A financial analyst is questioning whether the collapse in AI costs, driven by low-cost Chinese and open source models, will cause a reset in the AI story as cloud providers struggle to recoup trillions of dollars of capital spending, The Register reports.
In a research note focused on Asian markets, Jefferies estimates that about half of the roughly $2.3 trillion contracted backlog at the big cloud providers is at issue.
Source: theregister.com, reported 10-13. https://www.theregister.com/paas-and-iaas/2026/10/13/cheap-chinese-and-open-source-llms-could-trigger-trillion-dollar-ai-infrastructure-reset/5302774