Citigroup Inc. has formed a dedicated artificial intelligence infrastructure banking team and made its first strategic investment in Japan in Tokyo-based Sakana AI, moves announced on 25 February aimed at capturing a greater share of the capital-intensive global AI build-out.

According to a memo reviewed by Bloomberg News, the new AI Infrastructure Banking team brings together senior leaders from Citi’s investment banking and corporate banking divisions to focus on advisory and lending opportunities linked to data centres, computing capacity and related digital assets. A Citi spokeswoman confirmed the contents of the memo.

The team includes Ric Spencer, vice chair of technology, Ashish Agrawal, co-head of real estate, Alex Watkins, who runs technology financing, Doug Baird, head of technology corporate banking, and digital infrastructure M&A banker Ben Mortimer. All will retain their existing titles while coordinating efforts across sectors including technology, communications, energy, real estate and crypto.

In the memo to staff, the leaders of Citi’s investment banking, financing and corporate banking groups wrote that the bankers would work to “break silos and evaluate all pockets of capital available” for AI infrastructure projects. They added: “During this build out period, debt financing will need a combination of bank debt, private credit, infrastructure and real estate financing and structured IG debt.”

Citi estimates that $3 trillion of capital will be required by 2030 to fund the expansion of data centres, computing power and other AI infrastructure as adoption of the technology accelerates. The bank is seeking to position itself as an adviser and lender to the investors and companies driving that spending.

In Tokyo, Citi said its Markets Strategic Investments unit had taken a stake in Sakana AI, marking its first investment in Japan. The unit backs fintech and enterprise technology companies aligned with Citi’s markets division.

Robert Nakamura, Citi country officer and banking head for Japan, said: “We are proud to support their journey and look forward to providing value-add opportunities as they expand their financial services product offering.” David Ha, chief executive of Sakana AI, said the deal recognised the company’s “technological capabilities and our track record in the financial sector”.

---