Goldman Sachs says concerns about OpenAI losing its leadership position in artificial intelligence may be premature, even as Google’s Gemini gains momentum.
In a new CNBC interview, Shung Cho, co-head of public tech investing and US fundamental equity at Goldman Sachs Asset Management, says the market is misreading both the funding backdrop and the competitive dynamics shaping the next phase of the AI race.
Cho says fears around how the AI buildout will be financed are overstated, noting that the bulk of spending is coming from strong balance sheets rather than fragile credit markets.
“If you think about the aggregate level of spend that we need, probably over the next couple of years, we think it’s about $700 billion to a trillion. What you fear is that 90% of that is being funded by operating cash flows. It’s really only 10% that’s being funded by debt.”
He adds that even the debt portion is concentrated among the strongest issuers in the market.
“The majority of that debt is actually going to be issued by Meta, which has a rating that’s better than the US government, and the bonds are trading inside of US Treasuries.”
Cho says that companies often cited as risk points, including CoreWeave and Oracle, represent only a small fraction of the overall funding picture.
“So we’re talking about CoreWeave, we’re talking about Oracle, we’re talking about two or three percent of the debt market of the entire funding picture. The vast majority is that the funding shape is actually in really, really good shape.”
According to Cho, concerns around these firms are being driven more by short-term issues than by any collapse in demand.
“They’re not facing a demand issue. There’s a little bit of supply chain backup issues that they’re dealing with, and that’s leading to a little bit of concern.”
Cho also addresses growing perceptions that Google’s Gemini has overtaken OpenAI’s models, saying that leadership in AI remains fluid.
“There’s also a little bit of this OpenAI with Google Gemini being the leading model now.”
But he warns against assuming that the current standings are permanent.
“We think that the model volatility is likely to continue to persist. The first AI models that are trained on [Nvidia] Blackwells are about to hit the market in Q1 of 2026. So, I wouldn’t necessarily write the obituary on OpenAI’s leadership quite yet.”
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.