Chairman and CEO David Solomon Joins CNBC from Our Builders and Innovators Summit

Goldman Sachs Earnings & Strategic Outlook

• Reported second-highest quarterly revenue in firm history, with earnings per share exceeding Wall Street estimates by $2.
• All major segments—equities trading, investment banking, and wealth management—posted significant year-over-year gains.
• Management fees in asset and wealth management rose from under $5 billion eight years ago to a current quarterly run rate of $15 billion.
• Durable recurring revenues now constitute 45% of the firm's total revenue base, a strategic goal initiated eight years ago to reduce cyclicality.
• CEO David Solomon projects robust levels of M&A backlog and anticipates significant upcoming equity deals and IPOs.

Macroeconomic Environment & Capital Markets

• Solomon characterized the current inflation print and rising interest rates as manageable, noting that a 5% yield on the 10-year Treasury is not alarming.
• He identified record-low interest rates post-2008 as the historical anomaly rather than current higher rates.
• Acknowledged that government borrowing and high demand for AI capital create some crowding-out pressure on the cost of capital.
• Disagreed with views (e.g., Broadcom CEO) that capital availability is a primary constraint for the AI sector, asserting that capital is abundant for projects with strong returns.
• Stated that while financing markets are functioning exceptionally well, capital remains disciplined and seeks the highest-return opportunities.

IPO Market & AI Valuation Trends

• The IPO market is described as "wide open," with the primary barrier being valuation alignment between buyers and sellers rather than a lack of capital.
• Solomon advised that founders should delay public listings as long as private capital suffices for growth, noting the operational pressure of quarterly earnings.
• Highlighted that companies like SpaceX and potential listings by Anthropic and OpenAI will serve as new data points for public market valuation of large AI firms.
• Noted that recent market volatility may have forced some companies to delay IPOs by 10–15% from three-month-old expectations, but this does not indicate a closed market.

AI Governance, Safety, and Infrastructure

• Goldman Sachs requires real human accountability for every AI model deployed, citing two decades of experience with auditable AI trading systems.
• Solomon rejected the binary choice between unregulated innovation and burdensome regulation, advocating for "auditable processes" and strong risk controls.
• The firm is engaged in partnerships regarding AI compute infrastructure, specifically referencing a collaboration with NVIDIA.
• Expressed intent to join the "Alliance for Critical Infrastructure" to coordinate cross-industry responses with the government regarding potential AI failures.
• Compared the current scrutiny of AI leaders to the post-2008 financial crisis era, emphasizing that the financial industry's improved risk controls serve as a blueprint for the AI sector.

Corporate Leadership & Succession

• Regarding speculation on his replacement, Solomon confirmed the board and he are "singularly focused" on firm growth and returning no succession process is currently active.
• He reaffirmed his commitment to returning to the Innovators Conference next year, rejecting the idea of an imminent departure.
• Emphasized that succession planning is not a priority compared to serving clients and delivering shareholder returns in the current strategic cycle.