Gartner analyst behind tech rout: AI returns can't justify neocloud build-out yet
SumitGup · x · 2026-10-20
The Gartner analyst widely credited for triggering this week's tech rout told CNBC that the industry currently has more compute capacity than demand, with large amounts of tokens and processing power being given away in freemium offerings. "Everyone in the AI race is running for a last-man standing position," he said.
His core argument: AI returns are not yet large enough to justify the massive neocloud build-out, a comment that helped spark the market selloff.
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