GS Delta-One head, Rich Privorotsky, on latest in AI:

Four stories to unpack:
First, CXMT is a legitimate concern for memory economics.
Second, Microsoft’s Maia 300 custom chips, moving to TSMC’s 2nm process.Incrementally negative for merchant GPU suppliers (NVDA), positive for the custom silicon supply chain and aggregate compute consumption.
Third, Hock Tan’s comments comparing AI investors to gamblers have been taken wildly out of context. Both Broadcomand Intel reaffirmed exceptionally strong demand for another 2–3 years, potentially through 2030. Tan sees compute demand exceeding supply and explicitly acknowledged that frontier labs generating substantial revenue can afford expensive financing. LT ROI is a legitimate question, but hardly a revelation.
Fourth, Meta’s Muse Wonder and Wonder Full look genuinely competitive at the frontier,potentially adding another serious player alongside OpenAI, Anthropic and Google. Some questions around benchmarking, but impressive nonetheless. Prediction markets also anticipating another major Google release imminently.

What do I make of all this? Competition fuels competition, and competition requires more compute. The frontier keeps advancing, driven by Western closed source labs trying to outdo one another. Hardly bearish for aggregate compute demand, even if the economics shift around the supply chain. Think the legitimate concerns are around the ability to complete capacity/deliver power relative to expectations and that is fueling further de-rating in the capex vertical.(Historical earnings: For 2026Q2 (period ended 2026-06-30), Alphabet reported basic EPS of 14.41, diluted EPS of 14.24, net income of USD 174.771 billion, and revenue of USD 229.692 billion. In the prior-year period (2025-06-30), basic EPS was 5.16, diluted EPS was 5.12, net income was USD 62.736 billion, and revenue was USD 186.662 billion. For 2026Q1 (period ended 2026-03-31), basic EPS was 5.17, diluted EPS was 5.11, net income was USD 62.578 billion, and revenue was USD 109.896 billion. Consensus expectations: For 2026Q3, consensus expects EPS of 3.1255 and revenue of USD 131.353 billion. For 2026Q4, consensus expects EPS of 3.4628 and revenue of USD 146.133 billion.)