On August 1, 2026, Goldman Sachs declared that the current investment cycle demands more capital than any before it, driven by artificial intelligence.
The bank calls this an AI-fueled "capex super cycle" stretching far beyond the space of chips and software touching energy, infrastructure, and data centers. The Federal Reserve, meanwhile, is mostly observing without intervention.
Wall Street expects hyperscalers to spend $527 billion on capital expenditures in 2026. Goldman argues this could surge past $700 billion as companies ramp up investments.
David Solomon, CEO of Goldman Sachs, highlights how the capital need ripples outward: every data center requires power, every power source demands infrastructure, and every piece of infrastructure needs financing. This chain reaction drags in industries that seem unrelated to AI at first glance.
The bank anticipates a boom in investment banking and capital markets as firms across sectors scramble for financing. Expect a rise in mergers and acquisitions, corporate loans, and private equity deals during the next few years.
This cycle differs from past booms. The dot-com and shale energy revolutions leaned heavily on private capital with public companies in a supporting role. Now, tech giants like Microsoft, Google, Amazon, and Meta are investing billions from their own coffers, alongside private investments targeting power generation, cooling tech, and fiber optics needed to sustain AI workloads.
Goldman says this is just the beginning. The surge in M&A, debt issuance, and infrastructure spending could intensify well into 2028.
