Overview of A Goldman M&A Banker Helped Bring the Olympics to Los Angeles
This live Odd Lots episode from Bloomberg features Gene Sykes, Goldman Sachs’ global co-head of M&A, chair of the U.S. Olympic and Paralympic Committee, and an IOC member. The conversation centers on two big themes: the 2028 Los Angeles Olympics and the current surge in M&A driven by AI. Sykes makes the case that LA is unusually well positioned to host a low-build, largely privately funded Olympic Games, and he argues that AI is already reshaping dealmaking, media, and corporate strategy in real ways—not just as a buzzword.
The 2028 Los Angeles Olympics: What Makes It Different
Why LA is unusually well positioned
Sykes argues that Los Angeles is one of the best possible hosts for the Olympics because it already has:
- Extensive sports infrastructure
- Existing stadiums and arenas
- Strong transportation planning experience
- UCLA housing that can serve as the athlete village
Because of that, he says LA will not need to build much new permanent infrastructure, making the games far easier to execute than many prior Olympics.
What a successful Olympics looks like
For Sykes, success is not just about cost control. A successful Games should feel unforgettable—something spectators can only experience in that place, at that moment, with the best athletes in the world gathered together.
He also notes that the Olympics tend to attract a broader and more female audience than many people assume.
Private funding and security
He emphasizes that the 2028 Games are effectively privately funded, with the federal government playing a security role. He says the financing model depends heavily on:
- Ticket sales
- Media rights
- Corporate sponsorships
The security burden is significant because the Olympics will bring together delegations from 206 countries.
Ticketing, traffic, and the fan experience
On concerns about LA traffic and long lines, Sykes says:
- Traffic can be managed if people know in advance where and when events are happening
- The city can use dedicated “Olympic lanes”
- Ticketing should be simpler than people fear, with one app and advance sales
He argues the 1984 LA Olympics proved the city can handle a major event smoothly when it is well planned.
The M&A Market Is Booming, Powered by AI
The biggest M&A year ever
Sykes says the current M&A market is exceptionally strong—potentially the biggest in history. Compared with the 2021 peak, he expects the market to be even larger, with especially strong activity coming from sectors tied to AI and technology infrastructure.
What is driving deal activity
He points to several forces:
- Demand from companies wanting AI capabilities
- Infrastructure buildouts for AI
- Semiconductor consolidation
- Ongoing private-equity exits
- Cross-sector pressure to modernize business models
He says AI’s impact is showing up not only in tech, but in power generation, natural resources, and other industries building the backbone for AI.
Can companies buy AI capability?
Sykes is skeptical that large incumbents can simply “buy” AI fluency. His view is more nuanced:
- Many startups are built to be acquired
- Most startups’ eventual endgame is selling to a bigger platform
- Truly durable companies need real differentiation
- Some AI leaders, like OpenAI and Anthropic, may become too large to buy
He compares the current wave to earlier technology cycles, but notes that the capital backing AI now comes from giant tech platforms with enormous cash flows, not just venture capital.
AI Adoption: Early, But Real
Enterprise adoption is still limited
When asked about corporate AI adoption, Sykes says the real, measurable adoption is still relatively small:
- About 2% of companies are already seeing a positive EPS impact from AI
- Roughly 20%–30% have implemented meaningful AI strategies
Still, he says firms like Goldman Sachs are already using AI in many workflow areas, especially among younger employees who are naturally integrating it into their work.
How AI changes M&A work
He argues that AI will not replace relationship-driven dealmaking, but it will improve it by helping people:
- Synthesize more variables
- Reach conclusions faster
- Ask better follow-up questions
- Make more informed judgments
In his view, AI makes professionals more effective rather than simply “smarter.”
AI and Media: Threat, Tool, or Both?
Two competing views
Sykes says AI could transform media in two opposite ways:
- Commoditization — Anyone can create content, lowering the value of traditional media production.
- Amplification — Strong IP, brands, and catalog content become more valuable because AI can extend and repurpose them.
He sees both dynamics at work, depending on the company’s confidence in its own IP.
Catalogs and back libraries may become more valuable
He believes existing content libraries may gain value because AI can:
- Find more uses for old content
- Repackage familiar IP in new formats
- Match audiences with content more effectively
He suggests AI may help content become more targeted and more appealing rather than merely more abundant.
Concerns in music and creator industries
Sykes notes that music labels and other rights holders are understandably anxious about AI-generated content and misuse of copyrighted material. At the same time, creators may use AI to make their work more ambitious, more personalized, and easier to produce.
Big Picture Takeaways
- LA 2028 is being positioned as a low-build, privately funded Olympics with strong existing infrastructure.
- The Olympic experience is expected to be more manageable than skeptics think, especially if planning and ticketing go smoothly.
- AI is already reshaping M&A, even if broad enterprise adoption is still early.
- The most likely AI winners may be either highly differentiated startups or large platforms with enough scale to absorb the technology.
- In media, AI is both a disruption and a multiplier—threatening some business models while enhancing the value of strong IP and content libraries.
Notable Insights
On the Olympics
- A successful Games should feel like an experience people “will never forget.”
- LA’s existing venues and housing make it unusually suited to host.
- Olympic commercialization is tightly controlled; the field of play remains clean of advertising.
On M&A
- Deal appetite is strong because companies feel pressure not to miss the moment.
- The current environment is unusually favorable for transactions.
- In practice, “M&A” often means acquisition more than a true merger.
On AI
- AI’s impact is already visible in company workflows, but full adoption is still limited.
- The most important effect may be better decision-making, not just automation.
- AI is likely to make some existing media assets more valuable, not less.
Closing Thought
The episode is really about scale: the scale of the Olympics, the scale of today’s M&A market, and the scale of AI’s possible impact. Sykes’ core message is optimistic—Los Angeles can host a world-class Games, and AI is already becoming a practical force in business, media, and investing.