America’s largest banks, including JPMorgan Chase, Wells Fargo, Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley, outlined the risks of financing artificial intelligence infrastructure during their third-quarter earnings calls. Estimated bank exposure to AI-adjacent sectors stands at approximately $800 billion, representing about 0.8% of total bank assets, including traditional lending, private credit structures, and dedicated project vehicles. Leading tech firms’ combined AI-related capital expenditure is projected to exceed $1 trillion across 2025 and 2026. None of the banks signaled an immediate pullback, citing fee income as too attractive to abandon. Banks are using syndication and significant risk transfer mechanisms to move debt off their balance sheets, often into less-regulated private credit funds. The Bank for International Settlements has warned about potential financial stability risks stemming from the AI buildout.
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