SoftBank shares plunge as calls grow to slow AI development
AI safety debate triggers sharp sell-off in Asian technology stocks
Poinews.com – Investor anxiety over a possible slowdown in artificial intelligence development sent SoftBank Group shares down by more than 10% on Monday, as concerns about the pace and safety of advanced AI spread through technology markets across Asia.
The Japanese investment conglomerate has become closely associated with the AI boom through its position as a major OpenAI investor. Its shares fell as leading figures in the sector publicly supported greater restraint in the race to develop increasingly capable models.
The market reaction extended beyond SoftBank. South Korean memory-chip producer SK Hynix dropped 5.3%, while Samsung Electronics lost 2.8%. In Japan, chip-equipment maker Tokyo Electron declined 0.9%, and Kioxia Holdings, a memory-chip manufacturer, sank 6%.
Calls to slow the AI frontier
The immediate focus for investors was a push by Anthropic chief executive Dario Amodei to give safety considerations more weight in the competition among AI developers. On Saturday, Amodei argued that companies should coordinate a slower approach to their most advanced systems.
“Caution over speed and prudence over profit”.
Amodei urged companies to “pace the frontier,” meaning they should allow time to study, test and manage the risks created by rapidly improving AI capabilities. His warning centred in part on recursive self-improvement, a scenario in which AI systems contribute to the design of the next generation of AI models.
“Left unchecked, it could outrun our ability to understand and control these systems, and so must be pursued very carefully, if at all,”
The issue matters because the commercial AI race relies on the expectation that stronger models will produce new products, demand more computing infrastructure and expand sales of advanced chips and data-centre equipment. If developers voluntarily moderate progress, or if governments impose restrictions, those expectations could change quickly.
OpenAI chief executive Sam Altman and xAI chief executive Elon Musk both expressed support for Amodei’s concerns. Musk responded publicly with a brief endorsement:
“Dario is right.”
Altman also told Fortune in an interview published on Saturday that OpenAI would not launch an initial public offering this year, saying the company was concentrating on safety. OpenAI and Anthropic remain privately held, although Anthropic is preparing for a possible public-market listing in the coming months.
Warnings from inside Anthropic
The safety debate intensified after the resignation of Anthropic researcher Jacob Coxon, who warned that AI technology could move beyond human control. Another Anthropic researcher, Evan Hubinger, who remains at the company, set out an even starker view of the potential danger.
“We really do earnestly believe AI could kill all humans!”
Hubinger said he put the likelihood at greater than 10% during the coming decade. Such statements underline the deep divide within and around the AI industry: some leaders see increasingly powerful systems as an economic and scientific opportunity, while others believe their development must be carefully limited before capabilities advance further.
For markets, the debate creates uncertainty around both the timetable for new AI products and the regulatory response that may follow. A pause or more cautious development cycle could affect companies linked to chips, cloud computing, data centres and AI-focused investment. At the same time, a clearer safety framework could potentially reduce longer-term risks for the industry if it builds broader public and political confidence.
Political resistance to the safety warnings
US President Donald Trump dismissed the warnings on Sunday, describing AI critics as “very negative forces” and arguing that the outcomes they fear will not occur. House Speaker Mike Johnson also urged the public not to panic.
Despite those reassurances, investors chose to reduce exposure to technology shares on Monday. Dan Baker of investment research group Morningstar said SoftBank’s sell-off likely reflected concerns that regulators could slow AI development in an effort to prevent the most severe outcomes raised by OpenAI and Anthropic.
He added that further examples of newer AI models appearing difficult to control could also delay the sector’s progress. The concern is especially significant for SoftBank because AI is central to its investment narrative, making its valuation sensitive to changing views on the growth trajectory of the industry.
China adds to the strategic dilemma
Amodei’s proposal also has an international dimension. He called for stronger limits on China’s access to high-end AI chips and semiconductor-manufacturing equipment, arguing that access to chips will largely shape the country’s AI capabilities.
Yet he acknowledged in comments to CBS News that a coordinated global slowdown presents a difficult challenge if China does not participate. That tension highlights the conflict between safety cooperation and geopolitical competition: companies and governments may be reluctant to slow research if rivals continue pursuing more powerful systems.
China’s state-backed Global Times criticised Amodei’s position as “short-sighted,” saying it sought to limit China’s progress through an “AI Cold War.” Meanwhile, President Xi Jinping has proposed an open-source AI zone within BRICS to strengthen cooperation on AI models and training.
The sharp market moves show how quickly the conversation around AI has changed. Investors had largely focused on the technology’s promise to transform businesses and drive demand for semiconductors. Now they must also consider whether safety concerns, regulation and international competition could reshape the speed at which that promise reaches the market.
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