Program and guest
A Bloomberg Talks interview with Goldman Sachs Chairman and CEO David Solomon, conducted on the sidelines of the Hong Kong Monetary Authority’s Global Financial Leaders’ Investment Summit. Original English title: Goldman Sachs CEO David Solomon Talks ‘Very Robust’ Demand for AI Deals | Bloomberg Talks.
Key points
- Capital market demand for AI deals is very robust: Large financing deals involving SpaceX, Meta and others are coming at the same time, an Anthropic IPO is approaching, and investors continue to closely watch the trajectory of AI demand and demand for computing power 1:00
- The supercycle will not rise in a straight line: Every previous technology supercycle has had recalibrations, pauses and restarts. It is hard to predict how much will ultimately be spent on infrastructure, and the evolution of new technology will also change the trajectory of spending 1:23
- Demand for computing power far exceeds supply: Strong financing will certainly be available over the next 12 to 24 months to meet some of that demand. Looking five to ten years ahead, he remains excited about the productivity gains from deploying technology 2:01
- The constraint on deal size is not the total amount of capital: Global public equity market capitalization is approximately 160 trillion US dollars. Capital is available; what really affects projects is cost. Excessive costs change returns, which in turn changes how projects are financed 3:19
- The technology supercycle will dominate capital markets and financing activity: Whether in Asia, the United States or Europe, M&A activity also benefits from a regulatory environment that permits large-scale deals 5:39
- After the midterm elections, discussion will quickly turn to 2028: Regardless of the outcomes in either house of Congress, substantive policy discussions will focus on the change of administration and the direction of the following two years 8:04
Background and notes
The subtitles cover 0:00–14:15. This article summarizes the main points of the full 14-minute, 15-second interview. The views and timestamps are paraphrased from the original subtitles; timestamps mark the start of the corresponding segments of the original remarks.