Global technology stocks tumbled on Monday as investors reassessed the risks surrounding the artificial intelligence boom after three of the industry’s most prominent figures called for greater controls over the pace of development.
Dario Amodei, chief executive of Anthropic, published an essay over the weekend arguing that major AI companies should coordinate their development programmes and put greater emphasis on safety.
OpenAI chief executive Sam Altman and SpaceX founder Elon Musk subsequently endorsed the message.
The intervention triggered a sharp reversal across AI-related equities, with investors already concerned about elevated valuations and the prospect of higher interest rates.
SoftBank, which owns roughly 13 per cent
SoftBank, which owns roughly 13 per cent of OpenAI, fell as much as 13 per cent. South Korea’s Kospi declined 2.4 per cent, while Japan’s Nikkei 225 dropped 1.1 per cent. Nasdaq 100 futures pointed to a 1.2 per cent decline at the US open.
The sell-off was particularly severe among memory-chip manufacturers, which have benefited from the enormous investment required to build AI data centres.
Kioxia, Japan’s leading NAND memory producer, fell more than 6 per cent, while SK Hynix dropped 4.3 per cent and Samsung Electronics declined 2.5 per cent. Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, fell 0.8 per cent.
Chinese AI companies were also hit
Chinese AI companies were also hit. Z.AI fell 7.4 per cent, with analysts partly attributing the decline to a new equity and debt fundraising announced at the weekend, while MiniMax dropped 6.1 per cent.
The scale of the declines is notable because AI-related shares have been among the strongest performers of 2026. Chip-heavy indices in South Korea and Taiwan have gained about 60 per cent this year, driven by expectations of sustained demand for AI infrastructure.
Russ Mould, 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
“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.”
Mould said expectations of higher interest rates were adding to the pressure, as rising borrowing costs tend to weigh particularly heavily on companies whose valuations depend on earnings expected far into the future.
The shock also reached European markets
The shock also reached European markets. In London, Polar Capital Technology Trust was among the sharpest fallers on the FTSE 100, highlighting how concerns about AI valuations and safety were spreading beyond Asia.
Mould added: “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 market reaction creates an awkward backdrop for Amodei, whose warning about the need for greater coordination and safety has itself become a catalyst for the sector’s latest sell-off.
Wee Khoon Chong, senior strategist at BNY, described Amodei’s publication as the “ultimate shock for the sector”.
