Asian stocks drop as OpenAI and Anthropic warn on AI safety risks while oil hits $102
Tech markets in Asia and the US slid after major AI leaders urged slowing innovation for safety reasons, coinciding with rising oil prices amid Middle East conflict tensions.
Stock futures fell globally as investors weighed safety concerns regarding artificial intelligence alongside escalating oil prices. OpenAI CEO Sam Altman stated late Saturday that the company would not launch an initial public offering this year, calling a potential IPO "ill-advised." Dario Amodei, CEO of rival Anthropic, wrote in an essay that AI development requires slowing down due to safety risks and questioned what happens if China does not follow suit.
These AI developments weighed on technology markets. The Kospi Index fell over 3% with SK Hynix and Samsung Electronics among the losers. Futures for the Nasdaq-100 tumbled 1.2%, while the S&P 500 futures lost 0.6%. Simultaneously, oil prices surged due to supply fears in the Middle East.
The Saudi Arabian pipeline allowing traffic around the Strait of Hormuz was shut down following drone attacks. Analysts fear this disrupts global energy supplies and keeps inflation elevated. Brent crude rose 2.8% to $107.55 a barrel, exceeding $102 on Sunday night. An unexpectedly hot U.S. consumer price report prompted investors to brace for Federal Reserve interest rate hikes. JPMorgan's Michael Feroli predicted the central bank would raise rates by 25 basis points this week and again in December.
