BlackRock CEO Larry Fink, countering a view voiced by many tech and financial industry leaders, doesn't see an artificial intelligence bubble. But he acknowledges that some companies will land on the losing side.
“I sincerely believe there is no bubble in the AI space. That being said, like in everything else in capitalism, there’s going to be some big failures," Fink told Bloomberg TV at the World Economic Forum in Davos, Switzerland, where he is WEF interim co-chair.
"We always see a rotation and there’s going to be some huge winners and some losers. But do I believe the needed capital to build out AI is one of the great opportunities for the world to come," Fink told Bloomberg in a video posted Thursday.
"When you think about the hundreds of billions of dollars in infrastructure that’s necessary — countries are going to have to rebuild their grids, we’re going to have to source new powers of energy," he added.
“There is a strong foundational belief that AI is going to accelerate new sources of power. And if we can have cheap sources of power, abundant cheap sources of power, maybe things that we can’t even think of today, through AI, imagine how that could lift the rest of the world," the CEO said.
In a talk at the forum, Fink also cautioned that Western economies must collaborate and invest in AI to compete with China, and that the momentum could fizzle if AI's technology and financial rewards stay concentrated in the few top major players, Business Insider reported.
While the outlook isn't universal, many tech and financial leaders, including investment strategist Jeremy Grantham, the Grantham Mayo Van Otterloo & Co. co-founder, have called the AI investing environment a bubble.
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