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Top AI models are getting really good at completing professional tasks, new OpenAI GDPval benchmark shows

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Hello and welcome to Eye on AI. In this edition…A new OpenAI benchmark shows how good models are getting at completing professional tasks…California has a new AI law…OpenAI rolls out Instant Purchases in ChatGPT…and AI can pick winning founders better than most VCs.

Google CEO Sundar Pichai was right when he said that while AI companies aspire to create AGI (artificial general intelligence), what we have right now is more like AJI—artificial jagged intelligence. What Pichai meant by this is that today’s AI is brilliant at some things, including some tasks that even human experts find difficult, while also performing poorly at some tasks that a human would find relatively easy.

Thinking of AI in this way partly explains the confusing set of headlines we’ve seen about AI lately—acing international math and coding competitions, while many AI projects fail to achieve a return on investment and people complain about AI-created “workslop” being a drag on productivity. (More on some of these pessimistic studies later. Needless to say, there is often a lot less to these headlines than meets the eye.)

One of the reasons for the seeming disparity in AI’s capabilities is that many AI benchmarks do not reflect real world use cases. Which is why a new gauge published by OpenAI last week is so important. Called GDPval, the benchmark evaluates leading AI models on real-world tasks, curated by experts from across 44 different professions, representing nine different sectors of the economy. The experts had an average of 14 years experience in their fields, which ranged from law and finance to retail and manufacturing, as well as government and healthcare. 

Whereas a traditional AI benchmark might test a model’s capability to answer a multiple choice bar exam question about contract law, for example, the GDPval assessment asks the AI model to craft an entire 3,500 word legal memo assessing the standard of review under Delaware law that a public company founder and CEO, with majority control, would face if he wanted this public company to acquire a private company that he also owned.

OpenAI tested not only its own models, but those from a number of other leading labs, including Google DeepMind’s Gemini 2.5 Pro, Anthropic’s Claude Opus 4.1, and Grok’s Grok 4. Of these, Claude Opus 4.1 consistently performed the best, beating or equaling human expert performance on 47.6% of the total tasks. (Big kudos to OpenAI for intellectual honesty in publishing a study in which its own models were not top of the heap.)

There was a lot of variance between models, with Gemini and Grok often able to complete between a third and a fifth of tasks at or above the standard of human experts, while OpenAI’s GPT-5 Thinking’s performance fell between that of Claude Opus 4.1 and Gemini, and OpenAI’s earlier model, GPT-4o, fared the worst of all, barely able to complete 10% of the tasks to professional standard. GPT-5 was the best at following a prompt correctly, but often failed to format its response properly, according to the researchers. Gemini and Grok seemed to have the most problems with following instructions—sometimes failing to provide the delivered outcome and ignoring reference data—but OpenAI did note that “all the models sometimes hallucinated data or miscalculated.”

Big differences across sectors and professions

There was also a bit of variance between economic sectors, with the models performing best on tasks from government, retail, and the wholesale trade, and generally worst on tasks from the manufacturing sector.

For some professional tasks, Claude Opus 4.1’s performance was off the charts: it beat or equalled human performance for 81% of the tasks taken from “counter and rental clerks,” 76% of those taken from shipping clerks, 70% of those from software development, and, intriguingly, 70% of the tasks taken from the work of private investigators and detectives. (Forget Sherlock Holmes, just call Claude!) GPT-5 Thinking beat human experts on 79% of the tasks that sales manager perform and 75% of those that editors perform (gulp!).

On others, human experts won handily. The models were all notably poor at performing tasks related to the work of film and video editors, producers and directors, and audio and video technicians. So Hollywood may be breathing a sigh of relief. The models also fell down on tasks related to pharmacists’ jobs.

When AI models failed to equal or exceed human performance, it was rarely in ways that human experts judged “catastrophic”—that only occurred about 2.7% of the time with GPT-5 failures. But the GPT-5 response was judged “bad” in another 26.7% of these cases, and “acceptable but subpar” in 47.7% of cases where human outputs were deemed superior.

The need for ‘Centaur’ benchmarks

I asked Erik Brynjolfsson, the Stanford University economist at the Human-Centered AI Institute (HAI) who has done some of the best research to date on the economic impact of generative AI, what he thought of GDPval and the results. He said the assessment goes a long way to closing the gap that has developed between AI researchers and their preferred benchmarks, which are often highly technical but don’t match real-world problems. Brynjolfsson said he thought GDPval would “inspire AI researchers to think more about how to design their systems to be useful in doing practical work, not just ace the technical benchmarks.” He also said that “in practice, that means integrating technology into workflows and more often than not, actively involving humans.”

Brynjolfsson said he and colleague Andy Haupt had been arguing for “Centaur Evaluations” which judge how well humans perform when paired with, and assisted by, an AI model, rather than always seeing the AI model as a replacement for human workers. (The term comes from the idea of “centaur chess,” which is what it is called when human grandmasters are assisted by chess computers. The pairing was found to exceed what either humans or machines could do alone. And, of course, centaur here refers to the mythical half-man, half-horse of Greek mythology.)

GDPval did make some steps toward doing this, looking in one case at how much time and money was saved when OpenAI’s models were allowed to try a task multiple times, with the human then coming in to fix the output if it was not up to standard. Here, GPT-5 was found to offer both a 1.5x speedup and 1.5x cost improvement over the human expert working without AI assistance. (Less capable OpenAI models did not help as much, with GPT-4o actually leading to a slowdown and cost increase over the human expert working unassisted.)

About that AI workslop research…

This last point, along with the “acceptable but subpar” label that characterized a good portion of the cases where the AI models did not equal human performance, brings me back to that “workslop” research that came out last week. This may, in fact, be what is happening with some AI outputs in corporate settings, especially as the most capable models—such as GPT-5, Claude 4.1 Opus, and Gemini 2.5 Pro—are only being used by a handful of companies at scale. That said, as the journalist Adam Davidson pointed out in a Linkedin post, the “Workslop” study—just like that now infamous MIT study about 95% of AI pilots failing to produce ROI—had some very serious flaws. The “workslop” study was based on an open online survey that asked highly leading questions. It was essentially a “push poll” designed to generate an attention-grabbing headline about the problem of AI workslop more than a piece of intellectually-honest research. But it worked—it got lots of headlines, including in Fortune.

If one focuses on these kinds of headlines, it is all too easy to miss the other side of what is happening in AI, which is the story that GDPval tells: the best performing AI models are already on par with human expertise on many tasks. (And remember that GDPval has so far been tested only on Anthropic’s Claude Opus 4.1, not its new Claude Sonnet 4.5 that was released yesterday and which can work continuously on a task for up to 30 hours, far longer than any previous model.) This doesn’t mean AI can replace these professional experts any time soon. As Brynjolfsson’s work has shown, most jobs consist of dozens of different tasks, and AI can only equal or beat human performance on some of them. In many cases, a human needs to be in the loop to correct the outputs when a model fails (which, as GDPval shows, is still happening at least 20% of the time, even on the professional tasks where the models perform best.) But AI is making inroads, sometimes rapidly, in many domains—and more and more of its outputs are not just workslop.

With that, here’s more AI news.

Jeremy Kahn
jeremy.kahn@fortune.com
@jeremyakahn

Before we get to the news, I want to call your attention to the Fortune AIQ 50, a new ranking which Fortune just published today that evaluates how Fortune 500 companies are doing in deploying AI. The ranking shows which companies, across 18 different sectors—from financials to healthcare to retail—are doing best when it comes to AI, as judged by both self-assessments and peer reviews. You can see the list here, and catch up on Fortune’s ongoing AIQ series.

FORTUNE ON AI

OpenAI rolls out ‘instant’ purchases directly from ChatGPT, in a radical shift to e-commerce and a direct challenge to Google—by Jeremy Kahn

Anthropic releases Claude Sonnet 4.5, a model it says can build software and accomplish business tasks autonomously—by Beatrice Nolan

Nvidia’s $100 billion OpenAI investment raises eyebrows and a key question: How much of the AI boom is just Nvidia’s cash being recycled?—by Jeremy Kahn

Ford CEO warns there’s a dearth of blue-collar workers able to construct AI data centers and operate factories: ‘Nothing to backfill the ambition’—by Sasha Rogelberg

EYE ON AI NEWS

Meta locks in $14 billion worth of AI compute. The tech giant struck a $14 billion multi-year deal with CoreWeave to secure access to Nvidia GPUs (including next-gen GB300 systems). It’s another sign of Big Tech’s arms race for AI capacity. The pact follows CoreWeave’s recent expansion tied to OpenAI and sent CoreWeave shares up. Read more from Reuters here.

California governor signs landmark AI law. Governor Gavin Newsom signed SB 53 into law on Monday. The new AI legislation requires developers of high-end AI systems to publicly disclose safety plans and report serious incidents. The law also adds whistleblower protections for employees of AI companies and a public “CalCompute” cloud to broaden research access to AI. Large labs must outline how they mitigate catastrophic risks, with penalties for non-compliance. The measure—authored by State Senator Scott Wiener—follows last year’s veto of a stricter bill that was roundly opposed by Silicon Valley heavyweights and AI companies. This time, some AI companies, such as Anthropic, as well as Elon Musk, supported SB 53, while Meta, Google and OpenAI opposed it. Read more from Reuters here.  

OpenAI’s revenue surges—but its burn rate remains dramatic. The AI company generated about $4.3 billion in the first half of 2025—up 16% on all of 2024, according to financial details it disclosed to its investors and which were reported by The Information. But the company still had a burn rate of $2.5 billion over that same time period due to aggressive spending on R&D and AI infrastructure. The company said it is targeting about $13 billion in revenue for 2025, but with a total cash burn of $8.5 billion. OpenAI is in the middle of a secondary share sale that could value the company at $500 billion, almost double its valuation of $260 billion at the start of the year.

Apple is testing a stronger, still-secret model for Apple Intelligence. That’s according to a report from Bloomberg, which cited unnamed sources it said were familiar with the matter. The news agency said Apple is trialing a ChatGPT-style app powered by an upgraded AI mode internally, with the aim to use it to overhaul its digital assistant Siri. The new chatbot would be rolled out as part of upcoming Apple Intelligence updates, Bloomberg said.

Opera launches Neon, an “agentic” AI browser. In a further sign that AI has rekindled the browser wars, the browser company Opera rolled out Neon, a browser with built-in AI that can execute multi-step tasks (think booking travel or generating code) from natural-language prompts. Opera is charging a subscription for Neon. It joins Perplexity’s Comet and Google roll out of Gemini in Chrome in the increasingly competitive field of AI browsers. Read more from Tech Crunch here.

Black Forest Labs in talks to raise $200 million to $300 million at $4 billion valuation. That’s according to a story in the Financial Times. It says the somewhat secretive German image-generation startup (makers of the Flux models and founded by ex-Stable Diffusion employees) is negotiating a new venture capital round that would value the company around $4 billion, up from roughly $1 billion last year. The round would mark one of Europe’s largest recent AI financings and underscores investor appetite for next-generation visual models. 

EYE ON AI RESEARCH

Can an AI model beat VCs at spotting winning startups? Yes, it can, according to a new study conducted by researchers from the University of Oxford and AI startup Vela Research/ They created a new assessment they call VCBench, built from 9,000 anonymized founder profiles, to evaluate if LLMs can predict startup success better than human investors. (Of these 9,000 founders, 9% went on to see their companies either get acquired, raise more than $500 million in funding, or IPO at more than a $500 million valuation.) In their tests, some models far out-performed the record of venture capital firms, which in general pick a winner about one in every 20 bets they make. OpenAI’s GPT-5 scored a winner about half the time, while DeepSeek-V3 was the most accurate, selecting winners six out of every 10 times, and doing so at a lower cost than most other models. Interestingly, a different machine learning technique from Vela, called reasoned rule mining, was more accurate still, hitting a winner 87.5% of the time. (The researchers also tried to ensure that the LLMs were not simply finding a clever way to re-identify the people whose anonymized profiles make up the dataset and cheat by simply looking up what had happened to their companies. The researchers say they were able to reduce this chance to the point where it was unlikely to be the case.) The researchers are publishing a public leaderboard at vcbench.com. You can read more about the research here on arxiv.org and in the Financial Times here.

AI CALENDAR

Oct. 6: OpenAI DevDay, San Francisco

Oct. 6-10: World AI Week, Amsterdam

Oct. 21-22: TedAI San Francisco.

Nov. 10-13: Web Summit, Lisbon. 

Nov. 26-27: World AI Congress, London.

Dec. 2-7: NeurIPS, San Diego

Dec. 8-9: Fortune Brainstorm AI San Francisco. Apply to attend here.

BRAIN FOOD

Are world models and reinforcement learning all we need? There was a big controversy among AI researchers and other industry insiders this past week over the appearance of Turing Award-winner and AI research legend Rich Sutton on the Dwarkesh podcast. Sutton argued that LLMs are actually a dead end that will never achieve AGI because they can only ever imitate human knowledge and they don’t construct a “world model”—a way of predicting what will happen next based on an intuitive understanding of things such as the laws of physics or, even, human nature. Dwarkesh pushed back, suggesting to Sutton that LLMs did, in fact, have a kind of world model, but Sutton was having none of it.

Some—such as AI skeptic Gary Marcus–interpreted what Sutton said on Dwarkesh as a major reversal from the position he had taken in a famous essay, “The Bitter Lesson,” published in 2019, which argued that progress in AI mostly depended on using the same basic algorithms but simply throwing more compute and more data at them, rather than any clever algorithmic innovation. “The Bitter Lesson” has been waved like a bloody flag by those who have argued that “scale is all we need”—building ever bigger LLMs on ever larger GPU clusters—to achieve AGI.

But Sutton never wrote explicitly about LLMs in “The Bitter Lesson” and I don’t think his Dwarkesh remarks should be interpreted as a departure from his position. Instead, Sutton has always been first and foremost an advocate of reinforcement learning in environments where the reward signal comes entirely from the environment, with an AI model acting agentically and acquiring experience—building a model of “the rules of the game” as well as the most rewarding actions in any given situation. Sutton doesn’t like the way LLMs are trained, with unsupervised learning from human text followed by a kind of RL using human feedback—because everything the LLM can learn is inherently limited by human knowledge and human preferences. He has always been an advocate for the idea of pure tabula rasa learning. To Sutton, LLMs are a big departure from tabula rasa, and so it is not surprising he sees them as a dead end to AGI. 



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Leaders at Davos are obsessing over how to use AI at scale

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  • In today’s CEO Daily: Fortune‘s AI editor Jeremy Kahn reports on the AI buzz at Davos
  • The big story: SCOTUS could upend Trump’s leverage to acquire Greenland.
  • The markets: Jolted by Trump’s renewed tariff threats.
  • Plus: All the news and watercooler chat from Fortune.

Good morning. I’m on the ground in Davos, Switzerland, for this year’s World Economic Forum. As Diane wrote yesterday, U.S. President Donald Trump’s arrival later this week along with a large delegation of U.S. officials eclipses pretty much every other discussion at Davos this year. But, when people here aren’t talking about Trump, they are talking about AI.

At Davos last year, the hype around AI agents was pierced by the shock of DeepSeek’s R1 model, which was released during the conference. We’ll see if a similar bit of news upends the AI narrative again this year. (There are rumors that DeepSeek is planning to drop another model.) But, barring that, business leaders seem to be less wowed by the hype around AI this year and more concerned with the nitty-gritty of how to implement the technology successfully at scale.

On Monday, Srini Tallapragada, Salesforce’s chief engineering and customer success officer, told me the company is using ‘forward deployed engineers’ to tighten feedback loops between customers and product teams. Salesforce is also offering pre-built agents, workflows, and playbooks to help customers re-engineer their businesses—and avoid getting stuck in “pilot purgatory.”

Meanwhile, at a side event in Davos called A Compass for Europe, that focused on how to restore the continent’s flagging competitiveness, AI was front-and-center. Christina Kosmowski, the CEO of LogicMonitor, told the assembled CEOs that to achieve AI success at scale, companies should take a “top down” approach, with the CEO and leadership identifying the highest value use cases and driving the whole organization to align around achieving them. Neeti Mehta Shukla, the cofounder and chief impact officer at Automation Anywhere, said it was critical to move beyond measuring automation’s impact only through the lens of labor savings. She gave specific customer examples where uplifting data quality, improving customer satisfaction, or moving more workers to new tasks, were better metrics than simply looking at cost per unit output. Finally, Lila Tretikov, head of AI strategy at NEA, said Europe has enough talent and funding to build world-beating AI companies—what it lacks is ambition and willingness to take big bets.

Later, I met with Bastian Nominacher, co-founder and co-CEO of process analytics software platform Celonis. He echoed some of these points, telling me that to achieve ROI with AI generally required three things: strong leadership commitment, the establishment of a center of excellence within the business (this led to an 8x higher return than for companies that didn’t do this!), and finally having enough live data connected to the AI platform.

For further AI insights from Davos, check out Fortune’s Eye on AI newsletter. Meanwhile, Fortune is hosting a number of events in Davos throughout the week. View that lineup here. And my colleagues will be providing more reporting from Davos to CEO Daily and fortune.com throughout the week.—Jeremy Kahn

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders. Sign up to get it delivered free to your inbox.



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Stock market today: Dow futures tumble 400 points on Trump’s tariffs over Greenland, Nobel prize

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U.S. stock futures dropped late Monday after global equities sold off as President Donald Trump launches a trade war against NATO allies over his Greenland ambitions.

Futures tied to the Dow Jones industrial average sank 401 points, or 0.81%. S&P 500 futures were down 0.91%, and Nasdaq futures sank 1.13%. 

Markets in the U.S. were closed in observance of the Martin Luther King Jr. Day holiday. Earlier, the dollar dropped as the safe haven status of U.S. assets was in doubt, while stocks in Europe and Asia largely retreated.

On Saturday, Trump said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland will be hit with a 10% tariff starting on Feb. 1 that will rise to 25% on June 1, until a “Deal is reached for the Complete and Total purchase of Greenland.”

The announcement came after those countries sent troops to Greenland last week, ostensibly for training purposes, at the request of Denmark. But late Sunday, a message from Trump to European officials emerged that linked his insistence on taking over Greenland to his failure to be award the Nobel Peace Prize.

The geopolitical impact of Trump’s new tariffs against Europe could jeopardize the trans-Atlantic alliance and threaten Ukraine’s defense against Russia.

But Wall Street analysts were more optimistic on the near-term risk to financial markets, seeing Trump’s move as a negotiating tactic meant to extract concessions.

Michael Brown, senior research strategist at Pepperstone, described the gambit as “escalate to de-escalate” and pointed out that the timing of his tariff announcement ahead of his appearance at the Davos World Economic Forum this week is likely not a coincidence.

“I’ll leave others to question the merits of that approach, and potential longer-run geopolitical fallout from it, but for markets such a scenario likely means some near-term choppiness as headline noise becomes deafening, before a relief rally in due course when another ‘TACO’ moment arrives,” he said in a note on Monday, referring to the “Trump always chickens out” trade.

Similarly, Jonas Goltermann, deputy chief markets economist at Capital Economics, also said “cooler heads will prevail” and downplayed the odds that markets are headed for a repeat of last year’s tariff chaos.

In a note Monday, he said investors have learned to be skeptical about all of Trump’s threats, adding that the U.S. economy remains healthy and markets retain key risk buffers.

“Given their deep economic and financial ties, both the US and Europe have the ability to impose significant pain on each other, but only at great cost to themselves,” Goltermann added. “As such, the more likely outcome, in our view, is that both sides recognize that a major escalation would be a lose-lose proposition, and that compromise eventually prevails. That would be in line with the pattern around most previous Trump-driven diplomatic dramas.”



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Goldman investment banking co-head Kim Posnett on the year ahead, from an IPO ‘mega-cycle’ to another big year for M&A to AI’s ‘horizontal disruption’

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Ahead of the World Economic Forum‘s Annual Meeting in Davos, Switzerland, Fortune connected with Goldman Sachs’ global co-head of investment banking, Kim Posnett, for her outlook on the most urgent issues in business as 2026 gathers steam.

A Fortune Most Powerful Woman, Posnett is one of the bank’s top dealmakers, also serving as vice chair of the Firmwide Client Franchise Committee and is a member of the Management Committee. She was previously the global head of the Technology, Media and Telecommunications, among several other executive roles, including Head of Investment Banking Services and OneGS. She talked to Fortune about how she sees the current business environment and the most significant developments in 2026, in terms of AI, the IPO market and M&A activity. Goldman has been the No. 1 M&A advisory globally for the last 20 years, including in 2025 — and Posnett has been one of the star contributors, advising companies including Amazon, Uber, eBay, Etsy, and X.

  • Heading into Davos, how would you describe the current environment?  

As the global business community converges at Davos, we are seeing powerful catalysts driving M&A and capital markets activity. The foundational drivers that accelerated business activity in the second half of 2025 have continued to improve and remain strong heading into 2026. A constructive macro backdrop — including AI serving as a growth catalyst across sectors and geographies — is fueling CEO and board confidence, and our clients are looking to drive strategic and financing activity focused on scale, growth and innovation. As AI moves from theoretical catalyst to an industrial driver, it is creating a new set of priorities for the boardroom that are top of mind for every client we serve heading into 2026.

  • What were the most significant AI developments in 2025, and what should we expect in 2026?

2025 was a breakout year for AI where we exited the era of AI experimentation and entered the era of AI industrialization. We witnessed major technical and structural breakthroughs across models, agents, infrastructure and governance. It was only a year ago, in January 2025, when DeepSeek launched its DeepSeek-R1 reasoning model challenging the “moats” of closed-source models by proving that world-class reasoning could be achieved with fully open-source models and radical cost efficiency. That same month, Stargate – a historic $500 billion public-private joint venture including OpenAI, SoftBank and Oracle – signaled the start of the “gigawatt era” of AI infrastructure. Just two months later in March 2025, xAI’s acquisition of X signaled a new strategy where social platforms could function as massive real-time data engines for model training. By year end, we saw massive, near-simultaneous escalation in model capabilities with the launches of OpenAI’s GPT-5.1 Pro, Google’s Gemini 3, and Anthropic’s Claude 4.5, all improving deep thinking and reasoning, pushing the boundaries of multimodality, and setting the standard for autonomous agentic workflows. 

In the enterprise, the conversation has matured from “What is AI?” just a few years ago to “How fast can we deploy?” We have moved past the pilot phase into a period of deep structural transformation. For companies around the world, AI is fundamentally reshaping how work gets done. AI is no longer just a feature; it is the foundation of a new kind of productivity and operating leverage. Forward-leaning companies are no longer just using AI for automation; they are building agentic workflows that act as a force multiplier for their most valuable asset: human capital. We are starting to see the first real, measurable returns on investment as firms move from ‘AI-assisted’ tasks to ‘AI-led’ processes, fundamentally shifting the cost and speed of execution across organizations. 

Of course, all this progress is not without regulatory and policy complexities. As AI reaches consumer, enterprise and sovereign scale, we are seeing a divergence in global policy that boards must navigate with care. In the United States, recent Executive Orders — such as the January 2025 ‘Removing Barriers’ order and the subsequent ‘Genesis Mission’ — have signaled a decisive shift toward prioritizing American AI dominance by rolling back prior reporting requirements and accelerating infrastructure buildouts. Contrast this with the European Union, where the EU AI Act is now in full effect, imposing strict guardrails on ‘high-risk’ systems and general-purpose models. Meanwhile, the UK has adopted a “pro-innovation” hybrid model: on the one hand, promoting “safety as a service”, while also investing billions into national compute and ‘AI Growth Zones’ to bridge the gap between innovation and public trust. For our clients, the challenge is no longer just regulatory compliance; it is strategic planning and arbitrage – deciding where to build, where to deploy, who to partner with, what to buy and how to maintain a global edge across a fragmented regulatory landscape.

As we enter 2026, the pace of innovation isn’t just accelerating; it is forcing a total rethink of business processes and capital allocation for every global enterprise. 

  • Given the expectation and anticipation for IPOs this year, what is your outlook for the market and how will it be characterized?

We are entering an IPO “mega-cycle” that we expect will be defined by unprecedented deal volume and IPO sizes. Unlike the dot-com wave of the late 1990s, which saw hundreds of small-cap listings, or even the 2020-2021 surge driven by a significant number of billion-dollar IPOs, this next IPO cycle will have greater volume and the largest deals the market has ever seen. It will be characterized by the public debut of institutionally mature titans, as well as totally disruptive, fast moving and capital consumptive innovators. Over the last decade, some companies have stayed private longer and raised unprecedented amounts of private capital, allowing a cohort of businesses to reach valuations and operational scale previously unseen in the private markets. We are no longer talking about “unicorns” — we are talking about global companies with the gravity and scale of Fortune 500 incumbents at the time they go public.  For investors, the reopening of the IPO window will enable an opportunity to invest in the most transformative and fastest growing companies in the world and a generational re-weighting of the public indices. 

In 2018, the five largest public tech companies were collectively valued at $3.3 trillion, led by Apple at ~$1 trillion. Today, the five largest public tech companies are valued at $18.3 trillion, more than five and half times larger.  Even more significant, the 10 largest private tech companies in 2018 were valued at $300 billion. Today, the 10 largest private tech companies are valued at $3 trillion, more than 10 times larger. These are iconic, generational companies with unprecedented private market caps some of which have unprecedented capital needs which should lead to an unprecedented IPO market. 

Each of these companies will have their own objectives on IPO timing, size and structure which will influence if, how and when they come to the market, but the potential across the board is significant. During the last IPO wave, Goldman Sachs was at the center of IPO innovation by leading the first direct listings and auction IPOs, and we expect more innovation with this upcoming wave. The current confluence of a constructive macro backdrop and groundbreaking technological advancements is doing more than just reopening the window; it is creating a generational opportunity for investors to participate in the companies that will define the next century of global business.

  • M&A activity exploded in 2025, are the markers there for another boom year?

As we enter 2026, the global M&A market has transitioned from a year of recovery ($5.1 trillion of M&A volume in 2025, up 44% YoY) to one that is bold and strategic. While the second half of 2025 was defined by a “thawing” — driven by a constructive regulatory environment, fed easing cycle and normalizing valuations — the year ahead will be defined by ambition. 

We have entered an era of broad, bold and ambitious strategic dealmaking: transformative, high-conviction transactions where industry leaders are no longer just consolidating for scale, but also moving aggressively to acquire the strategic assets, AI capabilities and digital infrastructure that will define the next decade. CEO and board confidence have reached a multi-year high, underpinned by the realization that in an AI-industrialized economy, standing still is the greatest risk of all. The quality and pace of strategic discussions that we are having with our clients signals that the world’s most influential companies — across sectors and regions — are ready to deploy their balance sheets and public currencies to redraw the competitive map. 

AI is no longer an isolated tech trend; it is a horizontal disrupter, broadening the appetite for strategic M&A across every sector of the economy. While the dialogue in boardrooms has moved from theoretical ‘AI pilots’ to large-scale capital deployment, the speed of technology is currently outpacing traditional governance frameworks. Boards and management teams are being asked to make multi-billion dollar, high-stakes decisions in a landscape where historical benchmarks often no longer apply. In this environment, M&A has become a tool for strategic leapfrogging — allowing companies to move both defensively to protect their core and offensively to secure the critical infrastructure and talent needed for non-linear growth. Success in 2026 will be defined by strategic conviction: the ability to turn this unprecedented complexity into a clear, actionable strategy and competitive advantage.

As AI continues to reshape corporate M&A strategy, we are also seeing financial sponsors return to the center of the M&A stage. Sponsor M&A activity accelerated sharply in 2025 — with M&A volumes surging over 50% as the bid-ask spread between buyers and sellers started to narrow, financing markets became more constructive and innovative deal structures enabled private equity firms to pursue larger, more complex transactions. With $1 trillion of global sponsor dry powder and over $4 trillion of unmonetized sponsor portfolio companies, the pressure for capital return to LPs has continued to escalate. Financial sponsors are entering 2026 with a dual-focus: executing take-privates and strategic carveouts to deploy fresh capital, while simultaneously utilizing reopened monetization paths – from IPOs to secondary sales to strategic sales — to satisfy demand for liquidity. With monetization paths reopening and valuation gaps narrowing, sponsors are entering 2026 with greater flexibility, reinforced by a healthier macroeconomic backdrop and improving liquidity conditions. 

This Q&A is based on an email conversation with Kim Posnett. This piece has been edited for length and clarity.



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