Jefferies’ Chris Wood warns US AI boom could end in massive capital destruction

The strategist argues cheap Chinese open-source models and falling token prices make US hyperscaler spending plans look unsustainable His culprit is not weak demand for artificial intelligence. It is competition from inexpensive Chinese open-source models, which he expects to keep winning market share while the price of AI output slumps. Wood is Global Head of Equity Strategy at Jefferies, and his concern starts with scale. US hyperscalers have issued combined capital expenditure guidance of approximately $695 billion for 2026. That figure is projected to rise to $870 billion in 2027.

Source: Crypto Briefing