Goldman Sachs Trading Head Rich Privorotsky on AI Investment: How Rising Capital Costs and Spending Glut Lower Risk Appetite
Rich Privorotsky, Head of European Equities Trading at Goldman Sachs, discusses investors' reassessment of the AI trade on The Markets podcast, citing infrastructure spending plans, rising capital costs, and a shift from savings glut to spending glut.
Rich Privorotsky, Head of European Equities Trading within Goldman Sachs FICC and Equities, discussed the market's scrutiny of the crowded AI trade in an episode of The Markets podcast. He noted that investors are reassessing technology infrastructure spending plans while factoring in rising capital costs.
Privorotsky highlighted that third-quarter earnings from mega-cap tech companies will be critical. Investors are not only watching hyperscaler investment plans but also looking for evidence that this spending is translating into revenue growth. He further described a "seismic shift" from a savings glut to a spending glut, which, along with high energy prices, is lowering investor risk appetite.
Recorded on October 22, 2026, this resource selection aims to provide readers with an entry point to understand institutional perspectives on shifting AI investment logic. Specific arguments and data require listening to the full audio.