Goldman CEO Solomon says AI financing remains strong despite market jitters

Speaking in an interview with CNBC’s Leslie Picker, Solomon noted that his firm has maintained a high level of activity in artificial intelligence capital markets deals over recent weeks. Despite growing investor anxiety and a sweeping reassessment of the massive capital expenditures required for the booming technology sector, Solomon indicated that the pipeline for these transactions remains robust and that he expects this momentum to persist.

"There’s still very strong demand for investments in the AI infrastructure build and the technology around the growth of AI," Solomon told CNBC. He emphasized that while various external pressures are currently influencing market dynamics, the core underlying fundamentals driving the adoption of artificial intelligence remain firmly intact.

Financial markets have experienced significant volatility lately, driven in part by shifting political landscapes and regulatory uncertainty. Solomon pointed out that changes in the political environment are among the primary factors contributing to short-term market adjustments. These shifts naturally create recalibrations, leading to ups and downs that investors are currently witnessing across major equity markets.

Despite these near-term headwinds, Solomon expressed unwavering confidence in the long-term potential of the technology. "I still deeply believe in the long-term trajectory of the power of AI in our economy to drive productivity," he said, echoing the sentiments of many corporate leaders who view artificial intelligence as a foundational pillar for future economic growth.

The commentary from Goldman Sachs’ chief executive comes at a particularly delicate time for the technology sector. AI-related stocks, which include prominent semiconductor manufacturers, hardware suppliers, and neocloud providers, have tumbled sharply in recent weeks. Investors have grown increasingly cautious, carefully scrutinizing whether the hundreds of billions of dollars currently being poured into data centers and specialized hardware will eventually generate adequate financial returns.

This ongoing market selloff initially gathered momentum ahead of the U.S. midterm elections, as institutional and retail investors alike began to question the timeline and profitability of the infrastructure build-out. However, the downward pressure intensified significantly after Democrats secured sweeping victories in the midterms. The election results immediately fueled concerns among investors that a more politically empowered opposition could introduce stringent regulatory hurdles, potentially slowing down the rapid expansion of the data center industry and limiting power consumption permits.

The shifting sentiment and regulatory concerns arrive at a critical junction for the broader industry, particularly for AI model developer Anthropic. The high-profile lab is currently preparing for a potential initial public offering that could serve as one of the most definitive tests yet of public-market appetite for pure-play artificial intelligence companies. Goldman Sachs is positioned among the lead underwriting banks managing that complex IPO process.

When asked about the upcoming market debut, Solomon maintained a measured outlook while declining to provide granular details about the private deliberations. "We’ll see, obviously, if this IPO moves forward, how it all plays out," Solomon said. He added, "I would say that the market environment is still pretty constructive."

Beyond the immediate financial markets and impending IPOs, Solomon also directly addressed the mounting political resistance surrounding data center construction. Local opposition, environmental concerns, and debates over energy consumption have increasingly become flashpoints in communities designated as sites for massive new data center campuses. Solomon pushed back against these hurdles, arguing that this digital infrastructure is not only essential to the continued growth of the U.S. economy, but that it can also be engineered and constructed responsibly.

He cautioned against driving technological investment away from domestic shores due to excessive friction or regulatory delays. "We certainly don’t want this infrastructure going to places outside the U.S., which is what will naturally happen because the demand for compute is there," Solomon concluded.