Goldman Sachs CEO Warns Wall Street Is Showing More ‘Greed’ Than Fear Amid AI Boom
Goldman Sachs CEO David Solomon said that financial markets have moved into a period of investor “greed” as artificial intelligence companies prepare to seek billions of dollars in funding through stock sales, debt offerings, and potential initial public offerings.
Speaking with CNBC’s Leslie Picker, Solomon said the market still has enough liquidity to support major equity offerings from companies such as OpenAI, Anthropic, and SpaceX, even as the size of the expected fundraising wave raises questions about how much supply investors can absorb.
“There’s plenty of liquidity in the system if the world continues to remain as optimistic,” Solomon said. “We are definitely in a moment where there’s more greed than there is fear.”
OpenAI and Anthropic, two of the leading artificial intelligence model developers, as well as SpaceX, which includes Elon Musk’s AI company, could eventually seek public listings at trillion-dollar valuations. At the same time, other major technology companies are racing to raise money to fund data centers, chips, and other infrastructure required to power AI systems.
Solomon, whose bank is playing a key role in several of the transactions, downplayed concerns that the market may not be able to handle the coming wave. He pointed to Alphabet’s recent stock performance after the company announced plans for an $80 billion equity raise as an early sign that investors remain receptive to large AI-related offerings.
“The stock is trading very well,” Solomon said. “This is the first actual concrete data point for bringing something of this scale, and it’s encouraging.” Alphabet’s parent company plans to raise up to $80 billion in stock to help fund its AI infrastructure expansion, including a $10 billion investment from Berkshire Hathaway.
Data centers, advanced chips, and energy needs have turned AI into a capital-intensive business, forcing even some of the world’s largest technology companies to seek outside funding.”When capital’s available, if you’re capital consumptive and it’s available, take the capital,” Solomon said.
The Goldman Sachs chief acknowledged that the fundraising wave is unprecedented in size, but said record levels of wealth and liquidity across financial markets are helping support the activity. He also suggested that gains from AI companies could create a self-reinforcing cycle, as employees and investors recycle profits into taxes, new companies, and additional investments.
Still, Solomon warned that investor psychology can shift quickly. “Greed can turn into fear very quickly, but that doesn’t mean it will,” he said. “Exuberance can go on for big periods of time. … There’s a good chance that we’re earlier in the cycle than later.”
