TLDR
- Nvidia stock fell 2.9% in premarket trading Monday after Anthropic and OpenAI CEOs called for a slowdown in AI development.
- Anthropic CEO Dario Amodei published an essay urging AI companies to pull back on advancing their most powerful models over safety concerns.
- OpenAI CEO Sam Altman said an IPO this year would be “ill-advised,” adding uncertainty to the AI sector.
- Broadcom fell 3.2%, AMD dropped 5.7%, Intel fell 5%, and Marvell Technology dropped 7%.
- Nvidia’s investments in open-source AI and start-ups, plus SpaceX’s continued Nvidia-powered AI server plans, may help offset the impact.
Nvidia stock dropped 2.9% in premarket trading Monday, hitting $NVDA as markets reacted to a weekend of AI safety headlines that rattled the entire chip sector.
The selloff was triggered after Anthropic CEO Dario Amodei published an essay Saturday calling for AI companies to slow the development of their most powerful models. He cited safety dangers and told CBS News that a key hurdle is whether China would join any such pause.
OpenAI CEO Sam Altman added fuel to the fire on Saturday, saying an IPO this year would be “ill-advised.” That spooked investors who had been counting on a major Nvidia windfall from OpenAI’s expected mega-listing.
Nvidia invested $30 billion in OpenAI at a valuation of $730 billion back in February. It also agreed to invest up to $10 billion in Anthropic late last year, when Anthropic was valued at around $350 billion. A delay or cancellation of either IPO would be a direct hit to those positions.
The broader chip market took a beating. Broadcom fell 3.2%, AMD dropped 5.7%, Intel lost 5%, and Marvell Technology slid 7%. It was a rough morning across the board.
Wider Market Pressure
The chip selloff did not happen in a vacuum. Nasdaq-100 futures dropped more than 1.5% ahead of Monday’s open, with S&P 500 futures off 0.6%. Asian markets also felt the pain, with South Korea’s Kospi falling 3.26% and Japan’s Nikkei 225 closing down 0.81%.
Oil prices added another layer of stress. WTI crude futures climbed 3% to trade above $103 a barrel after Saudi Arabia shut a key pipeline following drone strikes by Iran-aligned militants in Iraq. Brent futures crossed $108. Energy stocks bucked the trend, with BP and Shell lifting the UK’s FTSE 100 by 0.7%.
The Federal Reserve also opens its September policy meeting this week, with futures markets pricing in about an 86% chance of a rate increase.
Why Nvidia Might Still Hold Up
Despite the drop, Nvidia is arguably better positioned than its chip peers to weather an AI slowdown. The company has been quietly reducing its reliance on a handful of big customers by backing open-source AI development and investing in start-ups across the ecosystem.
Earlier this month, Nvidia closed a $12.9 billion deal to acquire Hugging Face, the open-source AI development platform. That deal broadens its customer base well beyond the big closed-model labs.
Elon Musk’s SpaceX is also still in the picture. Musk posted Sunday that he was “highly confident” SpaceX would launch Nvidia-powered AI servers in space next year. SpaceX has previously committed to using Nvidia hardware exclusively for its planned orbital data centers.
Musk did post over the weekend that he agreed with Amodei’s call for a slowdown, but stopped short of making any firm commitments to change course.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
