Michael Burry thinks OpenAI and Anthropic are using AI doomsday fears to protect incumbents and inflate IPO hype.

argues current LLMs will not become AGI, so there is no dangerous intelligence trajectory worth deliberately slowing.

Burry is arguing that a broadly imposed slowdown could protect today's leading labs from fast-rising competitors

If a regulation is passed requiring expensive evaluations, security systems, reporting, audits, and government approval may cost a giant lab relatively little compared with a small lab. The regulation can therefore become an entry barrier even if everyone is technically allowed to keep developing.

He also says warnings that AI could become catastrophically powerful inflate perceptions of the companies’ importance before public listings and could provide cover for slowing growth.