Fund managers are fielding unusual questions about positioning portfolios for a "robot apocalypse" after big tech leaders including Elon Musk and executives at OpenAI and Anthropic warned their AI creations could pose existential risks. Despite warnings that AI widgets might move from hacking websites to "killing humans at scale," markets barely reacted. The S&P 500 and Nasdaq showed no identifiable dip, while Korean stocks fell over 3%. US Treasuries remained at decade-low prices, and gold stayed flat, suggesting investors fear fiscal deficits more than "demonic robots."

Three theories explain the calm. First, warnings may inadvertently boost AI stocks by justifying massive hyperscaler spending funded via corporate bonds. Second, investors may view the alarms as marketing hype or excuses to monetize models, despite admitting loss of control. Third, the risk may be genuine but unpriceable. The non-reaction highlights a market regime where AI concentration dominates, and governance failures at unlisted tech firms are ignored until they hit listed valuations.