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Goldman’s Warning: Hyperscalers Need $300 Billion Just to Break Even on AI

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‼️ 🧠 Goldman Sachs strategists, led by Ryan Hammond, project that spending on AI infrastructure by the five largest US hyperscalers will rise more than 50% next year to $1.2 trillion—above Wall Street’s $1.1 trillion consensus for 2027 capex—with the firms needing roughly $300 billion in annual AI revenue in the coming years just to break even on that outlay.

Bailey Signals BoE’s Patience Has a Shelf Life as Energy Costs Bite

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‼️ 🇬🇧 Bank of England Governor Andrew Bailey warned that resisting pressure to raise rates will get harder the longer high oil and gas costs persist, noting the energy shock’s pass-through has been “quite subdued” so far but that officials can’t wait for second-order inflation effects to emerge — comments that echo growing MPC concern over the prolonged US-Iran war, with Deputy Governors Clare Lombardelli and Sarah Breeden also signaling openness to a hike, as traders now price a near-90% chance of a quarter-point rise and at least three more within 12 months.