Analysts dismiss AI safety warnings as a strategy to curb competition

  • Technology analysts and traders challenged frontier AI developers’ warnings about slowing development.
  • The Nasdaq-100 fell as much as 1.7% early Monday.
  • Anthropic and OpenAI are expected to go public before the end of next year.

Technology analysts and traders rejected recent warnings from frontier AI platforms about development risks, arguing that safety messaging could encourage regulation that protects leading companies from competition. Gil Luria, head of technology research at DA Davidson, said frontier-model developers were trying to preserve their lead by persuading politicians to impose rules that would slow rivals. Investor Michael Burry made a similar argument, saying Anthropic and OpenAI face growing competition and are expected to go public before the end of next year. Jefferies traders said frontier-model companies had been supporting a tougher AI regulatory framework for some time. The warnings helped push the Nasdaq-100 down as much as 1.7% early Monday, but JPMorgan traders said they would buy the dip and expected no meaningful revenue or margin damage from the AI pullback. Bank of America described the calls for restraint as noise amid accelerating capital expenditure and said Washington was unlikely to handicap domestic champions. Cybersecurity shares rallied sharply, with several sector ETFs gaining between nearly 6% and 10%. The debate comes as open models from Chinese and U.S. companies increasingly approach frontier-model performance at lower cost, while China’s Foreign Ministry called the slowdown appeals fear-mongering.

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