For years, the AI trade has rested on a simple thesis: compute is scarce, demand is insatiable, and anyone who builds the infrastructure to deliver it will print money. Rich Privorotsky, head of Goldman Sachs’ Delta 1 trading desk, is now poking holes in that story.
Privorotsky flagged in mid-June 2026 that major AI companies are increasingly selling more compute hardware, directly challenging the idea that shortages will persist indefinitely.
The scarcity narrative is losing its grip
The core observation is straightforward. Major AI companies, the same hyperscalers that were previously hoarding every GPU they could get their hands on, are now making more compute hardware available to the market. That’s a meaningful shift from buyer to seller, and it suggests internal demand may be plateauing relative to the buildout pace.
Hyperscaler stocks have been underperforming recently, even as earnings commentary remains bullish on AI-driven revenue.
