Amid growing concerns over excessive competition in artificial intelligence (AI) development, the notion of an 'AI development slowdown' is gaining traction globally. On September 14, major semiconductor companies in Asia saw their stock prices decline.
According to Bloomberg, as of 11:30 a.m. on this day, Samsung Electronics and SK Hynix in South Korea fell by 2.5% and 4.3%, respectively. In Taiwan, TSMC dropped by 1%, while in China, CXMT saw a decline of about 3%. The Japanese market also experienced significant losses, with Kioxia and SoftBank plummeting by 7.2% and 11.2%, respectively. Notably, SoftBank, which holds a stake in OpenAI, has seen its stock drop further following news that OpenAI will not pursue an initial public offering (IPO) this year.
This downturn is largely attributed to the recent emergence of the 'AI development slowdown' discussion within the global AI industry. On September 12, Dario Amodei, CEO of Anthropic, called for a slowdown in AI development, emphasizing the need for industry-wide collaboration and international cooperation to ensure AI safety. Following this, both OpenAI CEO Sam Altman and Elon Musk, CEO of SpaceX and xAI, publicly expressed their support for this initiative. Additionally, Anthropic, OpenAI, and Google are reportedly discussing the establishment of a consortium for AI safety standards, as reported by the U.S. technology outlet The Information on September 13.
As the pace of AI model development among major AI companies slows, demand for semiconductors essential for these models is also expected to weaken, impacting semiconductor stock prices. Concerns had already been rising regarding the substantial investments AI companies are making in model development, and the introduction of the slowdown notion has further increased the pressure on semiconductor stocks.
Josh Gilbert, a researcher at global investment platform eToro, noted, "This week, investors will undoubtedly question the direction of the AI boom. The decline in stock prices for both Samsung Electronics and SK Hynix this morning signals that investors are selling off first and will analyze the reasons later."
Moreover, the stock market is also facing downward pressure from rising oil prices due to instability in the Middle East and the anticipated interest rate hike by the U.S. Federal Open Market Committee (FOMC) this week.
However, some analysts argue that the current discussions around an AI development slowdown are a temporary measure to prevent excessive corporate investment, and that the overall AI boom will continue. Gary Tan, a portfolio manager at Singapore-based Allspring Global Investments, stated regarding the slowdown, "There will be short-term pressures, but AI development is still relatively in its early stages. In a rapidly evolving technological landscape, it is uncertain whether the rest of the AI ecosystem will agree to slow down its development pace in line with the current hierarchy." He added that leading companies' slowdown could provide an opportunity for latecomers to catch up.
U.S. President Donald Trump also addressed reporters on this day, expressing skepticism about whether the AI industry should slow down or face more regulations, citing concerns over competition from Chinese companies. He stated, "We are ahead of China in AI. We are the most technologically advanced country in the world. Frankly, the side that wins in AI (competition) will be the victor, so I want to maintain this approach."
Additionally, there are predictions that the slowdown or regulation of leading AI companies could ultimately benefit the semiconductor industry in the long run. Charu Chanana, chief investment strategist at Saxo Markets in Singapore, remarked, "Even if additional regulations are introduced, the demand for computing resources and AI adoption will not disappear. From an investor's perspective, if AI develops responsibly, a slower pace of advancement could enhance the sustainability of opportunities."
* This article has been translated by AI.
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