The Goldman Sachs logo is displayed on the floor of the New York Stock Exchange on Wednesday, August 11, 2010 in New York City.
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alphabetThe company’s plan to sell $80 billion in stock to fund its artificial intelligence efforts will keep the market in “unprecedented territory,” Anthony Gutman, co-chief executive officer of Goldman Sachs International, told CNBC in an exclusive interview Wednesday.
Google’s parent company said in a statement Monday that its stock offering includes an allocation of $10 billion to Greg Abel’s Berkshire Hathaway for “funds to invest in world-class AI computing infrastructure to meet unprecedented customer demand.”
goldman sachs, JP Morgan Chase and morgan stanley acts as joint bookrunning manager for the underwritten securities. Goldman also acts as a private placement broker.
“First of all, let me say this is unprecedented territory, so we all approach this space with a degree of humility and caution and the right balance of focus,” Gutmann told CNBC’s Carolyn Ross on Europe Early Edition on Wednesday morning. “Yesterday’s Alphabet issuance bodes well for the pipeline. It was a record-breaking issuance at any level.”
Gutmann said there is “a lot of demand” for a large equity issue and that it looks “very manageable” as a percentage of stock market capitalization.
It comes as capital markets look poised for a record year, with a spate of mega IPOs scheduled.
SpaceX’s long-awaited flotation, scheduled for June 12, could be the largest IPO in history. Elon Musk’s company is aiming for a valuation of $1.75 trillion on the Nasdaq market.
Meanwhile, OpenAI and Anthropic also announced their intention to go public later this year.
“We’re excited about this. These are exceptional companies that should be able to raise this capital if they follow the right path,” Gutman added.
