Goldman Ramps Tech, Costs Jump

Goldman is doubling down on technology and asset management, opting to spend big now even as signals from investment banking and trading are mixed. With over $500 million in extra operating costs this quarter alone, CEO David Solomon is betting that investments in AI, automation, and cloud solutions will improve efficiency and margins — but the payoff depends on robust markets and steady client inflows. Meanwhile, Goldman's asset and wealth management arm is surging, crossing $4 trillion in assets by mid-2026 and raising its margin target, but with deal activity subdued, the pressure is on AWM to deliver outsized results.

But here’s the catch: success hinges on whether equities and wealth management can offset softer fixed income and advisory revenues. Goldman’s rapid deployment of new private equity funds — $11.7 billion just raised, with over a third already put to work — is a high-stakes bet on mid-market deals. And while a new retail partnership with IG Wealth Management opens the door to a million Canadian clients, leadership changes like the retirement of longtime investment chief Sharmin Mossavar-Rahmani and the upcoming exit of distribution head Matt Gibson could test execution just as the firm raises its growth targets.

Featuring insights from David Solomon and Michael Bruun, plus reporting from Reuters and Financial News London.

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