Slowdown calls deflate AI stocks
AI-related stocks across Asia fell sharply yesterday after US AI company CEOs, including Anthropic's Dario Amodei and OpenAI's Sam Altman, called for a slowdown in AI development. Softbank Group Corp shares tumbled 13.2 percent in Japan, while Taiwan Semiconductor Manufacturing Co slipped 1.2 percent. South Korean memory maker SK Hynix Inc slid 5.3 percent. This followed a threat intelligence report from Anthropic detailing misuse of its Claude AI models.
The market reaction to US AI leaders calling for a slowdown is a distraction. The underlying concern about AI misuse, specifically Anthropic's report on its Claude models being used for weapons development and cyber operations, is more significant. These are not abstract fears. This concrete evidence of misuse, not just CEO statements, drove the market's 13.2 percent drop in Softbank shares.
Asia's chipmakers and AI developers will feel the direct impact. Companies like TSMC, SK Hynix, and Samsung Electronics saw declines ranging from 1.2 percent to 5.3 percent. Regulatory pressure for slower development or stricter controls in the US will inevitably ripple into Asian markets. China's Global Times already frames this as a 'Cold War playbook,' suggesting a push to accelerate its own AI development in response.
The thing to watch is how Asian governments respond to the calls for a slowdown versus the US stance. President Trump dismissed critics, prioritizing US leadership. This divergence creates an opening for Asia to either adopt caution or double down on speed. The test for major players like Z.AI Co, which saw a 10.5 percent tumble, is whether they can navigate this geopolitical tension while maintaining investor confidence.
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