Goldman Sachs CEO David Solomon: AI is a longterm secular trend, don't see it reversing

AI Technology & Market - The speaker expresses excitement about AI technology and the investments being made to deploy it in enterprises, anticipating significant productivity gains [4] - The market is currently optimistic about AI, potentially underestimating risks and overestimating the speed of adoption; adjustments and volatility are expected [5] - Despite potential short-term volatility, the long-term secular trend of AI is expected to bring extraordinary economic benefits and productivity gains [13][15] - Some AI-related assets may be overvalued, with earnings not meeting current expectations, which is typical in acceleration cycles [18] Capital & Financing - Hyperscalers are investing more of their substantial cash flow into AI projects and are considered financially strong [9] - Data center financing is viewed as real estate deals, with debt serviced by the output of the data centers, and the creditors are typically large, stable companies [10][11] - Private capital formation in new AI companies involves higher risk, with potential for both significant successes and failures [11][12] - Private credit is a large business, and it's important to differentiate between lending to established companies and financing data centers [21][25] - Underwriting standards and risk management are crucial in credit, and economic contractions will reveal the strengths and weaknesses of different lenders [26][27]