Goldman Sachs CEO David Solomon’s comments on artificial intelligence flagged a financing risk with implications beyond Wall Street. How will companies fund an infrastructure expansion that could require trillions of dollars, and which projects will justify the expense? The bank’s third-quarter earnings results reflected the strength of its stock market businesses, with equities revenue jumping 72% from a year earlier.
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In his opening remarks Tuesday (Oct. 13), Solomon cited studies estimating that data center buildout in the United States could require more than $10 trillion through 2032, averaging roughly 3.6% of annual U.S. economic output. Client conversations indicate that demand for computing power exceeds supply, creating opportunities for Goldman to help arrange financing.
The opportunity comes with limits. Solomon said Goldman is being selective about the financing risks it takes and the capital it commits as projects become larger and more complicated. The eventual demand for computing capacity, and the money needed to supply it, remains uncertain.
During the analyst discussion, Solomon addressed whether financing could become a bottleneck for AI capital spending. Growing borrowing needs could put upward pressure on interest rates, affecting both potential returns and whether individual projects make financial sense, Solomon said.
“There will be a point in time when this recalibrates, resets for sure,” Solomon said.
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