Despite recent market jitters sparked by precipitous stock drops in high-flying firms like CoreWeave Inc. (NASDAQ:CRWV), Goldman Sachs Asset Management believes the broader artificial intelligence (AI) trade remains structurally sound.

The 90/10 Funding Reality

Sung Cho, co-head of public tech investing, argues that fears of a debt-fueled bubble are misplaced because the vast majority of the sector’s massive infrastructure buildout is funded by robust corporate cash flows, not risky borrowing.

In an interview with CNBC, Cho acknowledged the market is currently fixated on “debt depreciation and doubts,” but insisted the underlying funding picture through 2026 is healthy.

He estimates the industry needs between $700 billion and $1 trillion for AI infrastructure over the next couple of years.

Crucially, Cho noted that fears of overleverage are exaggerated. “You fear that 90% of that is being funded by debt,” Cho said, correcting that misperception by stating, “It’s really only 10% that’s being funded by debt. 90% is funded by ...