Episode summary
Goldman Sachs CEO on AI, Debt, and America’s Future | Prof G Markets
Prof G Markets
· · Hosts: Ed Elson, Scott Galloway · Guests: David Solomon
Summary
Goldman Sachs chief executive David Solomon said 2025 was a constructive year for the firm and argued that 2026 should be constructive as well, despite the brief hit from April tariff and trade-policy shocks. He framed Goldman’s recent comeback as the result of a multi-year plan to grow core investment banking and markets while expanding asset and wealth management, transaction banking, and digital consumer banking.
Solomon said the firm’s biggest opportunity remains its core global banking and markets franchise, but he sees the strongest secular growth in wealth and asset management, especially serving the ultra-wealthy amid a generational wealth transfer. On AI, he argued that the technology will reduce some entry-level work and flatten headcount growth for a period, but not eliminate the need for talented people who build relationships and serve clients.
He was most concerned about U.S. debt and deficits over the medium to long term, warning that the country will need higher growth to justify current spending levels. He said the U.S. remains a reserve-currency economy with substantial latitude, but he does not believe deglobalization is a likely base case; in his view, trade and capital ties remain too deeply interconnected for abrupt structural breaks.
Key takeaways
- Solomon said Goldman’s 2025 results reflected five to seven years of restructuring and investment, not a sudden turnaround.
- He expects the firm’s core investment banking and markets businesses to stay the main earnings engine over the next five years.
- He sees wealth and asset management as Goldman’s strongest secular growth opportunity, driven by ultra-high-net-worth clients and wealth transfer.
- Solomon said AI will likely flatten headcount growth and constrain some entry-level roles, but he expects the firm to need more people over a longer horizon.
- He said U.S. debt and deficits are a serious long-term risk and argued higher growth will be necessary to stabilize the fiscal path.
- He does not view deglobalization as the base case and said the U.S. and global economies remain too interconnected for rapid structural separation.
Notable quotes
“2025 was a pretty constructive environment for our business, and I actually think 2026 is going to be a pretty constructive environment for our business, too”
“we've been executing on that aggressively and making good progress”
“I think the more interesting thing for us is what we're doing in asset and wealth management”
“I am very concerned about the debt and deficit and our inability on either side of the aisle to control our spending”
“I'm not a big believer in deglobalization”
How the episode opens
Today's number, $2.9 billion. That's how much US consumers spent on sushi from grocery stores in 2025. A 7% increase year-over-year. Ed, what did the sushi chef say to the bee? — What? — What's up, Bee? I have to go clean. We got David Solomon. I mean, we've got David Solomon coming on.
Dawned David Solomon. — Yeah. I had to I had to go dad joke. — I love the dad jokes as you well know. That was pretty good. I actually that that might have been one of your best. I I hate to say it. That was pretty good.
All right. How are you, Ed? — I'm doing very well. Um I I'm excited to hear how things are going. I know you are somewhere special right now. Why don't you tell everyone where you are? — I am in Davos for the first time in 26 years.
I can't When I was your age, I got invited here because I was a player. My guess is you're got a motion in a couple years and then I kind of pretty much everything in my life went sideways. Moved, divorce, my company went out of business and what do you know?
They didn't invite me back. And now and then all of a sudden I got an invite back and I thought, "Oh my god, I can't wait to go back and be the triumphant MacArthur like hero returning to Davos. And I'm like, "Okay, what am I doing here?
I'm not raising I'm not raising money. I'm not running for office. I'm not selling anything.
My life has changed so much since I was last here.
Yeah. What are you do? What like I mean, — Why am I here? — What What does your day look like?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai and human capital
- deficit spending
- us debt and foreign holders
- deglobalization risk
- goldman outlook
Companies and tickers mentioned
- GS
- Goldman Sachs
Watch the episode
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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