AI slowdown calls prompt chip selloff

Global AI stocks fell Monday after top AI leaders endorsed slowing down the development of frontier models.

Microsoft joined OpenAI, Anthropic, and SpaceXAI on Monday in endorsing a more prudent approach, raising investor fears that less compute spend could dampen the investment boom driving a global rally.

While OpenAI has ruled out an IPO this year, Anthropic is moving ahead, informing investors it expects a second straight profitable quarter.

“The competitive race between companies and countries remains intense, and it’s difficult to imagine firms voluntarily ​stepping back while rivals continue to push ahead,” Deutsche Bank analysts wrote. “We have to keep developing,” Microsoft’s Mustafa Suleyman said. “We just have to do it with a little bit more caution and care.”