Goldman Sachs sees AI fueling M&A boom
Goldman Sachs executive Christina Minnis expects merger and acquisition activity to increase as companies compete to build artificial intelligence infrastructure. She said AI-related spending will drive transactions across multiple sectors.
Minnis noted that credit markets remain healthy, supporting large AI-focused acquisitions. Both traditional banks and private lenders remain active. This environment can support leveraged buyouts and corporate acquisitions targeting AI-related assets including specialized chips, networking equipment, cooling systems, and power solutions.
She outlined an improving outlook for corporate deals in the second half of 2025 and into 2026. Companies are accelerating capital expenditure on data centers, power systems, and networking equipment needed for AI workloads. These investments create acquisition opportunities and financing needs across industries.
The forecast fits Goldman’s broader view: AI capex will keep rising while financing stays available. Companies seeking scale and technical capabilities are expected to return to the merger market more actively. Activity will concentrate in areas where AI buildout requires the most capital investment.
What is going on in infrastructure is really incredible, which is going to drive significant financing, driven by what’s going on in AI, computing and data centers. There’s a significant amount of capital raising that’s going to be required over the next decade,Minnis said.
Goldman estimates global AI investment could be near $200B in 2025, with tech giants alone spending over $250B on infrastructure. The bank's investment unit projects that major tech companies' AI capital expenditures could exceed $250 billion in 2025. These spending levels typically lead to consolidation among equipment makers, software providers, and energy infrastructure companies.
The bank estimates that hyperscale technology companies will drive much of the AI infrastructure spending surge. Their investments create demand for specialized equipment and services, leading to acquisition opportunities throughout the supply chain. Energy companies also face increased demand as data centers require more power capacity.
The comments come after months of limited deal activity as executives waited for clearer borrowing costs and company valuations. Earlier this year, Minnis noted that uncertainty around interest rates had held back transactions.
