Microsoft, OpenAI back AI slowdown, chip stocks fall

The selloff came after a rare public alignment among major AI players. Microsoft, OpenAI, Anthropic, and SpaceXAI all endorsed a more prudent approach to frontier model development on Monday. That collective stance rattled investors who have driven a global rally on expectations of relentless compute spending.

The timing is notable because the companies are not moving in lockstep on business strategy. OpenAI has ruled out an IPO this year, while Anthropic is telling investors it expects a second straight profitable quarter. Deutsche Bank analysts captured the tension, writing that the competitive race between companies and countries remains intense and that it is difficult to imagine firms voluntarily stepping back while rivals push ahead.

Microsoft's Mustafa Suleyman framed the shift as a matter of degree rather than direction, saying the company must keep developing but with more caution and care. The test now is whether that caution translates into slower spending or merely a more careful pace. For investors in AI and chips, the near-term question is whether Anthropic's profitable quarter and OpenAI's IPO stance signal diverging paths that could reshape the boom's trajectory.