Goldman Sachs: AI capex and higher rates are now competing for the same capital

Goldman's Global Strategy Views note on the two themes dominating investor conversations: AI and the rise in interest rates. The surge in AI infrastructure capex has eaten into free cash flow and pushed hyperscalers into debt and equity markets at the same time governments are borrowing more for energy, infrastructure and defense, lifting the cost of capital globally. For founders the relevant point is what a higher cost of capital does to growth-stage valuations and to who can afford to keep building data centers.