Excess Returns · Tuesday, August 11, 2026
Dom Rizziolan identifies a potential long-term pitfall for hyperscalers: the rapid growth of AI labs like OpenAI and Anthropic could eventually put pressure on them. However, he believes this scenario is likely several years away, and in the short term, cloud company fundamentals remain strong.
“Now, if you want me to take a step back and say, hey, that sounds really good, where are some potential pitfalls that we should really think about?”
“Uh, the main pitfall is how much of this is actually just driven by the AI labs, OpenAI and Anthropic, right?”
“Uh, and, and, you know, I think, I think there's a real scenario where the labs grow so ridiculously quickly that they, you know, could eventually aggregate frontier intelligence and put pressure on the hyperscalers, right?”
“But that scenario is, you know, a few years out at least. And in the short term, we should have very, very strong fundamentals out of the cloud companies.”