SoftBank Plunges 10% As Beijing Labels AI Pause Calls 'Fear Mongering'

The market often lags geopolitical tension, but this time the reaction was instant. SoftBank, a major investor in OpenAI, saw its shares drop 10 percent in Tokyo trading on Monday. This decline occurred as Beijing pushed back on calls from several high-profile U.S. technology executives to slow down the development of cutting-edge technology. Guo Jiakun, a spokesperson for China's Foreign Ministry, called these calls 'fear mongering.' He was responding to a question about U.S. CEOs including Dario Amodei of Anthropic, Sam Altman of OpenAI and Elon Musk. These executives argued that the dangers of rapid advancements in technology require a pause.

Beijing views AI as the main battleground for global technological competition and a new arena for strategic rivalry among major powers. The Chinese perspective emphasizes the need for an AI security risk prevention and control system. Chen Yixin, the Minister of State Security, published an article on Sunday advocating for the acceleration of this system. The official stated that unimpeded development is necessary for a 'healthy and orderly' progress. For U.S. investors, the disconnect between the rhetoric and the reality creates a difficult environment.

Amodei's recent essay outlines the delicate balance required for the industry. He admits that not building the technology deprives humanity of benefits. However, he warns that building it too fast is reckless. His core anxiety is the gap between U.S. capabilities and those of authoritarian regimes. He noted that the lead the U.S. has over the Chinese Communist Party is finite. If the U.S. slows down by more than a specific margin, CCP-associated projects will pull ahead.