Goldman Sachs chief executive David Solomon believes that the AI boom will have a set of winners and losers, just like any other investment cycle of the past.
In a new CNBC interview, Solomon says money pouring into AI is now split between two very different risk profiles.
He says there’s a big difference between Big Tech firms funding multi-billion-dollar deployments with durable cash flows and startups relying entirely on risk capital. According to Solomon, those who will be wiped out in the years to come will be AI startups.
“Obviously, the big hyperscalers are big businesses that have enormous cash flow. And there’s no question they’re taking more of their cash flow and investing it in these projects, but they still have a lot of free cash flow. These are the biggest, most profitable companies in the world, and I think they stand pretty strongly to the obligations they’re making…
I don’t get too concerned about that. Where I think it gets more complicated is when you’re talking about new companies and private capital formation, and there are going to be winners and losers. And that’s more risk capital.”
Solomon also highlights that the long-term trajectory of AI remains intact despite volatility or valuation swings along the way.
“This is a long-term secular trend. And I do think you have to go back and look at other long-term secular trends. They ebb and flow, but the long-term trends are in place.”
He says his conviction is anchored on persistent real-world productivity gains across the corporate landscape.
“So if you and I are sitting here and asking what’s going to happen 15 years from now, I’ve got a lot of confidence that the economic benefit, the productivity gains from this technology being deployed in enterprises broadly are going to be extraordinary.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.