Goldman Sachs Predicts M&A Boom and AI-Driven Infrastructure Financing.

Goldman Sachs's Christina Minnis expects an increase in mergers and acquisitions by year-end and a significant boom in AI-related infrastructure financing, driven by the need for data centers, electricity suppliers, and communications networks. Minnis attributes the uptick in M&A to great credit markets and companies seeking deals previously off the table. The AI boom is expected to drive a decade of significant capital raising, with regulation in Europe potentially constraining banks' traditional role as infrastructure financiers and pushing more financing into capital markets.

Goldman Sachs' global head of credit finance, Christina Minnis, expects a surge in mergers and acquisitions (M&A) by the end of the year, driven by favorable credit markets and companies seizing opportunities previously deemed off-limits. Minnis also predicts a significant boom in artificial intelligence (AI)-related infrastructure financing, with a focus on data centers, electricity suppliers, and communications networks [1].

M&A activity has been building momentum following a slow start to the year, fueled by volatility surrounding US trade tariffs. Despite a few marquee deals, such as Union Pacific Corp.'s acquisition of Norfolk Southern Corp. for over $80 billion, the number of takeovers remains roughly flat compared to last year. Minnis attributes this to companies taking advantage of "great credit markets" to pursue acquisitions that were previously unattainable. Additionally, sponsor portfolio companies are returning to dealmaking after a period of focusing on dividend recaps [1].

The AI boom is set to be a major driver of infrastructure financing over the next decade. According to an analysis by Bloomberg News, at least $1 trillion will be spent on data centers, electricity suppliers, and communications networks. Minnis expects this rush to build the necessary infrastructure to support AI to drive significant financing, with a substantial amount of capital raising required [1].

In Europe, regulatory constraints are expected to limit banks' traditional role as infrastructure financiers, pushing more financing into capital markets. Minnis anticipates this shift to have a significant impact on the financing landscape in the region [1].

Separately, Goldman Sachs forecasts a substantial growth in the music industry, with revenue nearly doubling from $105 billion in 2024 to $200 billion by 2035. This growth is expected to be driven by streaming subscription price hikes, growth across recorded music, publishing, and live performances. Emerging markets are anticipated to account for 60% of new subscribers in 2024, despite currently low penetration rates [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-02/goldman-sachs-s-minnis-sees-m-a-ramp-up-ai-spending-boom
[2] https://www.ainvest.com/news/goldman-sachs-predicts-90-music-industry-revenue-growth-2035-2509/