Goldman Sachs: US AI investment will pay off despite Chinese open-source competition

Goldman Sachs analyst Eric Sheridan argues that US AI investment will deliver returns, dismissing fears of a bubble. Speaking at the Asia Communacopia + Technology Conference in Hong Kong on Monday, he described a wave of demand for agentic AI as a pivotal 'inflection point' that vindicates high capital expenditure on data centers and semiconductors. Sheridan noted a 'big disconnect' between demand and compute availability, predicting the imbalance will persist until well into the second half of 2027. His remarks counter skepticism fueled by open-source AI models from Chinese companies, which some analysts say could erode margins for US providers. US AI infrastructure spending is on track to exceed US$700 billion this year.