The AI market has become a ‘rubber band' — the question now is how far it can stretch, says Goldman strategist

Goldman Sachs strategist Rich Privorotsky said hyperscalers are still raising capital expenditure forecasts, but AI software is becoming cheaper to develop outside those large platforms. The comment points to a potential margin and competitive-pressure issue for big AI spenders, though the article provides no specific company-level financial update or quantified revision.

Analysis

Goldman Sachs strategist Rich Privorotsky said hyperscalers are still raising capital expenditure forecasts, but AI software is becoming cheaper to develop outside those large platforms. The comment points to a potential margin and competitive-pressure issue for big AI spenders, though the article provides no specific company-level financial update or quantified revision.