AI Safety Fears Trigger Sell-Off in Asian Tech Stocks

Shares of AI and semiconductor companies across Asian stock markets have suffered a major sell-off following alarming warnings from the CEOs of leading technology companies that the unchecked development of artificial intelligence (AI) could pose serious risks to humanity.

After Anthropic CEO Dario Amodei called for a slowdown in the development of AI models, xAI chief Elon Musk and OpenAI CEO Sam Altman expressed support for the call. At the same time, Altman’s announcement that OpenAI would not pursue its much-discussed initial public offering (IPO) this year due to safety concerns has further heightened investor anxiety.

At the start of trading on Monday, share prices of technology-related companies fell sharply across major Asian stock markets. In Japan, shares of SoftBank, one of OpenAI’s major investors, plunged by as much as 13.2 percent.

Meanwhile, shares of memory-chip manufacturer Kioxia fell 9.8 percent, while Tokyo Electron dropped 3.7 percent.

Elsewhere, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip supplier, fell 1.2 percent, while South Korea’s SK Hynix and Samsung Electronics declined 5.3 percent and 3.7 percent, respectively. Shares of AI and chipmaking companies such as CXMT, SMIC and MiniMax also fell significantly in the Chinese and Hong Kong stock markets.

Internal reports from technology companies and the resignation of researchers have played a major role in the global downturn. A recent report published by Anthropic revealed that its Claude AI model had been used for dangerous activities, including weapons development, cyberattacks and surveillance. In addition, the resignation of the company’s safety researcher Jacob Coxon, along with warnings that AI could potentially destroy humanity within this decade, has triggered extreme volatility in the market.

The developments have also prompted growing calls among US political circles for stricter legislation, although US President Donald Trump has described the critics as a negative force. Amid the growing concerns, the United States and China are expected to hold bilateral talks on AI safety issues later this month.

//DBTech/BMT/OR//