Who will finance the AI revolution?
Two Yale College alums who are leaders at Goldman Sachs recently discussed the source of capital for supporting an AI transition in a Q&A session. The conversation likely covered the financial aspects of implementing AI technology within various industries. It's interesting to hear insights from individuals with backgrounds in finance and technology. This dialogue could provide valuable perspectives on the intersection of AI and finance. It would be beneficial to learn more about the specific points raised during the discussion.
Deployment of AI and Investment in the Industry
Deployment of AI is accelerating exponentially, and the nascent industry requires unprecedented investment to grow. We spoke to two Yale College alums and leaders at Goldman Sachs—Kim Posnett, global co-head of investment banking; and Christina Minnis, global head of credit and asset finance and head of global acquisition finance—about where the capital to support an AI transition is coming from.
Goldman Sachs' Advice on AI Impact
Posnett: We don’t think about AI as just another technological shift. We think of it as a fundamental transformation that’s reshaping industries and competitive dynamics globally.
First, from a macroeconomic and geopolitical perspective, we have research teams and economists who are analyzing AI’s broad economic impact and how it influences productivity, labor markets, and global growth. This helps our clients understand how AI can drive efficiency and productivity gains.
Second, we also offer industry-specific insights. AI affects industries differently. We could be thinking about revolutionizing financial services through algorithmic trading and risk management, or revolutionizing healthcare through drug discovery and diagnostics, or transforming industrials via automation.
The third category of advice is client-centric strategies; this is core to what we do for corporate clients. We advise them on M&A strategies, who to buy, what’s the strategic rationale, what’s the competitive landscape, and how is it evolving.
Emerging AI Investors and Opportunities
Posnett: AI supercomputers are massive, highly complex systems that require huge amounts of capital to build. We’re seeing a broad and diversified set of players interested in investing across this landscape. There are funds who have historically provided capital to this space such as infrastructure funds, sovereign wealth funds, and pension funds.
There’s also a significant focus on partnerships with international investors right now, specifically in the Middle East.
AI Industry and Investment
Minnis: If you look back in time, we spent over $280 billion, in today’s dollars, putting a man on the moon; about $10 billion on the Panama Canal; and over $500 billion on the entire U.S. highway system. But we think AI hyperscalers are going to spend $300 billion just this year.
Because of the evolution of the U.S. capital markets, we’re not concerned by the size of this need. We have multiple places to raise this capital in a very cost-effective, constructive way.
Investing in AI: Public vs. Private Markets
Minnis: We believe that the public and private markets will coexist and grow, and that there will be use cases for both. That’s what makes all of us comfortable that even with a lot of volatility, these markets will ebb and flow and step in where the needs are.
Long-Term Considerations with AI Investments
Posnett: The build-outs of AI-enabled data centers are multi-year, in some cases multi-decade projects.
Minnis: What’s going on in the energy transition is also really significant.
Future of AI and Finance
Posnett: To thrive in the AI-first era, students need to embrace technology and human-centric leadership at the same time.
Minnis: It’s an exciting time to be at the forefront of what we anticipate will be a seismic shift in how society operates.