Premium"It Was Gross": Goldman Says The AI Unwind Has Entered Phase Two As The $106 Billion Debt Bill Comes Due
Phase one of the AI unwind was about direction. Phase two is about size...
Regular readers have had a front-row seat for the first act. On Thursday we showed that hedge funds had round-tripped every dollar of AI net buying since the start of 2025 (Oct 15) in just five sessions, and that Goldman's Rich Privorotsky had concluded the capital to finance compute "cannot" grow as fast as demand for it (Oct 15). Overnight, we tallied the damage as quants suffered their worst day since August and hedge funds notched a third "never since COVID" day of 2026 (Oct 16).