AI growth resists slower development pace

President Trump is opposing efforts to slow AI development, positioning it as a key driver of economic growth. The focus is shifting from the next generation of AI models to existing infrastructure investments and broader adoption of current tools. AI leaders have suggested slowing development of advanced models due to safety concerns, prompting Trump's strong opposition. Salesforce's Patrick Stokes noted that a slowdown could benefit builders, who have significant work to catch up, according to Axios' Ina Fried. The economic impact of AI is emerging through two channels: infrastructure growth and potential productivity gains. While the infrastructure channel is already contributing to economic growth, the productivity benefits remain underdeveloped. A slowdown at the AI frontier could indirectly affect the economy if it disrupts financial markets, as seen in the nearly 6% drop in AI chip stocks yesterday, compared to a smaller decline in the broader market. The debate highlights the tension between innovation and safety, with implications for both economic growth and market stability. As the industry navigates these challenges, the balance between progress and caution remains a critical issue.