea, Taiwan, and China.

Key Stock Movements:

• Japan: SoftBank plunged 13.2%, Kioxia dropped 9.8%, Tokyo Electron fell 3.7%
• South Korea: SK Hynix declined 5.3%, Samsung Electronics down 3.7%
• Taiwan: TSMC slipped 1.2%
• China/Hong Kong: CXMT fell 2.7%, SMIC down 1.4%, Zhongji Innolight shed 4.1%, Minimax dropped 5.4%, and AI developer China Roundtable tumbled 10.5%

Key Developments:

Anthropic CEO Dario Amodei called for AI companies to slow model capability advancement, with support from Elon Musk (xAI) and Sam Altman (OpenAI). Altman announced OpenAI would not proceed with an IPO this year, citing safety concerns.

Anthropic released a report Thursday detailing misuse of its Claude AI models for weapons development, cyber operations, surveillance, and fraud. An Anthropic researcher stated that AI developers "earnestly believe it could kill us all by the end of the decade," though Altman characterized extinction risks as "overstated."

Political Context:

President Trump dismissed AI critics as "very negative forces" on Sunday, emphasizing U.S. competitive positioning. Meanwhile, the U.S. and Chinese governments are expected to hold bilateral AI discussions this month.

AI-related trades have driven global equity gains since ChatGPT's 2022 launch, but recent cyberattacks and public opposition to data centers have dampened sentiment.