members-only post Sep 13, 2026 4 min read

Pacing the AI frontier & what it means for AI stocks

Businesses covered in the week's newsletter: CRDO, AVGO, SNDK, ALAB

Hi fellow investors,

In this week’s newsletter, I’d like to spend some time on Anthropic, OpenAI, and Elon Musk’s calls across the tech world to pace the AI frontier.

In other words, to slow the pace at which frontier AI models are developed to ensure their safe and controlled development and release.

As Dario Amodei, CEO of Anthropic, wrote in this essay:

"We must slow the pace at which we improve the capabilities of AI models. Progress will still seem fast, and we must make wise use of the time we gain."

He continues:

"Left unchecked, it could outrun our ability to understand and control these systems, and so must be pursued very carefully, if at all".

I believe guardrails are extremely important, and frontier labs should be prudent when pushing the boundaries beyond what is safe and reasonable.

At the same time, I can’t help but wonder whether this is partly a marketing stunt. There is something about it that feels like a genuine concern is being packaged alongside the message: “Look how powerful our models are. They are so powerful that they could harm the human race.”

I think the truth likely lies somewhere in the middle.

While Anthropic, OpenAI, and xAI tread carefully, I highly doubt that other frontier labs, and China for that matter, will do the same. Don’t forget that we are in a technological arms race between the world’s largest economic powers.

Guardrails are extremely important, but not everyone is playing by the same rules.

What this means for AI stocks

So, will the market turn bearish on AI on Monday?

Maybe.

However, a slowdown in model development does not equal a slowdown in demand. Demand is as strong as it has ever been, and there are no signs of a slowdown.

Another important dynamic to consider is that AI demand is no longer just about training new frontier models. It was in the first few years of the AI boom, but demand has gradually shifted towards inference: the practical use of trained models in real world applications.

Inference demand is only increasing, even if frontier AI labs were to slow the development of new models significantly.

Bottom line

If AI stocks were to sell off on Monday, I would happily add to my favorite names. Many AI stocks are already down 40% to 50% from their 52 week highs, and another selloff could push them to levels we may not see again anytime soon.

With that said, let’s take a look at the latest visuals I’ve published.