Wall Street’s biggest investment banks are witnessing a surge in dealmaking and financing activity as the global race to build artificial intelligence infrastructure accelerates. Executives from leading financial institutions say the ongoing AI investment “super cycle” is creating significant opportunities across equity offerings, debt financing, mergers and acquisitions, and large-scale infrastructure investments.
Speaking during earnings calls, Goldman Sachs CEO David Solomon said the build-out of AI infrastructure remains in its early stages and is expected to drive elevated levels of strategic transactions and capital formation for years to come. He described the current environment as a multi-year AI capital expenditure cycle, where companies require every available financing instrument to fund massive investments in data centres, semiconductors and AI platforms.
The optimism comes despite recent volatility in technology stocks, particularly chipmakers, as investors assess high valuations and the sustainability of AI-related spending. Nevertheless, banks remain confident that demand for capital will continue growing as companies expand AI capabilities and digital infrastructure.
Recent transactions have already generated substantial fees for investment banks. These include SK Hynix’s $26.5 billion ADR offering, SpaceX’s record $86 billion initial public offering, and financing activities linked to several leading AI companies. Goldman Sachs is also expected to play a key role in the upcoming Anthropic IPO, while OpenAI has reportedly filed for its own U.S. public listing.
Morgan Stanley CEO Ted Pick highlighted the rapid increase in projected AI infrastructure spending. According to the bank’s estimates, global data centre capital expenditure, which was expected to reach $575 billion in 2026, is now projected at approximately $850 billion. Forecasts for 2027 have increased from $700 billion to nearly $1.3 trillion, while 2028 spending could approach $1.5 trillion. Morgan Stanley estimates that total AI-related capital expenditure could eventually reach $10 trillion over the coming years.
Citigroup CEO Jane Fraser also noted that AI has become one of the dominant topics in discussions with corporate clients, with increased investments spanning technology, data centres, energy and defence sectors. Meanwhile, Bank of America recently extended a $520 million credit facility to OpenAI, marking the bank’s first direct loan to the AI company. According to internal estimates, the bank has helped raise nearly $500 billion for AI-related companies since 2025, accounting for around 60% of fundraising in investment-grade debt, leveraged finance and equity capital markets.
JPMorgan Chase continues to finance large AI infrastructure projects as well, including data centres supporting next-generation computing. Bank executives noted that the AI boom is also creating indirect business opportunities across construction, utilities and infrastructure, driving demand well beyond the technology sector.
As global investment in artificial intelligence continues to expand, financial institutions expect the AI-driven capital spending cycle to remain a major driver of global fundraising, corporate financing and strategic dealmaking for years ahead.
Disclaimer: This report has been editorially prepared using publicly available information. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify important information through official sources.
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