David Solomon doesn’t mince words. The Goldman Sachs chief executive sees markets gripped by optimism. “We are definitely in a moment where there’s more greed than there is fear,” he told CNBC’s Leslie Picker on Tuesday. (CNBC)
His timing carries weight. OpenAI, Anthropic and SpaceX stand on the verge of public debuts that could reshape capital markets. Valuations in the hundreds of billions or even trillions. Fundraising targets measured in tens of billions. One of the busiest stretches of equity issuance in years looms. And Goldman sits at the center, positioned to advise on several of these deals.
Solomon’s message lands as a blend of reassurance and caution. Plenty of liquidity exists, he argues. Companies that burn cash should raise while they can. “When capital’s available, if you’re capital consumptive and it’s available, take the capital,” he said. Yet he acknowledges the flip side. Greed turns to fear fast. Exuberance lasts longer than skeptics expect. “There’s a good chance that we’re earlier in the cycle than later.”
Recent signals support his view. Alphabet announced plans for an $80 billion equity raise to fund artificial intelligence infrastructure. Its shares held up. That performance, Solomon noted, shows investors remain hungry for AI exposure despite the scale of coming supply.
But the numbers dwarf past benchmarks. SpaceX aims for a June 12 listing at a $1.75 trillion valuation, seeking to raise $75 billion, according to reports cited in Yahoo Finance. Anthropic eyes an October debut with a $30 billion raise at $900 billion. OpenAI could follow in the fourth quarter, though questions linger over missed revenue targets, legal fights and readiness. U.S. IPO proceeds sit at $28.4 billion so far this year. These three alone could eclipse that total.
Other AI players add to the pressure. Firms building data centers, sourcing chips and expanding infrastructure also hunt vast sums. Private equity sponsors face mounting pressure to deliver exits after years of holding large stakes. Solomon predicted earlier this year that 2026 would bring “very, very large IPOs, unprecedented in size.” Events now test that forecast.
Wall Street banks jockey aggressively. Solomon himself slid into Elon Musk’s direct messages on X as Goldman pursued a lead role on any SpaceX offering. (Bloomberg) Competition for these marquee mandates runs hot. Success brings prestige and fees. Failure means watching rivals claim the spoils.
Optimism around artificial intelligence runs deep. Solomon has pushed back against doomsday predictions of mass job loss. In a May guest essay he called fears of an “AI job apocalypse” overblown. Productivity gains and new opportunities should outweigh displacement, he wrote. (New York Times)
That stance aligns with his market commentary. Excitement about technology’s potential appears justified. Gains from AI companies could recycle into taxes, new ventures and further investment. A self-reinforcing loop, if sentiment holds.
Potential Risks in a Capital-Hungry Boom
Absorption questions persist. Can public markets digest supply of this magnitude without indigestion? Some analysts point to early-stage companies swinging at enormous addressable markets. Matthew Kennedy, senior strategist at Renaissance Capital, described the class as “early stage companies taking big swings at large markets.” Yet software incumbents face disruption risks from advancing models. Valuations already embed lofty growth assumptions.
Solomon himself flagged the speed of sentiment shifts. “Greed can turn into fear very quickly, but that doesn’t mean it will.” He points to record wealth and liquidity across the system. Equity and debt markets both stand open. Companies respond by filling their coffers now.
And they should. Capital-consumptive businesses in artificial intelligence require enormous outlays for compute, energy and talent. Delaying raises in a receptive environment carries its own opportunity cost. Better to build aggressively while investors line up.
History offers mixed lessons. Exuberance stretched for years during past technology cycles before cracks appeared. This time carries distinct features. Real revenue growth at leading AI firms. Tangible enterprise adoption. Heavy spending by incumbents like Alphabet to avoid falling behind. Those elements provide firmer ground than some prior manias.
Still, concentration risk looms. A handful of names dominate the narrative. Retail and institutional capital both chase the same stories. Any stumble at one of the leaders could ripple fast. Solomon’s bank, with its long memory of market cycles, understands this dynamic well.
Private credit markets add another layer. They have grown rapidly, offering alternatives to traditional bank lending. Solomon watches the space closely. It provides yet more liquidity for companies that might otherwise tap public equity sooner.
So the stage is set. A wave of mega-offerings. A banker-in-chief sounding a measured alarm on sentiment. Investors pouring in. Companies racing to scale. The test comes not in the raising but in the aftermath. Delivering on promises at trillion-dollar scale demands flawless execution.
Solomon bets exuberance has room to run. Markets have absorbed surprises before. “There’s plenty of liquidity in the system if the world continues to remain as optimistic,” he said. For now, greed holds the upper hand. The coming months will reveal whether that grip tightens or slips.
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