Wall Street Banks Cash In on $17.2 Billion Chinese Tech Boom Amid AI Tensions
Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) are benefiting from a significant surge in Chinese tech fundraising, with $17.2 billion raised this year alone.
The financial ties between the US and China remain strong despite their competition for AI dominance. Calls to slow down the AI race have gained support from key figures like Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman, as well as Tesla CEO Elon Musk.
However, Trump has dismissed concerns about AI, while his Treasury Secretary Scott Bessent argues that America 'can't pause' AI advancement. Democratic Senator Bernie Sanders has urged Trump to seek a similar agreement with China, but it seems unlikely given the current odds of 10% for an AI truce by Dec. 31.
Wall Street is becoming increasingly involved in facilitating both sides of the US-China AI competition. According to LSEG data, US banks have helped arrange 19 Chinese high-tech share sales worth $17.2 billion this year, nearly 30% of the sector's total issuance.