AI investment, government borrowing drive global cost of capital higher: Goldman Sachs

New Delhi: Rising spending on artificial intelligence (AI) infrastructure and higher government borrowing are pushing up the global cost of capital, as companies raise more debt and equity to fund investment while governments increase borrowing for infrastructure, energy security and defence, Goldman Sachs said in a report.

The report said the two major themes dominating investor discussions — AI and rising interest rates — are increasingly linked as demand for capital rises across both the private and public sectors.