AI leaders shocked the world by calling for a slowdown in AI’s advancement and for regulation. The news triggered a sector-wide drawdown, raising the risk of a deeper correction, but short sellers shouldn’t get their hopes up.
As scary as it may seem to AI investors, the slowdown in AI’s advancement isn't likely to affect the infrastructure buildout. For the market, more advanced AI models don't matter, since labs such as OpenAI and Anthropic already have highly capable (and potentially dangerous) versions; what matters is the infrastructure to deploy utilitarian AI across the enterprise landscape.
