GoldmanInvestmentachs>ann02VPSIOAI/OBSGFA0808FAN1W/OAI/OBSSFAN2Poweringthe AlEra0101PSPS1STANIW/OAVODPSPSWOAW/OB
ContentsALetterfrom Dan DeesAHistoric ParadigmShift:AlUshersIn a New Erafor ComputingThe Power lmoerative:Generational Opoortunities and ChallengeFDataCenterDiplomacv:ANew ToolforGeopoliticalInfluence?Meeting theMoment withCanitalSoltine
ALETTERFROMDANDEESDanDeeEconomic progress is rarely-throughout historv. it'sbeerpunctuated by technologv-driven inflections.The inexorable forces of finance and technolog have shaped our wor d for centuries-dismantling barfers and forgingnew industriesin 19th century America, railroads catalyzed commercial activity by unlocking new markets, spaw ning industries likemail-ordeetail, and enabling Midwestern farmers to transport crops overseas. A century later, the internet ushered in a digital economyecost of hostingand transmitting data. linking global markets. and giving rise to e-commerce.Today. westand atefining era driven by artificial intelligence-and the proliferation of foundation models begettingnewaoower them.Seamenginesmarkedahistrical.Duringthe dot-om ena, 8008+ linvestedin,Ghoital econom through fater and ctheapered demands. Investment banks firstt-comera, acombination of venture capitalfundsnd large language models alone.Itwil bebuit with concrete,steel, andsliconeisroughly $128- inclusive of the equipmentinside-requiringneededtofuelit.Afteradecadeof41609%bv2030 asaresult of Al workloads that runsnotdesignedforthisfuture.Transmission andis stretch 5-7 vears. renew ab lesources ke wind and solar can only provideinternitentm solution.Soaring power demand is curently being met with marginal increasesinopment by liniting data center activity. Unlike previous infrastructure buildouts, the acceleratedpaceoredict how the next decadewill nfold, but Alis an economicfore that wllpermeateeveryindustryoweriscreating new urgency Corporate leadership should be thoughtulstrategic, andoppoGoldman Sachs has been at the epicenter of technological inflection points since our founding-inovating and iterating to provide the capita solutions necessar for fueling progres. This moment is no dferent, and we areDanDeesCoHeadofGlobalBankingand MarketsPOWERINGTHEAIERA
19THCENTURYRailroads80%215KshareofUSstockmarket*intoanationaleconomy.Thefirstlinvestment bankswereformed tochannel global capital int allway infrast ructure through a nascentcorporate bondmarket20THCENTURYElectrification$295B50GWcapitalraisedby utilitiescapacityaddedtopowergrid(1920-1930)(1920-1930)Electricity transfored productity through inovations lke HenryFord's movilfinancingandunlockeconomiesofscale,20TH/21STCENTURYTelecom&Dot Com$800B+39M+investmentin infrastructuremilesoffiber-opticcableslaidby2001The infrastructure laid to support the internet birthed a digitaleconomy and stil pays divdendstoday To drive progess acombination of venturecapitalfunds,active IPO andM&Amarketsand broadeningcredit mar kets unlocked the requste grow th capital.PRESENTArtificial Intelligence+160%$5Tdatacenterpowerdemandf...
