The AI market has become a ‘rubber band’ — the question now is how far it can stretch, says Goldman strategist

Goldman Sachs strategist Rich Privorotsky describes the AI market as a "rubber band" that's stretching as major tech companies, or hyperscalers, boost their investment in AI. Meanwhile, the cost of developing AI software is decreasing for smaller firms, suggesting a shift in market dynamics. This shift could lead to more competition and innovation as smaller players enter the field, reshaping the landscape of the AI industry. It’s crucial because it highlights a potential redistribution of power and opportunities in the tech sector.