QQQ•BlueBay fixed income CIO Mark Dowding said higher rates could gradually slow the AI buildout as companies focus more on cost containment. He said some managers are rationing token spending, though AI growth and infrastructure investment are not expected to stop.
Mark Dowding, fixed income CIO at BlueBay, said higher rates could slow the AI buildout through many small decisions. Companies beyond the AI sector are facing pressure from higher rates and are focusing more on cost containment, including on AI.
“It seems that token spend is starting to be rationed by many managers after an initial free-for-all,” Dowding said. He added that AI growth and infrastructure investment are not set to slow or stop, but the pattern of quarter-on-quarter acceleration across metrics may be starting to moderate.
