Goldman Sachs chief says AI IPO wave supported by investor optimism

Goldman Sachs chief executive David Solomon has dismissed concerns of an imminent artificial intelligence bubble, arguing that current market liquidity and investor sentiment are sufficient to absorb the shock of major technology companies entering the public markets. Speaking to CNBC’s Leslie Picker, Solomon stated that the US economy will remain stable provided investor optimism persists, noting that there is currently more "greed than fear" in the system.

The comments coincide with a significant wave of initial public offerings from leading AI firms. Anthropic has confidentially filed for a US listing following a $65 billion funding round that valued the company at $965 billion, with annual revenue reported at approximately $47 billion. OpenAI, valued at $852 billion in its last funding round, is expected to file in the coming weeks. Additionally, Elon Musk’s SpaceX, which includes its AI subsidiary xAI, is anticipated to begin trading in mid-June with a reported valuation of $1.75 trillion.

Solomon highlighted that unlike the dot-com era, current AI leaders generate substantial cash flow, which he believes differentiates them from earlier tech startups. He pointed to Alphabet’s recent stock performance as a concrete data point, noting that shares have more than doubled in the past year following an announcement for an $80 billion equity raise to fund AI compute infrastructure. The CEO described this positive market reaction as encouraging evidence that large-scale capital raises for AI expansion are being well-received.

Despite this confidence, economists have warned that the US economy may be becoming more fragile due to skyrocketing AI infrastructure spending financed by massive amounts of private credit. Solomon acknowledged that investor hunger could turn into fear quickly, though he suggested the market is likely earlier in the cycle than later. He maintained that record levels of wealth and system liquidity can support the unprecedented fundraising activity, provided the current mood of optimism holds.

Goldman Sachs is deeply embedded in this market activity, having partnered with Anthropic and other investment firms last month to create a new AI services company. The investment bank’s involvement in several of these major deals underscores its role in facilitating the transition of private AI giants into public entities. Solomon’s assessment suggests that while the scale of these listings is unprecedented, the financial system is currently equipped to handle the demand.