Wall Street banking titan Goldman Sachs (GS) is building a team to finance AI infrastructure projects and other initiatives, according to The Wall Street Journal.
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The team will seek to lend to institutions and investors building data centers, as the race for artificial intelligence continues to heat up, with just a few AI startups collectively accumulating almost $1 trillion in value over the past year.
Recent research has also shown that worries about global stock valuations have reached a new high, with a majority of fund managers worldwide believing that AI stocks are in a bubble.
According to the outlet, Goldman Sachs’ new team will be housed within its global banking and markets division — the unit that pulled in 42% more investment banking fees for the financial services giant during its third quarter of Fiscal year 2025, driven by more mergers and acquisitions and debt underwriting.
Big Tech Ignores Bubble Calls, Bets Big on AI
Goldman Sachs’ new plan comes even as Big Tech companies and heavyweight asset managers alike have ignored alarms from stakeholders warning of an AI bubble. In fact, AI infrastructure spending by U.S. tech majors Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) is expected to reach almost $400 billion by the end of this year, according to estimates.
Just this week, it was confirmed that Microsoft, chip design giant Nvidia (NVDA), and Elon Musk’s AI startup xAI (PC:XAIIQ) are part of a consortium led by asset manager BlackRock (BLK) that has agreed to acquire Texas-based Aligned Data Centers in a deal that will value the latter at about $40 billion.
Moreover, Meta — which is building a $1.5 billion data center in Texas — is also reportedly close to finalizing financing of almost $30 billion for its data center project in rural Louisiana.
Is GS a Good Stock to Buy?
On TipRanks, Goldman Sachs’ shares currently have a Moderate Buy consensus rating from Wall Street analysts. This is based on six Buys and six Holds assigned by analysts over the past three months. However, the average GS price target of $834.75 indicates a 12% upside potential from the current level.
