The Goldman Sachs Group, Inc. (NYSE:GS) CEO David Solomon joined CEO of NVIDIA Jensen Huang and other Wall Street chiefs on CNBC’s Closing Bell Overtime this week to detail the $500 billion AI infrastructure financing plan.
Solomon said, “We’ve got a deep belief and a lot of confidence in Nvidia.”
Why This Matters
Solomon framed Goldman’s role around raising capital and building distribution for the AI buildout. A Reuters Breakingviews column framed the same deal very differently, comparing it to how auto loans work, with computing power standing in as collateral and NVIDIA Corporation (NASDAQ:NVDA) effectively in the driver’s seat while its Wall Street partners ride along.
That contrast raises the real question: does Goldman’s involvement prove compute is now a legitimate lending category, or is Wall Street simply chasing the hottest deal in the room?
The Bull and Bear Case: Nvidia
Huang called the arrangement a “phase shift” in how people think about computing, moving it from a product businesses buy to genuine infrastructure they invest in. None of the $500 billion is Nvidia’s own money either. It’s entirely third-party capital that The Goldman Sachs Group, Inc. (NYSE:GS) and its partners have to go raise, which means NVIDIA Corporation (NASDAQ:NVDA) gets a much bigger financing pool without taking on the balance sheet risk itself.
However, that same fact can also be seen from the opposite point of view. Nvidia’s plan only works if Goldman and its partners can actually raise the money, a step entirely outside Nvidia’s control. The Reuters Breakingviews column makes the point sharply, comparing the arrangement to auto financing and describing Nvidia as taking the driver’s seat while its Wall Street partners simply come along for the ride.
The Bull and Bear Case: Goldman Sachs
Solomon said The Goldman Sachs Group, Inc. (NYSE:GS) brings “an extraordinary distribution network” to the partnership, on top of its own capital, and described a “deep belief in the direction of travel” over the next three, five, seven, and ten years. He said Goldman has spent significant time working out how to create the best access to capital for the people who need it to keep the AI buildout moving.
Goldman is putting its name and distribution network behind a deal before a single dollar has actually changed hands. The Breakingviews framing suggests The Goldman Sachs Group, Inc. (NYSE:GS) may be more of a passenger than a driver here too, since NVIDIA Corporation (NASDAQ:NVDA) is the one setting the system specifications and terms borrowers must follow.
Insider Monkey’s Hedge Fund Data
The Goldman Sachs Group, Inc. (NYSE:GS) was held by 83 hedge funds as of Q1 2026, up from 78 the prior quarter. NVIDIA Corporation (NASDAQ:NVDA) had 275 holders.
Among Goldman’s fellow financing partners, Morgan Stanley had 80 hedge fund holders, and Blackstone had 84, putting Goldman near the middle of that group.
Conclusion
Solomon’s confidence is real. However, The Goldman Sachs Group, Inc. (NYSE:GS) is still asking outside investors to trust an asset class that didn’t exist in its current form a year ago.
While we acknowledge the risk and potential of GS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: Amazon.com, Inc. (AMZN) vs. Apple Inc. (AAPL): Hedge Funds Favor One over the Other and The Crown Keeps Switching Hands: Apple Inc. (AAPL) vs NVIDIA Corporation (NVDA).
Disclosure: None. This article is originally published at Insider Monkey.
