Wall Street Banks Ride AI ‘Super‑Cycle’ With Record Capital Raising as Menlo Ventures Launches $3 B Fund

Wall Street banks are capitalising on what Goldman Sachs describes as an “AI capex super cycle,” as demand for financing AI infrastructure surges across equity, debt and leveraged markets.

Banks See AI Infrastructure Driving Historic Deal Flow

Goldman Sachs, Bank of America and other leading firms report unprecedented volumes of AI‑related financing activity. Goldman’s CEO, David Solomon, frames the current environment as early in a multi‑year build‑out of AI infrastructure, fueling elevated strategic transactions and capital raising. “We’re in the middle of an AI capex super cycle,” he said, noting demand spans virtually every financing instrument.

Bank of America revealed that it has helped raise nearly $500 billion for AI‑related companies since 2025, covering investment‑grade debt, leveraged finance and equity capital markets. It now accounts for roughly 60% of that segment’s fundraising footprint. Recently, BofA also extended a $520 million credit line to OpenAI—its first direct loan to the AI company.

Other notable engagements include Citigroup’s $26.5 billion ADR offering for SK Hynix, with Citi earning over $70 million in fees, and Goldman acting as lead left underwriter for the SpaceX IPO, as well as preparing for Anthropic’s upcoming listing. These transactions underscore how AI investments are reshaping capital markets.

Menlo Ventures Opens $3 B Fund After AI Bet on Anthropic Pays Off

Meanwhile, in the venture capital arena, Menlo Ventures has closed a $3 billion fund—the largest in its five‑decade history. The raise was driven in part by its early $500 million “bet‑the‑firm” investment in Anthropic’s Series D round in 2024, which has grown to an estimated $14 billion valuation today.

That investment success has emboldened the firm to aggressively scale its AI‑focused portfolio, including early stakes in other model developers such as OpenRouter, Higgsfield, Legora and OpenEvidence. According to Menlo, the firm has deployed close to $250 million from the new fund to date.

Significance and Outlook

These developments reinforce AI’s transformative impact on capital allocation across the financial ecosystem. Wall Street banks are benefiting from a renewed injection of financing volume, reversing earlier caution, while venture firms are raising historic amounts to back the next wave of AI entrepreneurs.

Investors should watch whether this AI‑driven capital expansion will sustain its momentum amid macroeconomic pressures, and how increasing debt issuance, such as OpenAI’s bank line or Anthropic’s IPO push, will shape risk appetites. For VCs, Menlo’s fund signals a deepening trend: AI is now commanding not just strategic attention, but record‑setting financial backing.