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Global technology shares slide as investors reassess the pace, cost and risks of the artificial intelligence boom
Global artificial intelligence-linked stocks came under renewed pressure on Monday as warnings from some of the world’s most influential technology executives raised fresh questions about whether the breakneck pace of AI development can continue without greater safeguards.
The sell-off followed calls from leaders including Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and xAI founder Elon Musk for a more cautious approach to the development of increasingly powerful AI systems.
The market reaction was swift, with major technology and semiconductor stocks losing ground across Asia, Europe and the United States.
Reuters reported that the Nasdaq 100 fell about 1.7%, while Nvidia, AMD and other chipmakers came under heavy selling pressure. In the US market, Nvidia fell 3.2%, while Intel, AMD and Marvell recorded declines of between 5% and 6%. The Philadelphia Semiconductor Index dropped almost 6%.
AI safety fears collide with investment optimism
The latest market turbulence reflects a growing tension within the AI industry.
Companies have spent enormous sums developing larger models, building data centres and acquiring advanced computing capacity. Investors have consequently placed substantial bets on companies supplying the chips, cloud infrastructure and software required for the AI economy.
But concerns over the consequences of rapidly advancing AI are becoming harder for the industry to ignore.
Amodei has argued that AI companies should slow the development of frontier systems because of the increasing possibility that increasingly capable models could be misused.
His concerns have received support from other technology leaders, including Altman and Musk.
Altman has separately said OpenAI will not pursue an initial public offering in 2026, citing the need to prioritise AI safety. He warned that even a relatively small possibility of AI contributing to catastrophic outcomes should be treated seriously.
Markets question whether the AI spending boom can continue
For investors, the immediate concern is not simply whether AI is useful.
It is whether the extraordinary spending surrounding the technology can generate returns quickly enough to justify current valuations.
The world’s largest technology companies are committing enormous amounts of capital to AI infrastructure, including processors, data centres, networking equipment and energy.
The Bank for International Settlements recently warned that the AI boom could create new financial-stability risks. The BIS estimates that the five largest global technology companies could invest more than $1 trillion in AI during 2025 and 2026, while global AI investment could reach about $4 trillion by 2030.
That scale of spending means any meaningful slowdown could affect much more than individual AI companies.
Chip manufacturers, cloud providers, data-centre operators, power suppliers and other companies connected to the AI infrastructure chain could all feel the impact.
Safety debate could reshape AI investment
The emerging debate does not necessarily mean that investors are abandoning artificial intelligence.
Instead, the market may be beginning to distinguish between companies that can monetise AI efficiently and those whose valuations depend heavily on expectations of continued explosive growth.
A slower development path could also redirect spending.
If companies devote more resources to safety testing, governance and deployment rather than simply building increasingly powerful models, demand could shift toward cybersecurity, AI assurance, compliance and infrastructure designed to control advanced systems.
Reuters Breakingviews noted that stronger guardrails could divert more investment toward AI deployment rather than simply model development, potentially supporting continued demand for data centres and related infrastructure.
Geopolitics adds another layer of uncertainty
The AI debate is also unfolding against intensifying competition between the United States and China.
Both countries regard artificial intelligence as strategically important, with AI capability increasingly linked to economic competitiveness, national security and technological influence.
Calls for slower development therefore face a difficult question: how can companies reduce AI-related risks without allowing competitors to gain an advantage?
Chinese state media has criticised calls for a slowdown from US-based AI leaders, while Washington continues to treat advanced AI development as a major strategic priority.
What investors and businesses need to know
The latest decline should not automatically be interpreted as the collapse of the AI industry.
Technology stocks can fall sharply when expectations become stretched, particularly when companies have experienced rapid gains based on future growth rather than established earnings.
The more important issue is whether the current concerns lead to a sustained reduction in AI investment or simply force the industry to become more selective about where capital is deployed.
For businesses adopting AI, the development also reinforces the importance of evaluating the technology beyond hype. Questions around cybersecurity, data protection, reliability, regulation and return on investment are becoming increasingly important as AI moves from experimentation into critical business operations.
AI boom enters a new phase
The latest sell-off represents a significant moment for an industry that has spent several years convincing investors that artificial intelligence will transform the global economy.
That opportunity remains substantial.
But the warnings from the people building the technology suggest that the next phase of the AI revolution may be defined less by how fast companies can build increasingly powerful systems and more by how safely, sustainably and profitably those systems can be deployed.
For global markets, that distinction could determine whether the current AI boom evolves into a more mature investment cycle or faces a much deeper correction.
