Goldman Sachs and Morgan Stanley Ride $17.2B Chinese Tech Boom Amid AI Tensions
Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) are among the Wall Street banks benefiting from a significant surge in Chinese tech fundraising, with a total of $17.2 billion raised this year. This boom comes as President Donald Trump and Chinese President Xi Jinping prepare to meet on Thursday, with artificial intelligence (AI) expected to be on the agenda.
The financial ties between the US and China remain strong despite their competition for AI dominance. Calls to slow down the race have gained support from Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman, and Tesla CEO Elon Musk. However, Trump has dismissed AI fears as a hoax, while his Treasury Secretary Scott Bessent argues that America 'can't pause' AI advancement.
According to Polymarket traders, the US and China have a 10% chance of agreeing to 'pace the AI frontier' by December 31. To achieve this, both governments would need to commit to measures that slow down AI development, such as safety conditions on model training or compute caps.