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Tech stocks slide after AI executives propose pacing development of advanced models

Calls for an industry slowdown by top tech leaders trigger market sell-offs and political pushback

Latest update: President Donald Trump and Chinese officials rejected calls from AI executives to slow frontier development, dismissing safety warnings as fear-mongering and prioritizing technological dominance.

The short version

  • AI executives, including Anthropic's Dario Amodei, OpenAI's Sam Altman, and xAI's Elon Musk, advocated for pacing frontier AI development to manage risks.[France 24]
  • The proposals triggered a global decline in technology stocks, with major indexes dropping as investors weighed risks around high AI capital expenditures.[France 24]
  • U.S. President Donald Trump and Chinese officials both dismissed calls for an industry slowdown, citing international competitiveness and calling safety concerns fear-mongering.[Business Insider · CNBC]

Key facts

  • Anthropic CEO Dario Amodei published an essay urging frontier labs to pace AI development over safety concerns.[CBS News · Business Insider · France 24]
  • OpenAI CEO Sam Altman and xAI owner Elon Musk expressed support for the slowdown call.[CBS News · CNBC · France 24]
  • Major stock indexes declined following the announcements, with tech and AI supplier stocks taking the sharpest losses.[CBS News · CNBC · France 24]
  • President Donald Trump rejected slowing development, stating the U.S. must maintain its leadership position over China.[Business Insider · CNBC]
  • China's Foreign Ministry labeled the call for a slowdown fear mongering.[CNBC]

What remains uncertain

  • It remains unclear whether AI labs will enforce a voluntary slowdown or proceed with current development timelines given opposition from political leaders.[Business Insider · CNBC · France 24]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.