LT Weekly: Sep 18, 2026
It was a volatile week on multiple fronts. The Fed hiked rates +25bps on Wednesday to 3.75-4% which was largely as expected, but the tone was a bit more hawkish than anticipated. That coupled with an AI-fear driven selloff sent the Philadelphia Semiconductor Index down ~5.8% on Monday which was its worst session since July. The major indices came back but still closed the week mixed (Dow fell -1.7%, S&P 500 -0.08%, Russell 2000 -1.5%, while Nasdaq rallied +0.72%). Oil above $95/barrel and the hotter-than-expected August CPI print from last week continued to weigh on rate-sensitive names as well.
Fundamentally, we focused on the themes below this week:
- The AI Safety Debate Intensifies…
- Streamers Keep Winning As Broadcast TV's Biggest Nights Draw Smaller Crowds
- The Meta One Launch Was Largely As Expected But Highlights The Importance Of The Subscriptions Business
- Smart Glasses Come Into Focus As Product Momentum Builds, But So Does Scrutiny
- U.S. Shopping Malls Are Making A Comeback
- The Last-Mile Arms Race Accelerates
- Grab Bag: More Social Media Pushback + A Loss For Crypto
The AI Safety Debate Intensifies…
After the AI safety fever pitch comments that we highlighted last week, that debate was again front and center this week, but the conversation has shifted from how serious the risks are (though they are still mixed views) to what should actually be done about them.
Anthropic CEO Dario Amodei kicked off a waterfall of chatter around the topic after releasing an essay this past Saturday titled “We Must Pace the Frontier,” in which he argued that AI is advancing faster than expected and called for the industry to slow the pace of development if safety measures cannot keep up. His proposal found support from some of AI’s most prominent names, including Sam Altman, Demis Hassabis and Elon Musk, while others pushed back on whether slowing down is really the answer. Mark Zuckerberg and Jensen Huang argued that AI can continue moving quickly while still being developed safely, while others pointed out that potentially dangerous models are already widely available regardless of what frontier labs do next.
And world leaders are increasingly stepping more directly into the debate. In Washington, President Trump pushed back on calls to slow AI development, framing the issue around maintaining the U.S.’ lead over China. Meanwhile, Beijing pushed back on Amodei’s proposal as it potentially constrains China’s technological progress, even as the country continues to build out its own AI safety framework.
For now, the debate over how quickly AI should advance, and what guardrails should come with it, looks far from settled…see below for the key updates from this week.