Is an AI 'slowdown' even possible without China?

Luke Wilson (0:01)

China hits back after calls to slow down the growth of AI. It's World Business Express from the BBC World Service. I'm Luke Wilson. Canada looks to Europe as its trade war with the US continues and Africa's biggest ever IPO gets underway in Nigeria.

China has criticized the boss of the American AI company Anthropic after he called for a slowdown in developing the technology because of the risks involved, but without sacrificing America's lead in AI. Dario Amadei told the US network CBS that developing the technology is not in question, but there are serious concerns that companies and governments need to address.

Dario Amodei (0:47)

I feel the benefits or the need for benefits every day. One thing I said in my essay, my father died of a disease, hepatitis C, that was something like 40% curable when he died of it. He wasn't one of the ones who was cured. And a few years after, a medicine that was invented that made it 95% curable. So I feel the weight of bringing the benefits of this technology. I also feel the risks.

I wake up every day and I read one of these threat reports, like someone tried to use our model to build biological weapons. Of course, I don't want to be responsible for that. And that's why we have very strong safeguards.

Luke Wilson (1:26)

The bosses of two rival firms, Sam Altman of OpenAI and Elon Musk of SpaceXAI, have both said they agree with Amadei. But US President Donald Trump says now is not the time for a slowdown.

Donald Trump (1:38)

We're leading China in AI. We're the most sophisticated country in the world. And frankly, I want to keep it that way, because whoever wins AI wins.

And we could put guardrails, we can do this and that, but I think you have a lot of negative forces that are bringing it up that shouldn't be bringing it up, and they're bringing up things that won't happen.

Luke Wilson (1:57)

Eileen Burbage is a tech investor and founding partner at the venture capital firms Passion Capital and NFG. She told me a slowdown doesn't seem likely.

Eileen Burbage (2:07)

I think there is some level of cynicism about whether or not they're making these statements out of genuine concern and looking for some specific action or consequence, or if now they have to be seen to make these statements to position themselves as the responsible companies that they market themselves to be.

Luke Wilson (2:25)

And Dario Amadei talking about seeing a slowdown that ensures the US keeps its AI lead. Can that happen? Are there things these tech companies can do to slow down but still keep that competitive edge, do you think?

Eileen Burbage (2:39)

I don't really think so, and I think that's where some of the cynicism comes from, because I think it's the right thing to say. And Dario actually has a prior track record here, and that he famously left OpenAI because he was concerned the OpenAI executives were not taking their responsibility seriously enough, and he felt the team that he was assembling would be better custodians for the technology. So it is consistent with how he's behaved in the past, but I don't quite understand how one could slow down and yet still maintain a lead or even a prominent position within the race. And I also think none of it is of consequence if it doesn't also include China.

Luke Wilson (3:20)

It doesn't seem like from what we've heard today from the Chinese government that they share this view, this idea of a slowdown. How do you think it will play out between the US and China?

Eileen Burbage (3:30)

Yeah, I do think that's the crux of it. There was a specific minister, wasn't there, who did come out and say that he believed a slowdown or some sort of conscientious approach would be better for the Chinese economy and the Chinese society as well and population. But there's clearly not been any discussion about how any type of unilateral or even just a bilateral or global cooperation would actually take place. And if there isn't, then the race is going to continue and carry on because I don't think any of the states are going to risk losing their position within the race.

Luke Wilson (4:01)

Tech investor Eileen Burbage. Isaac Stel is investment manager at Wealth Club. How are markets reacting to this, Isaac?

Isaac Stel (4:09)

Well, with this sentiment swing, it certainly spooked investors who have reacted by selling AI related stocks. Now, in Asia, we saw Samsung and SK Hynix both fall by more than 4 percent, while OpenAI investor SoftBank Group also fell by 13 percent. Now, the sell-off has been compounded by OpenAI's decision to delay its long-awaited stock market listing until next year, raising questions over when investors will see returns of the huge sums of money poured into the sector.