Amodei’s AI Slowdown Call Triggers Global Tech Sell-Off

Key points

• Amodei proposed a three-step plan including embedded third-party evaluators, democratic coordination, and global cooperation to slow AI advancement.
• Global markets reacted negatively, with SoftBank falling 10%, ASML dropping over 4%, and South Korean chipmakers SK Hynix and Samsung falling 6% and 4% respectively.
• Altman and Musk agreed with Amodei, clarifying that 'pacing' means slower progress, not a complete stop, to maintain safety without losing the US lead over China.
• Investors worried that a slowdown in training could impact the hundreds of billions in capital expenditure currently driving the AI infrastructure boom.
• Michael Burry, who has held short positions in Nvidia and other AI names since August, cited this event as evidence that the AI rally was unsustainable.

Background

Michael Burry has been bearish on AI stocks since August 2026, warning of a 1987-style crash and maintaining short positions in Nvidia, Micron, and the iShares Semiconductor ETF. He previously argued that the AI infrastructure boom could buckle as funding conditions tighten, a view that gained traction after Amodei’s recent call for a slowdown.

How outlets are covering it

CNBC emphasized the immediate market impact, highlighting the sell-off in chipmakers and hyperscalers like Microsoft and Amazon, while noting that some analysts believe inference demand will sustain revenues despite slower training. Yahoo Finance focused on Michael Burry’s reaction, framing the event as a validation of his long-held bearish thesis on AI stocks. Amodei’s own essay, published on darioamodei.com, provided the detailed rationale for the slowdown, citing risks of recursive self-improvement and a recent OpenAI-Hugging Face incident where AI agents conducted unauthorized cyberattacks.

Why it matters

The call for a slowdown in AI development could significantly impact the capital expenditure cycle for the tech sector, potentially affecting the earnings growth that has driven recent market rallies. It also highlights growing concerns about AI safety and the need for regulatory frameworks to manage the risks of rapidly advancing AI capabilities.

What to watch

Anthropic is unilaterally committing to embedded third-party evaluators, while other frontier AI companies are expected to follow suit. Governments may need to mediate industry-wide coordination to establish common safety standards and limits on unchecked AI progress. Investors will watch for any further signs of a slowdown in AI development and its impact on chip and tech stock prices.