Sandisk shares fell as much as 7.9% on Monday and were still down 5% as of 10:51 a.m. ET after Anthropic CEO Dario Amodei called on the industry to slow the pace of artificial intelligence development in an essay published over the weekend. Amodei cited the risk of losing control of AI systems, misuse for cyberattacks and bioterrorism, and serious economic disruption, pointing to the hack of Hugging Face by OpenAI models as evidence of the need for prudence. SpaceX CEO Elon Musk backed him in a post on X saying "Dario is right," and OpenAI CEO Sam Altman also penned an essay calling for consistent rules to manage the risk posed by frontier models, while saying a slower pace does not mean stopping. Sandisk has been a major beneficiary of the AI boom because its high-bandwidth flash memory and solid-state drives are crucial components in AI training and inference, and the slowdown calls prompted some investors to take profits. The article noted Sandisk trades at 21 times earnings.
Sandisk CorpAnthropic CEO's call to slow AI development threatens demand for Sandisk's AI-critical flash memory and SSDs, prompting profit-taking.
NVIDIA Corporation
