Stocks retreat as AI concerns unsettle investors

US stocks closed lower on Tuesday as renewed concerns about artificial intelligence outweighed easing oil prices.

The Dow Jones Industrial Average, S&P 500 and Nasdaq all fell, with investors focused on developments involving major AI companies.

Reuters reported on a leaked prospectus from Anthropic ahead of a planned initial public offering. The document reportedly values the AI company at about $2 trillion and warns of potential existential risks from AI.

It also reportedly shows Anthropic’s revenue rose twelvefold in 2025 to nearly $4.6 billion, while the company recorded a net loss of $42 billion. Anthropic has not publicly filed the prospectus and declined to comment on the leak.

Sentiment was further affected by reports that OpenAI had shelved a forthcoming frontier model, reportedly known internally as GPT-6.1 Astra, following safety concerns during testing.

Meanwhile, Advanced Micro Devices gained after Bloomberg reported its agreement to acquire AI start-up World Labs for $8.2 billion.

Energy shares fell as oil prices eased amid reports of indirect US-Iran talks. The Wall Street Journal reported that Middle Eastern crude shipments had recovered to about 80% of pre-war levels last week.

The market therefore remained caught between renewed scrutiny of AI valuations and safety risks and changing expectations around energy supplies and the Iran conflict.