Goldman Sachs AI Deals Top $210 Billion
Goldman Sachs Group Inc. was a central figure in a trio of major artificial intelligence financing deals announced Monday morning. The bank co-led Meta Platforms Inc.’s $95 billion share offering. It also served as the sole structuring agent for a $40 billion SpaceX chip financing deal. Furthermore, it was named the lead-left bookrunner for Anthropic PBC’s blockbuster initial public offering, which is expected to be at least as large as SpaceX’s listing in June.
These deals, totaling at least $210 billion, provide a significant boost for Goldman. The bank is poised to earn a windfall worth tens, if not hundreds, of millions of dollars for its work on these transactions. Goldman’s prominent role in the Anthropic IPO surprised some observers, especially after Morgan Stanley had led efforts to expand the AI firm‘s debt revolver facility. The bank’s relationship with Anthropic is managed by San Francisco-based bankers Nick Giovanni and Jung Min, who also advise Nvidia Corp., a person familiar with the matter said. A Goldman representative declined to comment.
Goldman’s Strategy in the AI Boom
The financing surge is a direct result of Wall Street’s intense race to capitalize on the AI frenzy. This frenzy is driven by surging demand for chips and data centers required to support the technology. However, the high levels of debt and equity flowing into the sector, combined with significant cash burn at leading AI labs, have raised concerns about the sustainability of this financing.
These concerns are already reflected in the market. Shares of some neocloud companies, which provide computing power for AI models, have slumped in the past month. Goldman has aggressively positioned itself to benefit from this boom. This includes securing a place as the sole bank in a partnership that committed in August to financing $500 billion in AI chip deals for Nvidia customers.
Goldman’s Lobby Rockets
The five biggest firms earned almost more than $19 billion from underwriting revenue in the first nine months. Equity capital markets saw a 48% jump, while debt underwriting rose 13%. Goldman worked to get in on the boom.
Key Deals and Bankers
In the SpaceX deal announced Monday, Elon Musk’s company is purchasing chips from Nvidia, with financing backed by a lease with Apollo Global Management Inc. Goldman acted as the structuring agent, and its asset management division committed capital to the deal. The bank received a call from SpaceX months ago to initiate the process, according to another person familiar with the matter.
Goldman’s involvement in AI financing extends beyond these headline deals. In June, it was the lead bookrunner for SpaceX’s record-breaking IPO, earning $100 million in fees after years of relationship building by senior bankers Dan Dees, Kim Posnett, David Ludwig, and Susie Scher. The bank also reaped hundreds of millions more from incentive fees related to early investments for its wealthy clients.
