Microsoft CEO's AI Warning Draws Little Reaction from Cybersecurity Stocks

Dow Jones
Oct 12

Plenty of top tech executives have sounded the alarm about artificial intelligence this fall -- and the market is getting sick of it.

Microsoft CEO Satya Nadella joined them on Saturday, warning in a post on X that it was "time to step back and assess the trust architecture for this new era."

"We must assume a model is compromised and contain it from the start," he added. "Think of it like an emergency brake. An authorized person should always be able to shut down a model mid-task."

His comments follow a sharper market reaction to earlier AI warnings. Cast your mind back to mid-September, when the bosses of Anthropic, OpenAI, and SpaceX all called for a slowdown in AI development -- triggering a selloff in chip and memory stocks.

Less than a month later, the tech-heavy Nasdaq Composite is trading close to a record high -- a fitting way to mark the four-year anniversary of the bull market sparked by OpenAI's launch of ChatGPT.

Cybersecurity stocks showed no broad rally following Nadella's comments, trading mixed on Monday.

Cloudflare dropped 1.1%, CrowdStrike slid 0.8%, and Palo Alto Networks declined 0.7% in early trading. Fortinet climbed 0.2%.

Microsoft's own shares also weren't doing much, ticking up 0.3% to $536.66. As of Friday's close, they were up 11% for the year.

 

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