This week's Video:
The AI Mid-Cycle Slowdown: OpenAI, Anthropic, and the AI Price War
As Gavin Baker said on BG2 - “You've had a lot of stocks that forget climbing a mountain or hill. They've gone straight up a cliff.”
“They're tired. They need to rest.”
At the same time, the only people doubting AI are the perma-bears which means a two-sided consolidation is likely from here.
The easy part of the trade is over.
The next phase is about price compression at the model layer, rising costs at the physical layer but with continued rotation away from the spenders (hyperscalers) toward the companies receiving the capex.
This is not bubble collapse.
It is digestion.
Watch here:piped.video/z5-AgvxQKEk