The Unexpected Investment Case for AI Safety

Morgan Stanley expects AI safety regulation to boost, not brake, compute CapEx across nearly all plausible policy scenarios.

• Safety spend as tailwind: Morgan Stanley's Ariana Salvatore argues that across five possible regulatory scenarios, greater AI safety monitoring infrastructure accelerates compute spend and CapEx rather than restraining it.
• Three barriers to big regulation: A comprehensive federal AI bill is unlikely near-term due to politics (Trump opposes large-scale regulation), procedure (no legislative vehicle), and precedent (regulation historically needs a high-salience triggering event).

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