July 15, 2026, (Inside AI) — Wall Street's biggest banks are riding a wave of AI-driven dealmaking, with executives describing a 'super cycle' in capital expenditure that is fueling fees from equity offerings, debt issuance, and advisory work. Goldman Sachs CEO David Solomon told investors during an earnings call that the build-out of AI infrastructure remains in its early stages, predicting a multi-year investment cycle.
"The build-out of AI infrastructure remains in its early stages, and we believe this multi-year investment cycle will continue to drive elevated levels of strategic activity, financing, and capital formation across markets," Solomon said. He added that the industry "is in the middle of an AI capex super cycle" where demands exist to utilize every single financing instrument.
The comments come as investment banks report strong fees from landmark deals. Goldman Sachs was lead left underwriter on SpaceX's record $86 billion initial public offering, while Citigroup earned over $70 million as a joint global coordinator on SK Hynix's $26.5 billion ADR offering. Bank of America has helped raise nearly $500 billion for AI-related companies since 2025, accounting for 60% of such fundraising across investment-grade debt, leveraged finance, and equity capital markets, according to internal data seen by Reuters.
Yet the exuberance faces headwinds. July has been rough for technology stocks, especially microchip makers, as investors wrestle with high valuations and question the longevity of the AI capex boom. The tension underscores a broader debate: whether AI spending is a sustainable secular trend or a bubble fueled by hype.
The Financing Machine Behind AI's Build-Out
The AI infrastructure boom is not just about equity. Banks are extending credit lines and arranging debt packages. Bank of America recently extended a $520 million credit line to OpenAI, its first loan to the AI company, a person familiar with the matter told Reuters. Meta Platforms is working with Morgan Stanley and JPMorgan Chase on a roughly $13 billion financing package for a data center in El Paso, Texas, Reuters reported in May.
JPMorgan CFO Jeremy Barnum noted that demand is trickling down to non-obvious sectors. "It's like the comments about data centers wind up creating a lot of demand for plumbers and electricians, so you wind up seeing it in sort of slightly non-obvious places", he said, adding that it was hard to say if such demand was directly AI-related.
Citigroup CEO Jane Fraser told investors that AI was "dominating a lot of the conversation" with spending on technology, data centers, energy, and defense accelerating. Bank of America CEO Brian Moynihan said on a conference call: "Overall, the U.S. economy has proved more durable than expected, supported by the strong consumer, ongoing AI-driven investments across the board and easing energy costs, though inflation and tighter monetary policy remain key risks."
The pipeline remains robust. Goldman Sachs and Morgan Stanley are poised to play major roles in the upcoming listing of Anthropic, while rival OpenAI has also filed for a U.S. IPO. Stephen Biggar, director of financial services research at Argus Research, said: "The AI-driven capex super cycle has benefited equity issuance, M&A activity and debt financing."
Valuation Jitters and the Capex Question
Despite the fee bonanza, skepticism is mounting. The recent tech stock selloff highlights fears that AI infrastructure spending may not yield proportional returns. History offers parallels: the dot-com boom saw massive investment in fiber optics and data centers that took years to monetize. Today's AI build-out—spanning chips, energy, and real estate—carries similar risks of overcapacity.
Bank executives acknowledge the uncertainty but emphasize the breadth of demand. Solomon's 'super cycle' framing suggests a structural shift, not a speculative frenzy. Yet the reliance on a handful of mega-deals—SpaceX, SK Hynix, Anthropic—concentrates risk. If the AI capex narrative falters, the fee pipeline could dry up quickly.
For now, Wall Street is all in. The AI super cycle is minting fees and reshaping capital markets. Whether it ends in a soft landing or a bust depends on the real-world returns from trillions in spending.
