The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
© 2025 TheOutpost.AI All rights reserved
Curated by THEOUTPOST
On Mon, 18 Nov, 4:01 PM UTC
2 Sources
[1]
Banks and Private Finance Seek Slices of $1 Trillion AI Pie | PYMNTS.com
Big banks and private finance groups are both chasing the artificial intelligence (AI) craze. But for at least one of those Wall Street banking giants -- Morgan Stanley -- there's plenty to go around, Bloomberg News reported Sunday (Nov. 17). That report tells the story of a recent dinner hosted by Morgan Stanley bankers, and attended by representatives of private capital titans like Apollo Global Management and KKR. Morgan Stanley, the report said, argued that bankers and private finance groups should work together. Bloomberg says its analysis estimates that it will take at least $1 trillion to fund the data centers, electricity supplies and communications networks required to bring about a future where AI transforms "everything," while others put the total cost at twice that amount. "The view is very bullish," said Dominik Thumfart, head of EMEA infrastructure and energy origination at Deutsche Bank, which has worked on $17 billion worth of data center projects over the past three years. "This market will remain a major growth area on the financing side for several years to come. The investing curve is very upward looking." Banks, the report said, are scrambling to stay on top of the AI frenzy. For example, banks such as JPMorgan Chase have dedicated infrastructure teams, sources told Bloomberg, with one rival banker saying he doesn't have enough staff to handle the glut of data center deals. The same is true for debt funding, the report notes. At the Morgan Stanley dinner, the bank's representatives said lenders don't have the balance sheets to sate the desire for credit, leading to its offer to team up with private capital outfits. Meanwhile, recent PYMNTS Intelligence research finds that -- in spite of the growing dependence on generative AI (GenAI) for medium-impact tasks such as financial reporting and data visualizations -- many CFOs say they've seen limited return on investment (ROI). "Only 13% of CFOs say they are seeing 'very positive' ROI, down from 27% in March," PYMNTS wrote last week. "Additionally, 65% of CFOs cite limited ROI as a drawback to implementing AI across their organizations. This decline in ROI sentiment suggests that while CFOs recognize the technology's potential, they are still grappling with its full impact on their bottom lines." At the same time, many companies with at least $1 billion in yearly revenue are committed to increasing their GenAI investments in the next year.
[2]
Wall Street Bankers Spot a Fat Payday in $1 Trillion AI Hysteria
At a dinner hosted by some of Morgan Stanley's top bankers in New York last month, one topic dominated the table talk: the fortunes to be made from the frenzy around artificial intelligence. In the room were many of the marquee names of private capital. Apollo Global Management Inc., Ares Management Corp., Blackstone Inc., HPS Investment Partners, KKR & Co. and Oaktree Capital were all invited, the very same firms who've recently emerged as a serious threat to Wall Street banks' long reign over the lucrative world of corporate finance.
Share
Share
Copy Link
Major banks and private finance groups are competing for a slice of the estimated $1 trillion AI infrastructure market. Morgan Stanley proposes collaboration between traditional banking and private capital to meet the massive funding requirements for AI's future.
The artificial intelligence (AI) boom has sparked a fierce competition among Wall Street banks and private finance groups, all vying for a piece of what could be a trillion-dollar opportunity. At the heart of this financial frenzy is the massive infrastructure required to support AI's transformative potential across industries 1.
Bloomberg's analysis estimates that at least $1 trillion will be needed to fund the essential components of AI's future, including data centers, electricity supplies, and communications networks. Some experts suggest the total cost could reach as high as $2 trillion 1.
Dominik Thumfart, head of EMEA infrastructure and energy origination at Deutsche Bank, expressed a bullish outlook on the market: "This market will remain a major growth area on the financing side for several years to come. The investing curve is very upward looking" 1.
Major financial institutions are racing to position themselves at the forefront of this AI-driven financial boom:
The involvement of private capital firms in this AI funding race is significant. Companies like Apollo Global Management, Ares Management Corp., Blackstone Inc., HPS Investment Partners, KKR & Co., and Oaktree Capital have emerged as formidable players in corporate finance, challenging the traditional dominance of Wall Street banks 2.
Morgan Stanley's proposal for collaboration between banks and private finance groups underscores the scale of the funding required. The bank argues that traditional lenders lack the balance sheet capacity to meet the growing demand for credit in the AI sector 1.
Despite the enthusiasm surrounding AI investments, recent PYMNTS Intelligence research reveals that many Chief Financial Officers (CFOs) are experiencing limited returns on investment (ROI) from generative AI implementations:
These findings suggest that while the potential of AI is widely recognized, many companies are still grappling with how to effectively leverage the technology to impact their bottom lines.
Reference
[2]
As tech giants pour billions into AI development, investors and analysts are questioning the return on investment. The AI hype faces a reality check as companies struggle to monetize their AI ventures.
5 Sources
5 Sources
Major financial institutions like Goldman Sachs, Citigroup, and JPMorgan Chase are alerting investors to emerging risks associated with the widespread adoption of artificial intelligence, including AI hallucinations, cybercriminal exploitation, and potential impacts on workforce dynamics.
3 Sources
3 Sources
As AI enthusiasm soars, concerns grow about its impact on productivity and the broader economic landscape. Experts warn of potential disappointment and urge caution amid weakening economic indicators.
2 Sources
2 Sources
Major tech companies plan to invest over $320 billion in AI infrastructure for 2025, despite market skepticism and the emergence of efficient alternatives like DeepSeek.
18 Sources
18 Sources
Major tech companies face investor scrutiny over AI investments as Wall Street demands clearer evidence of profitability. Despite significant AI advancements, the financial returns remain uncertain, leading to mixed market reactions.
5 Sources
5 Sources
