AI Leaders Call for Slowdown, OpenAI Delays IPO

OpenAI CEO Sam Altman has postponed his company's initial public offering until at least 2027, citing mounting safety concerns over artificial intelligence development [2]. The decision follows a call from Anthropic CEO Dario Amodei for AI companies to slow the pace of advancing model capabilities, a proposal echoed by Altman and Elon Musk [1, 2]. The warnings have sent AI-linked stocks globally into a slump, threatening billions invested in the sector [1].

Industry Leaders Urge Deceleration

Anthropic CEO Dario Amodei proposed a three-step plan to temper AI development without sacrificing commercial advantage or the U.S. lead in AI [2]. He warned that within six to 12 months, AI agents could potentially cause hundreds of billions of dollars in damage by taking over the internet [1]. Amodei stated that while AI can improve human life, this benefit depends on building the technology correctly, and gaining time through deliberate care is worthwhile [2]. OpenAI's Altman agreed with Amodei, stating that the risks of human extinction from AI are "unacceptable" [1, 2]. This unusual alignment among rivals highlights how quickly concerns over AI have moved to the forefront of the industry, now colliding with its commercial ambitions [2].

The calls for a slowdown come amid increasing scrutiny on AI funding, with companies relying on debt and circular financing while global borrowing costs have risen [1]. Chip stocks, which have led the recent AI surge, were among the hardest hit, with Nvidia down 3% and Advanced Micro Devices sliding 5.7% [1]. European tech stocks fell 2.5%, with ASML down 5.8% [1]. SoftBank, an investor in OpenAI, tumbled as much as 13.2% in Asia [1].

Skepticism and Competitive Pressures

Not all investors are convinced by the warnings. Michael Burry, known for his successful bets against the housing market, described the concerns as "hype and puffery" and a cover for slowing growth [1]. Others argue that record capital spending commitments, such as Morgan Stanley's forecast of AI spending surpassing $1.2 trillion by 2027, indicate development is unlikely to decelerate [1]. Deutsche Bank noted that the competitive race between companies and countries makes voluntary steps back difficult [1].

Despite the calls for caution, Anthropic is reportedly in talks to bring Nvidia as an anchor investor for its expected public debut next month [1]. Sarah Heck, Anthropic's head of public policy, urged lawmakers to help build guardrails, including potentially blocking advanced chip sales to adversarial nations and enacting laws requiring testing of frontier models [2].

What to watch

• Anthropic's expected public debut, with talks underway for Nvidia as an anchor investor [1].
• U.S. and Chinese governments are expected to hold AI safety talks this month [1].
• The ongoing debate on AI regulation and the potential impact on future investment cycles [1, 2].

The warnings from industry leaders are likely to continue weighing on AI and chip stocks, as their valuations are built on assumptions of relentless technological progress and strong demand [1].