Bloomberg Surveillance · Tuesday, July 28, 2026
The rise of open-source AI models, particularly those emerging from China, is beginning to challenge closed-model providers like OpenAI and Anthropic. This shift is driven by a search for cheaper AI solutions, which could fundamentally alter the tech narrative and impact hyperscalers' revenue and capex strategies.
“And I'm thinking of say the closed models like the open ayes and the anthropics that are suddenly under pressure from open source models that are coming out of China but are being adopted rapidly by a lot of US companies seek the search for cheaper models is definitely taking steam.”
“If you have competition, then you could still be in a world where capex continues to grow faster than operating cash flow, not just in twenty seven, but potentially in twenty eight.”