Talk of AI slowdown causes fall in tech stocks - what happens if it becomes reality?published at 16:22 BST

16:22 BST

Michael Race
Business and economics reporter

Image source, Getty Images

While US stock markets have fallen in early trading as investors weigh up the impact of any potential slow down to AI development, they have been performing strongly over the longer term.

In the year to date, the Nasdaq index, which is dominated by tech companies, is up 12%, while the S&P 500, which tracks shares of America's biggest companies, is up more than 10% over the same period.

Given the huge amounts of money being poured into AI development and other companies which supply the materials, such as microchips, to develop the technology, it's not surprising that investors have been somewhat spooked by the announcements over the weekend.

It is yet to be seen whether the calls to slow down AI development will become reality and what impact any such slowdown might have.

If demand from AI companies such as OpenAI and Anthropic slows, then what might be the knock-on effect to the likes of Nvidia, Intel and Marvell Technology who produce the chips?

Mere talk of it has so far seen share prices for those firms fall 3.5%, 6.2% and Marvell Technology down 7.18% today. However, it's important to point out that shares in Alphabet, the owner of Google which is behind Gemini, are in positive territory along with Microsoft, which created Copilot.

Both OpenAI and Anthropic, which made chatbots ChatGPT and Claude respectively, have announced intentions to list on the stock market in order to raise more money to fund their growth, but they remain private companies for now.

A big chunk of the stock market these days is made up of tech companies, all of which are betting on AI to change the world (for the better) and produce strong returns.

Pension funds invest in US shares, and so what happens in these companies matters to people across the world.

Image source, Reuters

US Vice-President JD Vance tells journalists the government wants to "be careful" and "regulate smartly" following calls from AI industry heavyweights to slow down the development of AI.

Asked if he is concerned by the comments, Vance says "there are obviously risks".

He says that he feels "a little bit weird" about AI companies asking the government to regulate them, likening it to a "Trojan horse'".

Vance adds that "the Chinese are engaged in this long-term AI race against the United States". The government wants to make sure "we do things smartly, but we stay ahead of the curve", he says.

He says the "best way" to regulate AI would be to find "real consensus" between Congress and the White House to "make it stick".

Image source, AFP via Getty Images

In his latest Truth Social post, Donald Trump says that his administration has "stopped AI 'people' from doing bad, or potentially bad 'things'" and references Dario Amodei, the CEO of tech firm Anthropic.

Anthropic recently faced off in court after the US Department of Defense designated the tech company a supply chain risk in February.

The Pentagon took this action after Anthropic refused to allow the military to use its AI models for tasks including surveillance or autonomous weapons.

Anthropic then took the federal government to court, arguing that Defense Secretary Pete Hegseth had overstepped his authority.

In August, a judge upheld Anthropic's compaint, ruling that the Defense Department's action was "illegal and baseless".

Trump's dismissal of AI guardrails is politically riskypublished at 15:34 BST

15:34 BST

Bernd Debusmann Jr
White House reporter

Donald Trump’s recent post on AI guardrails shows he remains dismissive of the need to implement them, and concerned that any effort to do so would put the US at a disadvantage on the international playing field.

The US president often frames his policies as ones that benefit the US economy and keep it ahead of its global rivals, particularly China.

His views, however, are not ones that are shared by large swathes of the American public, with polls showing that many are growing increasingly concerned about what AI could mean in the future.

One Pew Research poll released just a few weeks ago in August indicates that more than half - 52% - of Americans are more concerned than excited about the prospect of AI taking a greater role in daily life.

Notably, Trump's vice-president, JD Vance, was more guarded in remarks this morning, saying that the US government remains "concerned" by AI and is "thoughtful about the risk", even if it needed to maintain an edge over China.

Trump might not be on the ballot in the midterms and the 2028 presidential race, but other Republicans will be - and increasingly anxious voters may mean that political winds may begin to shift towards AI regulation in Congress, despite the president's efforts.

Vance, for his part, said that "ideally" Congress and the White House agree and are able to "achieve consensus" on the regulations.

Image source, Getty Images

US President Donald Trump has just posted about AI - here are his comments in full.

"The only control or 'guardrails' that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!

"The Trump Administration has stopped AI 'people' from doing bad, or potentially bad, 'things,' like Dario (Anthropic!), who is now pretending to be a 'perfect little angel' - and we will continue to do so!

"We already have tremendous CRIMINAL and REGULATORY power over these companies!

"There is a SICK conspiracy going on against AI and Data Centers, and the only one that is happy about it is China.

"WHOEVER WINS AI, WINS!

"We are leading China, and all others, and will continue to do so. Conspiracy Theorists, Treasonists, Traitors, and Leakers, BEWARE!

"Thank you for your attention to this matter!"

Here's how some US tech companies have seen their shares fall on market opening, after days of turbulence over the future of AI.

Hewlett Packard -10%

Intel and Sandisk -7%

Qualcomm and Micron -6%

Oracle -5%

Nvidia -3%

Michael Race
Business reporter in New York

The main US stock markets have all opened down as investors react to the calls from tech bosses to slow down the pace of artificial intelligence development.

The Nasdaq, which is dominated by tech companies, was the biggest faller in early trading, with shares falling 1.2%.

The S&P 500 followed with a drop of 0.7%, while the Dow Jones was down 0.27%.

Given the eye-watering levels of money being invested on the potential of AI in the coming years, investors will be watching how companies intend to slow down and the response from governments like hawks.

While we wait for the US stock market to open in a few minutes, let's go over some of the questions our AI experts answered earlier.

What is AI?

Artificial intelligence is software that "can do things we normally associate with human intelligence" like pattern-spotting, making predictions and solving problems, AI correspondent Marc Cieslak explains.

Could AI truly threaten humanity?

We don't really know, writes our cyber correspondent Joe Tidy. He says some doomsday scenarios see the internet and all connected devices going down, plunging modern life into chaos, while others say the chance of an existential risk is low.

Can we slow down AI?

International agreements to slow AI will not be easy, senior technology reporter Chris Vallance says. OpenAI boss Sam Altman says pacing its development would not mean stopping, but development should be slower.

What threat does AI pose?

AI correspondent Marc Cieslak says many of the scenarios are "much in the realms of science fiction", but if a hostile nation used AI to break into a country's critical national infrastructure it could wreak "absolute havoc".

Are there laws in place to protect against AI?

There are none, says Stephanie Hare, co-host of AI Decoded.

What is AI's impact on the global market?

AI now makes up somewhere between 30-40% of the US stock exchange value,says Stephanie Hare. A fall in stocks hurts the US economy, and because of this the US government doesn't want the market to stop.

Image source, Getty Images

China’s top intelligence official says the country must "balance development and security" when it comes to AI.

Chen Yixin has called for stronger governance of the emerging technology, while warning of the national security risks it could pose.

AI has become "a new arena for strategic rivalry among major powers", he wrote for China Cyberspace, a journal run by internet watchdog body the Cyberspace Administration of China.

Chen says existing laws, regulations and ethical guidelines must be improved, and risk warning and emergency response systems should be developed as safeguards.

He warns of the dangers of "hostile forces" such as foreign intelligence using AI and calls for international cooperation.

Image source, Getty Images

As we just mentioned, OpenAI's Sam Altman is among those calling for caution with AI development.

On Saturday, Altman wrote on X that he will follow Anthropic's lead and introduce independent evaluators with "employee-like access" to the company.

He followed this up a few hours ago with two more posts in which he warns of two outcomes to be avoided: that humanity could "lose control of the future to AI", or that it produces a world with "too much concentration of power".

He notes that "when we talk about 'pacing', we do not mean 'stopping'", but that progress "should be slower than it otherwise could be".

"We are unapologetically on Team Humanity, and AI must always serve people," Altman says.

Since it was founded in 2015, OpenAI has faced scrutiny over several incidents, including in July - when its models went rogue during a test and hacked online platform Hugging Face.

Liv McMahon
Technology reporter

Image source, Getty Images

Dario Amodei of Anthropic and Sam Altman, chief executive of OpenAI, have both called for regulation and a "slowdown" of AI's development.

It's not the first time bosses or wider industry voices have clamoured for such action.

But questions have continued to mount over what any sort of "slowdown" - also backed by SpaceX boss Elon Musk - would actually look like.

Amodei said it would not mean "halting model training or technical progress" - instead, he wants firms to "take adequate time" to safeguard the AI they are developing.

Altman has called for similar, saying "when we talk about 'pacing' we do not mean 'stopping'."

"But it should be slower than it otherwise could be - interventions like safety cases and monitoring have significant costs."

The OpenAI co-founder also said companies did not - and would not - wait for governments to act.

Adam Goldsmith
Live reporter

Image source, PA Media

You may not realise quite how much you interact with artificial intelligence on a daily basis.

Google something, and you'll be shown an "AI overview" at the top of the page; listen to a song on a streaming platform, and you'll be presented with further music suggestions.

I even found myself using it recently to help pull together bar recommendations for a stag do.

But AI has been gaining traction for nobler purposes, too.

For instance, you might not realise how artificial intelligence is being used to improve cancer research and treatment.

As recently as June, the government announced a £20m investment, which it said would help over four million patients receive a faster lung cancer diagnosis or all-clear.

It also announced a further £8.1m for the piloting of six "cutting edge AI and digital technologies" to target faster care for "heart failure, strokes, lung cancer and more".

Health Secretary James Murray emphasised AI tools are "already changing" cancer diagnoses, by "giving radiologists a sharper eye, cutting waiting times and getting people the lifesaving treatment they need faster".

If American AI firms slowdown, Chinese companies could catch uppublished at 13:30 BST

13:30 BST

Laura Bicker
China correspondent

Image source, Getty Images

China has long called for greater global governance of artificial intelligence.

Over the weekend, President Xi Jinping urged countries at a meeting in India to promote open-source technology and sharing.

He also renewed a proposal for a global AI governance pact - although the details of any framework are unclear.

The Chinese leader is scheduled to meet Donald Trump in Washington later this month where AI is likely to be high on the agenda.

Chinese technology currently trails that of the US and the chief executive of Anthropic raised fears that if American firms slowdown, it could give Chinese companies a chance to catch up.

Donald Trump has addressed questions around the development of artificial intelligence by claiming the US is leading China on AI "by a lot" and says that "whoever wins AI, wins".

Speaking to reporters this morning aboard Air Force One, Trump said AI can be used "for a lot of things right away" and admitted using the technology himself, but refused to say what for.

He made similar remarks at the weekend during a visit to Northern Ireland, where he claimed the US is "leading China on AI... and, frankly, I want to keep it that way."

It followed a warning from Dario Amodei, the CEO of Anthropic, that if China was able to "pull ahead" and began leading in AI, it could pose a "pose grave danger" for the US and the world.

Image source, Getty Images

Prime Minister Andy Burnham has welcomed the recent discussion of risks AI technology could pose to humanity, according to his spokesperson.

"It's a good thing that the companies developing the most advanced AI systems are now talking openly about the risks as well as the opportunities," the spokesperson says.

They say that policy had to be "grounded in evidence rather than speculation".

"But we shouldn't assume that the existing framework will always be sufficient as AI capabilities develop, and any future measures will be evidence-based and focused on the risks we need to address," the spokesperson adds.

Stephanie Hare is asked what her takeaway message is for those watching at home.

She says people need to "get on the phone" to their elected officials and they should be challenging the CEOs of every company that wants to roll out AI agents.

Stephanie says there is no "robust cyber security" for this issue any more and "we need accountability for that".

She stresses that AI is a tool like any other and if it harms human life, those working on it can be held to account in a court of law.

With that the discussion comes to an end - we'll continue to answer your questions and bring you the latest developments on this story.

AI now makes up somewhere between 30-40% of the US stock exchange value, says Stephanie Hare.

A fall in stocks - as seen this morning - "hurts the US economy", she says, adding that because of this the US government doesn't want the market to stop.

AI correspondent Mark Cieslak adds that regulation depends on the "appetite" from the market, executives and also the public.

If there was a "swell of opinion" from the public that they're unhappy, there is a possibility that this could influence how AI is developed, he says.

Hare adds that it would "have to be done at a nation-state level", starting with an agreement between the US and China that is then built out across the G20.

Our experts are now asked what guardrails and laws are in place to protect people from the risks of AI.

There are none, says Stephanie Hare.

Some of the tech firms building AI claim to be begging for more regulation. But at the same time, they argue that too much regulation would allow China to race ahead of the US.

The "existential angst" about AI is being driven by the US industry, Hare says. American regulation would not stop Chinese companies.

But there's another point, Hare adds. "It doesn't work that way. The technology's out of the bottle. Iran could be using this, North Korea could use it, Russia could use it." Even if the US and China teamed up on regulation, it might not have an effect.

China and the US are "not on the same page" in terms of asking for more regulation, Hare adds. If anything, China thinks US companies are trying to stifle competition and that regulation is about preserving a US lead in the AI sector.

Marc Cieslak says the AI race is often being framed in Cold War terms, with many AI executives being former officials from the US government.

This framing, combined with the increased use of autonomous systems in military settings around the world, makes AI start to become "quite a lot more frightening", he says.

StephanieHare is next asked what evidence there is about the threat AI poses?

She says there has been a sense that some people have been "crying wolf" with the warning of AI threats, but over the summer there have been some worrying developments.

Stephanie explains AI agents from several firms, including OpenAI, were able to escape their "training conditions" and access the internet, which people warned meant they were getting out of control.

She adds that some agents not only gained access to the internet, but were also ignoring orders and covering up their tracks to hide what they have done online.

Marc is then asked what are the real world threats AI poses?

He says a lot of the scenarios are "much in the realms of science fiction", but admits if a hostile nation could use AI to break into a country's critical national infrastructure it could wreak "absolute havoc".

Our experts begin by tackling the basics - they're asked, what is AI?

AI is software that "can do things we normally associate with human intelligence" like pattern-spotting, making predictions and solving problems, explains AI Correspondent Marc Cieslak.

The term covers everything from simple algorithms to powerful systems like ChatGPT, he adds.

An AI agent differs because rather than telling you how to do something, it can go off and perform the task for you, Cieslak explains - it's giving AI "a totally different set of capabilities".

Stephanie Hare, co-host of AI Decoded, says that AI is "already helping people all over the world". This ranges from things like Shazam - a song-recognition app - to the medical sector, where it is used to read scans and more.

But she stresses that there are concerns about it, and currently "we don't really have any agreement as to whether or not this assessment of the threat is accurate".