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Goldman Sachs maps out where it’s pushing AI — and the risks that could upend its strategy

Goldman Sachs is pushing deeper into artificial intelligence — and what it could mean for the firm’s future.

In its 2025 shareholder letter, released Friday, Goldman’s leaders doubled down on their priorities tied to the recent refresh of their “One Goldman Sachs” initiative to streamline the bank’s services and boost revenue.

The firm described One GS as a “new operating model propelled by AI,” and highlighted six areas “ripe for disruption”: client onboarding and KYC, vendor management, regulatory reporting, lending, enterprise risk management, and sales enablement.

“This doesn’t just mean retooling our platforms,” the bank said. “It means taking a front-to-back view of how we organize our people, make decisions, and think about productivity, efficiency, and resilience.”

Goldman signaled that executing on its AI ambitions will depend heavily on talent, where a battle continues to unfold to nab top performers across Wall Street.

“Competition from within the financial services industry and from businesses outside the financial services industry, including the technology industry, for qualified employees has often been intense,” the firm said. It added that it has “experienced increased competition in hiring and retaining employees” tied to its technology initiatives and newer business lines.

That pressure is particularly acute in newer hubs central to Goldman’s operating model. The bank said 45% of its workforce is now based in strategic locations like Warsaw, Bengaluru, Hyderabad, and Salt Lake City. In those markets, Goldman often competes with firms that have a deeper local presence.

At the same time, the firm continues to draw significant interest from candidates. Goldman said it received more than one million experienced hire applications in 2025, up 33% from the prior year.

The biggest risks

In addition to shedding some light on its future AI bets, Goldman also explained what it sees as the biggest risks tied to its use of the technology that it believes shareholders ought to know.

The firm said “the legal and regulatory environment relating to AI is uncertain and rapidly evolving,” and warned that AI models may generate incorrect outputs.

Generative AI models, the firm flagged, are prone to making mistakes, which could, in a worst-case scenario, “result in the release of private, confidential or proprietary information, that reflect biases included in the data” they’re trained on. And it pointed to its use of “AI models developed by third parties” which the firm said makes it “dependent” on how those providers build their models. What’s more, bad actors could harness AI’s capabilities “to commit fraud and misappropriate funds and to facilitate cyber attacks,” it said.

Still, CEO David Solomon struck a bullish tone in the letter about his prognosis for AI. “We believe this technology is going to reshape the way we live and work,” he wrote, adding that “at the same time, there are significant questions” about the mind-bending speed of its adoption.

“With any new technology, there will be winners and losers,” the CEO added. “While there are likely to be periods of recalibration, in the long run I believe the net benefits from AI will accrue to many institutions as AI investment continues to build.”

AI has been a central focus for Solomon. The bank has partnered with developers like Cognition Labs to create unique products and rolled out its GS AI chatbot to its more than 47,000 employees.

Speaking at a conference in Europe last year, he said he wished Goldman could spend more than its roughly $6 billion technology budget, but noted at the time that investment levels were somewhat constrained by the need to deliver shareholder returns.




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New Pentagon maps show the reach of China’s expanding missile force

China’s missile arsenal is expanding rapidly, and new maps and data from the Pentagon show its size and reach.

China’s missile branch, known as the People’s Liberation Army Rocket Force, has seen substantial growth in recent years as Beijing builds new platforms for conventional and nuclear strike. Its capabilities threaten US, allied, and partner forces.

The latest Pentagon report on China’s military offers estimates for the number of launchers and missiles in the Chinese arsenal, including the country’s intercontinental ballistic missiles, key parts of its nuclear deterrent.

Chinese ICBMs include missiles like the DF-5 and DF-41. The Pentagon estimates China has 550 ICBM launchers and 400 missiles with estimated ranges beyond 5,500 km, the threshold for classification as an ICBM.


A chart showing the estimated ranges, missile numbers, and launcher numbers based on each system and class of China's missiles.

Estimated numbers of missiles and launchers for Chinese missiles, specifically ground-launched cruise missiles (GLCMs), short-range ballistic missiles (SRBMs), medium-range ballistic missiles (MRBMs), intermediate-range ballistic missiles (IRBMs), and ICBMs.

US Department of Defense



For China’s medium-range ballistic missiles, such as China’s DF-21s or hypersonic DF-17, the Pentagon assesses that China has 300 launchers for 1,300 missiles with ranges between 1,000 and 3,000 km. The report also documented increases in the number of launchers and missiles for some notable systems. China’s intermediate-range ballistic missiles, like the DF-26 missile, jumped from 250 launchers in last year’s report to 300 this year, and the number of IRBMs total went from 500 to 550.

These figures illustrate how heavily Beijing has invested in a powerful, diverse missile arsenal. The Pentagon highlighted in its report that the Rocket Force could play an important role in a Chinese invasion of Taiwan or other regional conflict.

According to the latest report, China’s rocket force “is prepared to conduct missile attacks against high-value targets, including Taiwan’s C2 [command and control] facilities, air bases, and radar sites” as well as deter or delay the US or its allies and partners from coming to Taiwan’s aid.

The Pentagon said that the Rocket Force has continued to rehearse strikes in recent military exercises, including 2024 drills simulating an invasion or blockade of Taiwan.


A map showing missile ranges in the Taiwan Strait.

The estimated ranges of Chinese missiles relevant to a Taiwan fight.

US Department of Defense



One map in the report shows the estimated reach of Chinese missiles that could be particularly relevant in a fight over Taiwan, weapons such as ship- and shore-launched surface-to-air missiles for knocking out hostile aircraft, as well as anti-ship cruise missiles fired from naval platforms like Chinese destroyers and land-based close- and short-range ballistic missiles.

Another Pentagon map shows the estimated reach of China’s conventional strike missiles, including the DF-17 and DF-21 MRBMs, the DF-26 IRBM, and the newly fielded DF-27 ICBM, which, like the DF-26 and some DF-21s, has an anti-ship role in addition to land attack.

Many of these systems can reach across the first island chain, which includes Japan, Taiwan, and the Philippines, while longer-range missiles extend toward the second island chain and beyond.

The DF-26 is concerning for US planners. The weapon, nicknamed the “Guam Express,” can be armed with either conventional or nuclear warheads and reach US installations on Guam. It can target US aircraft carriers and other surface ships as well.

Bombers, like China’s H-6, carrying CJ-20 cruise missiles could threaten parts of Alaska. And then the ICBMs can range significantly further. The DF-27 can, for instance, range parts of the continental United States.


A map showing estimated ranges of Chinese missiles outside of the mainland and towards other regions.

The estimated ranges of Chinese missiles with regional reach.

US Department of Defense



The Department of Defense report also looks at China’s nuclear strike options, such as land-based ICBMs and submarine-launched ballistic missiles.

China test-launched an ICBM, specifically a DF-31B missile, in September 2024, firing it from a position on Hainan Island into the Pacific. The test was the first beyond the country’s borders since the 1980s and allowed China to verify ICBM performance. The Department of Defense suspects weapons tests like these may become more regular.

This year, at a military parade in Beijing, China unveiled new, previously unseen ICBMs, shocking China watchers. Those weapons, including the new DF-61 and DF-31BJ, are not included in the Pentagon’s assessments.

China also continues to bolster its nuclear warhead count, estimated at over 600 warheads. Although 2024 saw a slower rate of production than previous years, the Pentagon still assesses that the Chinese military is on its way to 1,000 warheads by 2030, only a fraction of the US and Russian stockpiles.


A map showing the estimated ranges of China's missiles from Asia over the North Pole.

The estimated ranges of Chinese nuclear missiles.

US Department of Defense



A Pentagon map estimating the ranges of Chinese missiles available for nuclear strike indicates that three — the DF-5, DF-41, and DF-31 — all have the continental US well within range, while the submarine-launched JL-3 missile can hit most of it from waters near China. On a submarine positioned farther out, more targets could be within striking distance.

Despite these continued advancements, questions remain on the differences in quality and capabilities of Chinese weapons and training compared to the US. The Pentagon also believes China is still navigating the impacts of a vast anti-corruption campaign in the military that has particularly targeted PLARF officials.

The campaign could be detrimental if driven by political agendas, or it could deliver long-term improvements if it addresses actual problems within the force. At this point, it’s unclear how the changes will affect it.




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