Asia chip stocks slide as OpenAI pause revives AI slowdown fears

Investing.com — Asian chipmaking stocks fell on Monday as renewed concerns over the pace of artificial intelligence development weighed on the sector, after OpenAI paused training, evaluation and inference with tool use for its most capable models while it strengthens safety controls.

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South Korea’s SK Hynix fell 4.8% and Samsung Electronics dropped 4.6%, while Japan’s Kioxia Holdings declined 2.3%.

In China, Cambricon Technologies fell 5.7%, Luxshare Precision lost 4.9%, SMIC dropped 3.6% and NAURA Technology fell 3.3%. Semiconductor Manufacturing International and other AI-linked hardware names also weakened.

The selling followed a renewed debate over whether safety concerns could slow the development of increasingly capable AI models, potentially affecting the pace of investment in the chips, servers and data centers underpinning the AI buildout.

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OpenAI said its latest training pause followed a security incident involving an internal research model and that its largest planned frontier reinforcement-learning run remains on hold while safeguards are reviewed.

The weakness extended across major Asian technology-heavy markets. South Korea’s KOSPI fell 2.3%, China’s CSI 300 declined 2% and the Shanghai Composite fell 1.5%, while Hong Kong’s Hang Seng rose 0.7%. Japan’s Nikkei 225 was down 0.1%.

Taiwan’s stock market was closed Monday for the September 28 public holiday marking Confucius’ Birthday/Teachers’ Day, so Taiwan Semiconductor Manufacturing and other major Taiwanese chipmakers did not trade.

The latest concerns add to an ongoing debate about the sustainability of the huge investment cycle behind AI. Earlier this month, executives including Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman backed calls for a more measured pace of AI development, triggering a sharp selloff in chip stocks.

At the same time, the long-term spending outlook remains mixed with Chinese technology companies continue to expand domestic AI infrastructure, while Alibaba has unveiled plans for a substantially larger AI model and a new in-house AI chip.

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Original Article

Asia chip stocks slide as OpenAI pause revives AI slowdown fears

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