World Bank’s Banga says capital remains available despite AI financing concerns

AI’s promise of future profits is drawing investor doubts, but World Bank President Ajay Banga says capital is still available. In an October 27, 2026 CNBC interview, he called its availability “not really an issue” despite concerns about AI-driven borrowing costs, drawing a distinction between large AI investments and emerging-market infrastructure.

Different projects, different investor doubts

Speaking on CNBC’s Squawk Box, Banga acknowledged that investors may worry about circular financing and the business models behind AI. His reassurance concerned whether capital was available; it was not a dismissal of the questions investors have about how AI businesses are financed or how they will make money.

Emerging markets are not encountering the same hesitation, he said, because investment there focuses more on infrastructure such as bridges and roads. Those countries are also looking at smaller-scale uses of AI. He contrasted that demand with developed economies seeking funding for large AI applications, describing their needs as the “exact opposite.”

That distinction is central to his assessment: investor unease about AI financing does not describe every investment opportunity. Banga pointed to a different mix of projects in emerging markets, rather than claiming that their financing needs mirror those of the largest AI developments.

What the $112 billion measures

Banga cited $112 billion mobilized by the bank in the interview. The World Bank Group’s September 17 announcement places that figure in fiscal year 2026 and compares it with $35 billion in fiscal year 2022. It described FY2026 as its highest-ever year for private capital mobilization.

The figure measures private capital brought into developing economies alongside the institution’s financing and expertise—not money raised specifically for AI. Combined with the Group’s own financing, total financing and mobilization exceeded $200 billion in FY2026. That makes it evidence of the bank’s ability to attract investment, rather than a measure of appetite for AI projects alone.

The bank attributes the increase to changes in how it works with private investors. These include bringing its public- and private-sector work closer together, simplifying access and expanding investment tools. Its agenda includes guarantees, local-currency financing, equity tools and efforts to address foreign-exchange challenges, alongside improvements to business and regulatory conditions.

The growth also varies by destination. Private capital mobilized for lower-middle-income countries rose from $14 billion in FY2022 to $37 billion in FY2026. For low-income countries, it remained at about $3 billion. The record total therefore sits alongside a much more limited result in some of the most challenging investment settings.

Private investment is not government borrowing

Banga drew another boundary around his reassurance: the private capital the bank oversees does not go to governments. He said that allows the institution to avoid concerns tied to looming government debt crises and rising bond yields in some countries. His comments distinguished that private investment from the pressures facing sovereign borrowers.

He remained optimistic about AI itself, saying he believed it would be “transformative and profitable.” But that confidence came with uncertainty about the path ahead: “Everybody sees bumps in the road from here to there, and no one knows when the next bump will come.”