In the first two months of 2026, generative artificial intelligence has rapidly expanded its capabilities, moving from chatbots to full-fledged executive assistants, triggering indiscriminate stock declines across sectors, hurting software, legal, insurance, and cybersecurity stocks.
“AI has just reached its third tipping point.” Nvidia CEO Jensen Huang told CNBC’s Becky Quick on Wednesday. “We are now using these agent systems to enable agents to reason, perform tasks, and actually perform work.”
However, the faster AI moves, the faster safety nets will fall off.
Anthropic was just blacklisted by the Trump administration after the AI startup refused to comply with Department of Defense requirements regarding its use of the technology. Anthropic was founded on a promise to build AI responsibly, but this week it abandoned its core safety pledge amid a battle with the Pentagon, replacing tough promises with what it calls “non-binding publicly stated goals.”
Part of the reason, he said, is that competitors are running ahead without the same guardrails. OpenAI is currently running ads that CEO Sam Altman has said would only be monetized as a last resort.
Researchers at both companies have resigned in recent weeks, warning of the risks.
Tensions over AI safety could be a crucial issue in the 2026 midterm elections, and one campaign is already hinting at how it will be resolved.
New York State Congressman Alex Boaz authored the nation’s first major AI safety law and is currently running for Congress. And it has become a target for those advocating deregulation.
Boas currently works with OpenAI co-founders Greg Brockman, Andreessen Horowitz, and PalantirJoe Lonsdale was appointed as an assistant.
“They’ve made it clear that they want to set an example here. If they win this election, they’re going to go to every member of Congress and say, don’t you dare regulate AI. Or we’re going to spend $10 million against you,” Boas said. “This is moving very quickly. I think there are still a lot of great steps to take that we can take right now, but there’s definitely not enough time.”
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