Large banks and private financial groups are both pursuing the artificial intelligence (AI) craze.
But for at least one of these Wall Street banking giants… Morgan Stanley — there’s a lot to do, Bloomberg News reported Sunday (November 17).
This report tells the story of a recent dinner hosted by Morgan Stanley bankers and attended by representatives from titans of private capital like Apollo Global Management And KKR. According to the report, Morgan Stanley believes that bankers and private financial groups should work together.
Bloomberg says its analysis estimates that at least $1 trillion will be needed to finance the project. data centerselectricity supplies and communications networks are needed to create a future where AI transforms “everything,” while others estimate the total cost at twice that amount.
“The view is very optimistic,” said Dominique Thumfarthead of EMEA infrastructure and origination at German Bankwho has worked on data center projects worth $17 billion over the past three years.
“This market will remain a major growth area on the financing side for several years to come. The investment curve is very upward.
Banks, according to the report, are scrambling to stay abreast of the AI frenzy. For example, banks like JPMorgan Chase have dedicated infrastructure teams, sources told Bloomberg, with one rival banker saying it doesn’t have enough staff to handle the glut of data center contracts.
The same goes for debt financingnotes the report. At the Morgan Stanley dinner, bank officials said lenders lacked the balance sheets to satiate the desire for credit, leading to the bank’s offer to partner with credit companies. private capital.
Meanwhile, a recent PYMNTS Intelligence study reveals that despite the growing reliance on generative AI (GenAI) for medium-impact tasks such as financial reporting and data visualization, many CFOs say they have given a limited return on investment (KING).
“Only 13% of CFOs say they are seeing a ‘very positive’ return on investment, compared to 27% in March,” PYMNTS wrote last week.
“Additionally, 65% of CFOs cite limited ROI as a downside of implementing AI through their organizations. This decline in ROI sentiment suggests that even as CFOs recognize the potential of technology, they are still grappling with its full impact on their bottom lines.
At the same time, many companies generating at least $1 billion in annual revenue are pledging to increase their investments in GenAI over the next year.
