Speaking at The Information’s WTF Summit on Tuesday (Oct. 28) Goldman co-head of investment banking Kim Posnett argued that while she is “hugely bullish” on artificial intelligence (AI) overall, investors are becoming more cautious.
“What you’re seeing is not a change in AI sentiment, and from an investor standpoint, I think you’re seeing a repositioning and differentiation across the AI trade,” said Posnett, whose comments were reported by The Information.
She added that AI projects won’t fuel expected returns if rates remain elevated for a long period. “While AI itself is not a bubble, I think you can have bubbles within that,” she said.
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Investors are beginning to gravitate to vertically integrated companies that make frontier models, software and AI chips, Posnett noted. Goldman is playing key roles in major deals announced this week for some of the largest AI companies, including SpaceX’s GPU financing, Meta’s new stock offering and Anthropic’s planned initial public offering (IPO).
When asked about circular financing throughout the AI ecosystem, Posnett said she’s thinking “more about demand” but admitted there is some risk in tech giants such as Nvidia funding their own suppliers and customers.
“It makes sense that they want to build closer partnerships with each other,” she said. “And I think it creates greater risk. I think both are true.”
A recent report by Reuters said the artificial intelligence boom drove the increase in core capital goods, with business spending on equipment still robust, even amid concerns about the cost of the AI infrastructure buildout.
A separate report by Bloomberg News cited Census data suggest that spending related to AI was still leading business investment, as it has all throughout 2026,
“AI-related investment continued to power capital spending through the quarter,” Bloomberg Economist Eliza Winger said in the report. “Looking ahead, some firms indicated their investment plans hinge on the outcome of the midterm elections and the path of Fed policy.”
Citi Wealth said in a report released earlier this month that the AI buildout is still in its early-to-middle stages. In spite of the “growing noise” around the artificial intelligence buildout, other signals remain strong, such as semiconductor demand, U.S. core capital goods orders and AI-related exports.
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