Investors Worry Over AI as Japan’s Nikkei Index Slides

Japan's Nikkei 225 stock index dipped Friday as investors worried about high valuations in the artificial intelligence (AI) sector and ongoing uncertainty in global bond markets.

The Nikkei 225 was down 1.06% at 68,308.92 points in early trading. The wider Topix index was down 0.24% at 4,081.62 points.

The drop came after losses in US stock markets on Thursday, especially among technology companies. Investor worries were further stoked by a Financial Times article that OpenAI’s revenues were lower than estimates it had previously suggested.

Rising oil costs have also fueled European inflation fears. Meanwhile, anxiety about France’s budget has kept borrowing costs high in the euro zone.

Analysts at Sony Financial Group said worries over the revenue prospects for a large private AI business and rising crude oil prices looked to have contributed to the market sell-off.

On the Nikkei 225, 112 stocks rose, 110 fell and three were unchanged. The greatest loser was SoftBank Group, down 5.40%. The corporation is a big investment in OpenAI and its decline in share price put pressure on the index.