Goldman Sachs Splits Tech Unit for the Era of “Steel and Silicone”
Goldman Sachs has officially restructured its high-profile Technology, Media, and Telecom (TMT) investment banking group.
The internal reorganization, confirmed in mid-December 2025, reflects a fundamental shift in the global tech landscape, where the boundaries between traditional telecommunications, hardware, and internet services have blurred under the pressure of AI expansion.
Creation of Two Powerhouse Sectors at Goldman Sachs
The overhaul involves splitting the existing TMT framework into two newly defined global sectors.
This move is designed to offer more specialized advisory services as clients transition from software experimentation to heavy-duty infrastructure construction.
- Global Infrastructure Technology: This new unit merges the bank’s former telecom and “CoreTech” teams. It focuses on the “physical layer” of the digital economy, including data centers, fiber networks, and power systems. The group will be co-headed by partners Yasmine Coupal and Jason Tofsky.
- Global Internet and Media: This sector will cater to the “platform layer,” focusing on digital media, e-commerce, and software-as-a-service (SaaS). It will be co-headed by Brandon Watkins and Alekhya Uppalapati.
Additionally, Goldman has bolstered its software leadership by appointing Brian Cayne, a co-founder of Qatalyst Partners, as global co-head of software investment banking, starting in January 2026.
The Strategic Logic: Following the Capital
The primary driver behind this reshuffle is the unprecedented demand for AI-related infrastructure.
Goldman Sachs Research estimates that energy-hungry AI facilities will drive a 160% increase in data center power demand by 2030.
To meet this surge, an estimated $5 trillion in funding will be required for digital infrastructure and power generation.
By aligning its telecom experts with core technology bankers, Goldman is positioning itself to lead complex deals involving semiconductors and massive data center builds.
Kyle Jessen, recently named partner, will head Infrastructure Technology M&A while continuing to lead semiconductor coverage—a critical role given the global race for high-end AI chips.
Goldman Sachs Adapting to the “Era of Computing Power”
TMT global co-heads Jung Min and Barry O’Brien announced the reorganization in a memo to employees.
They stated that the change aims “to enhance our coverage model to serve our clients’ ambitions and objectives.”
He added, “The bank recognizes that modern tech deals are no longer just about software code; they are increasingly about “concrete, steel, and silicone.”
The bank’s recent track record underscores this momentum, having advised on $337.8 billion worth of transactions in 2025, maintaining a dominant 42.5% market share.
Notable deals include Alphabet’s $32 billion acquisition of Wiz and a massive $56.5 billion leveraged buyout of Electronic Arts.
A Blueprint for Wall Street
Industry analysts view Goldman’s move as a proactive response to the evolving nature of technology assets.
Traditional tech banking focused primarily on “asset-light” startups.
In contrast, the current AI boom is “asset-heavy,” requiring specialized knowledge of real estate, energy regulations, and hardware supply chains.
The “AI M&A Supercycle” has officially begun.
Consequently, this structural change ensures that Goldman Sachs remains at the center of the world’s most complex and high-value financial transactions.
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