The current valuations are only inflated until they're not. Especially if the big American labs can convince the US government to work out a joint "AI non-proliferation" agreement with China which will allow both countries to essentially carve up and techno-colonize the rest of the world without any other competition except between themselves.

We're already seeing signs of this strategy from Open AI and Anthropic warning about the dangers of AI and the need for safety regulations. None of that stuff matters if China is not also on board with it.

> The current valuations are only inflated until they're not

You could say that about any historically inflated valuation all the way back to the tulip mania. Either the expected profit materializes or it doesn't.

> We're already seeing signs of this strategy from Open AI and Anthropic warning about the dangers of AI and the need for safety regulations

I would read this as a desire to pause training to be able to present a profit in anticipation of the IPO. The major AI labs mad scramble to IPO is if anything a sign that they aren't at all confident in the valuation. If they were they would be no hurry to cash out.