The slowdown in AI does not mean there will be less investment in the sector
This is according to James Ooi of Tiger Brokers, who believes that spending could shift from training the next model towards expanding inference capacity and improving reliability
Anthropic’s recent calls to rein in cutting-edge artificial intelligence development, alongside similar warnings to exercise caution from Sam Altman and Elon Musk, do not necessarily imply a slowdown in AI investment or a bearish outlook for hardware sector players, says James Ooi of Tiger Brokers.
Spending could shift from training the next model towards expanding inference capacity and improving reliability, the market strategist says in a note.
This shift could also broaden the range of AI beneficiaries beyond hardware suppliers and hyperscalers to include cybersecurity and observability providers, who could see increased demand.
If regulation and safety requirements were to take on greater importance, compliance costs could rise, favouring well-capitalised operators such as OpenAI, Anthropic and Google, whilst it would become more difficult for smaller, pioneering laboratories to compete on a level playing field.
