Goldman Sachs CEO on AI, Debt, and America’s Future | Prof G Markets

Quick Overview

Goldman Sachs CEO David Solomon stated that while the firm executed strongly in 2025 with revenue growth of 60-65% since 2019, he is very concerned about the long-term US debt and deficit trajectory, believing a crisis or major event is needed to reframe the political mindset toward fiscal discipline.

Key Points: Goldman Sachs finished 2025 strong, with stock rising around 50%, achieving $58 billion in revenue and $17 billion in profit, demonstrating concrete progress from investments made over the last five to seven years. Solomon believes Asset and Wealth Management, particularly for the ultra-wealthy, offers strong secular growth, projecting high single-digit growth for fee-based revenue collectively. Regarding AI's impact on entry-level jobs, Solomon anticipates a flattening of headcount growth over the next three years as productivity increases, but expects overall employee numbers to rise over the next 5 to 10 years by reallocating freed capacity to client-facing roles. The CEO expressed significant long-term concern about the US debt and deficit, stating, "I am very concerned about the debt and deficit and our inability on either side of the aisle to control our spending." Solomon noted that short-term risks are exogenous events like geopolitics or cyber events that sap confidence, but the overall macro setup is constructive due to fiscal stimulus and capital investment around AI infrastructure. He dismissed the immediate threat of coordinated foreign dumping of US Treasuries, asserting that the chance of significant disruption in the short run is "very very low" because there are few alternatives for reserve currency holders. Solomon reflected on his own career, attributing his rise to CEO partly to hard work but significantly to "luck and serendipity," citing that the leadership transition occurred at a moment favorable to him.

Context: The interview features Goldman Sachs Chairman and CEO David Solomon speaking with Scott Galloway on Prof G Markets, with Solomon joining remotely from Davos, Switzerland, where he noted the unusually crowded environment due to high-profile attendees like Trump. The discussion centered on Goldman Sachs' recent performance, the firm's strategic focus areas, the long-term impact of AI on financial services employment, and Solomon's views on the broader US macroeconomic and fiscal health, contrasting short-term constructive signals with long-term debt concerns.