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Goldman Exec Says Investors Growing More Judicious on AI

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Goldman Exec Says Investors Growing More Judicious on AI

A senior Goldman Sachs executive says weaknesses are developing in the AI market as the cost of capital climbs.

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Speaking at The Information’s WTF Summit on Tuesday (Oct. 28) Goldman co-head of investment banking Kim Posnett argued that while she is “hugely bullish” on artificial intelligence (AI) overall, investors are becoming more cautious.

“What you’re seeing is not a change in AI sentiment, and from an investor standpoint, I think you’re seeing a repositioning and differentiation across the AI trade,” said Posnett, whose comments were reported by The Information.

She added that AI projects won’t fuel expected returns if rates remain elevated for a long period. “While AI itself is not a bubble, I think you can have bubbles within that,” she said.

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Investors are beginning to gravitate to vertically integrated companies that make frontier models, software and AI chips, Posnett noted. Goldman is playing key roles in major deals announced this week for some of the largest AI companies, including SpaceX’s GPU financing, Meta’s new stock offering and Anthropic’s planned initial public offering (IPO).

When asked about circular financing throughout the AI ecosystem, Posnett said she’s thinking “more about demand” but admitted there is some risk in tech giants such as Nvidia funding their own suppliers and customers.



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