Jim Cramer, host of CNBC’s Mad Money, has publicly questioned the recent manifesto by Anthropic CEO Dario Amodei, which advocates for a deliberate slowdown in artificial intelligence development. Cramer characterized Amodei’s weekend post, titled “We Must Pace the Frontier,” as both obvious and heavily self-interested, arguing that it serves the strategic goals of established players rather than the public good.
The controversy stems from a collaborative effort by leaders including OpenAI’s Sam Altman, xAI’s Elon Musk, and Anthropic’s Amodei to impose constraints on the rapid buildout of AI data centers. Cramer suggested that Amodei’s push for strict regulatory frameworks could effectively function as blackmail against the political system, aiming to entrench the market positions of major entities like OpenAI, Musk’s ventures, and Anthropic itself.
David Sacks, the former tech investor and current White House AI and crypto czar, offered a sharp rebuttal on the social media platform X. As co-chair of the President’s Council of Advisors on Science and Technology, Sacks argued that those setting the frontier are the ones best positioned to control its pace. He stated that agreeing not to build superintelligence while demanding regulatory approval would simply amount to excluding competitors and harming the public.
Despite his skepticism, Cramer acknowledged that the potential slowdown poses significant financial risks, particularly for Nvidia, which is deeply integrated with companies benefiting from accelerated AI infrastructure growth. He noted that market participants are beginning to realize that delays in data center construction will negatively impact stock performance, a sentiment reinforced by Oracle’s recent earnings call.
Cramer revealed that the CNBC Investing Club had previously anticipated such a scenario. During last month’s meeting, he advised members to reduce exposure to data center-dependent stocks, even selling positions in Corning due to fears of political hurdles. With the current developments, he indicated that the club’s strategy would involve buying back favorite stocks once the market overreaction subsides.
He also expressed regret that the club does not hold more positions in defensive stocks like Cardinal Health and BNY, which he believes offer necessary diversification in a market currently volatile due to AI-related headlines. Cramer disclosed that his charitable trust remains long in Nvidia, Cardinal Health, and BNY.
Amodei’s manifesto is clearly self-serving. Why should the current leaders dictate the pace for everyone else?
Interesting pivot to buying defensive stocks. Cramer hedging his bets while the rest of us panic?
Nvidia take the hit first. If data centers slow down, who else gets crushed next?
Cramer is right, but calling it blackmail is strong. It’s really about moats, not just safety.