The guy who predicted the housing crisis is calling B.S. on the AI apocalypse — here’s why

As AI news has dominated the headlines over the past week, leading AI companies have begun to advocate for a slowdown in the development of frontier AI models. This has included remarks from the CEO of Anthropic, Dario Amodei, who claims that AI is advancing much faster than expected and that models are becoming increasingly capable of aiding the next generation of AI development.

The proposal includes granting independent evaluators more access to frontier labs, encouraging cooperation among AI companies, and negotiating international agreements focused on AI safety.

However, Michael Burry, an investor known for his prediction of the 2008 financial crisis, has a different perspective on the sudden push for AI development constraints. He believes that the AI apocalypse warnings are not solely aimed at safeguarding humanity, but also serve to promote the companies' business interests. Burry argues that slowing down the development of AI and delaying potential IPOs would provide more time for these companies to strengthen their market position and portray their technology as exceptionally powerful.

This strategy could potentially protect established players like OpenAI and Anthropic while making it more challenging for competitors, particularly Chinese and open-source AI developers, to catch up.

Moreover, Burry points out that disclosing the potential to create technology that could threaten humanity can also serve as a compelling marketing message for investors. This becomes particularly relevant given the current situation at OpenAI, where CEO Sam Altman recently announced that the company is not planning to go public in 2026 due to the current focus on safety concerns, as reported by Reuters.

Burry suggests that delaying an IPO could be a strategic move by these companies, as it allows them more time to address AI safety issues while strengthening the narrative that their technology is becoming increasingly powerful.

However, critics argue that slowing down AI development could potentially benefit the companies pushing for it, as it enables them to maintain their market dominance and shape the rules governing their technology. Former Federal Trade Commission official Alvaro Bedoya has expressed concerns that an industry-led agreement could protect incumbent AI companies from competition and limit the entry of cheaper competitors.

Despite these concerns, it is crucial to acknowledge that there are legitimate worries among AI researchers about the potential risks associated with the rapid advancement of AI technology.