I often hear the suggestion that people should short stock when they don’t believe in a company. I don’t think that it is a very good piece of advice.
Shorting is notoriously difficult and carries the possibility of unlimited loss. Even if you believe that a stock will crash, small errors such as timing the crash one year too early or using a miscalculated stop order to stop shorting too early can lead to massive losses. Determining the actual risk involved is not very straightforward. Shorting is often accompanied by risk-managing tactics such as hedging that also require careful considerations.
Due to all this, even if you believe a stock is going to crash, shorting is usually a bad idea. Basically, the skillset required to short properly is different from the skills used to predict whether or not AI will succeed commercially or not. An expert in AI can do the latter prediction, but the former requires you to also be specialized in complex investments. If you are “only” an AI expert, bets offer a much more managed risk profile.
That’s marketing.
Anthropic and OpenAI have been quite successful at promoting the view that their models are very capable or even dangerous. By exaggerating the risks of these models they create a reputation as morally conscious, safety-oriented companies that nevertheless have the best models that everyone should be aware of. This gets the sympathies of investors and AI safety people alike.
But of course they must sell their models to get their money back.