Bloomberg Surveillance · Thursday, August 6, 2026
Despite a memory supply shortage expected to last until 2027, which could fuel the AI trade, questions remain about who is ultimately paying for the high valuations. The dynamic where AI companies finance cloud operations, as seen with OpenAI financing Microsoft's cloud, raises concerns about the sustainability of these financial arrangements and whether the real economy can support current expectations.
“The memory supply shortage is going to last and persist into twenty twenty seven. Digit Times just had a whole article about this. Doesn't that set up at least at minimum next year to be an expansion of the AI trade.”
“the relationship between all the AI related names, so you have you know, open AI is basically financing. Microsoft's entire operate cloud operations, right, and so the question is Okay, so if that's what's happening, everyone looks at Microsoft and says, oh, things are going great. But then you're like, oh, it's actually open Ai. That's buy and large financing that.”
“And the question is, will the real economy pay for the type of expectations that are being built into the cap expectations in the various sort of core providers. And that's the real question, particularly in an environment when we're starting to see challenger models that are just a hair off, you know, the frontier models that are what one one hundredth one, one thousandth one ten thousandth the price to accomplish the same outcome.”