BlackRock CEO Larry Fink recently pushed back against the idea that the artificial intelligence boom is destined to explode like previous manias.
“I think there will be big failures, but I don’t think we’re in a bubble,” Fink said Wednesday during a panel discussion at the World Economic Forum in Davos, Switzerland.
Mr. Fink placed the wave of AI investment within the broader global competitive environment, particularly among major economies.
“I think for Western economies, if we don’t cooperate, if we don’t scale up, China will win,” he said. Fink said China’s differences in population size and privacy regime could provide significant data advantages.
This dynamic, Fink argued, makes cooperation between the United States and its allies essential. “Rather, I’d say we need to spend more money to compete properly with China,” he said.
Still, Fink warned that the AI boom could end in disappointment if its benefits remain concentrated among a few powerful companies.
“The key is to make sure that the demand only comes as the technology becomes more widespread for more applications, more uses,” he said.
He added: “If the technology is just the domain of the six hyperscalers, we’re going to fail.”
Mr. Fink’s comment: broader discussion On whether huge investments in AI are causing the stock market to enter a bubble.
Some leaders, including OpenAI CEO Sam Altman, acknowledge the technology’s transformative potential but warn against getting too excited about AI.
On the other hand, the co-founder of Microsoft bill gates said in late October that AI is in a bubble.
