Larry Fink Dismisses AI Bubble Concerns, Says China Winning Is The 'Greatest Risk' If Investments Don't Continue: Report

BlackRock Inc. (BLK) CEO Larry Fink on Wednesday reportedly dismissed concerns of an AI bubble, while issuing a warning about what could happen due to the lack of investments in the sector.

In a chat with Reliance Industries Chairman and MD Mukesh Ambani, organized by Moneycontrol, Fink stated that it is necessary to rapidly expand AI opportunities.

“I don’t believe there is an AI bubble. I believe the greatest risk we have is, if we don’t invest and continue to invest, China will win,” Fink said.

BlackRock shares were up 0.5% in Wednesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory at the time of writing.

Fink Does Not Rule Out Bankruptcies Due To AI Impact

Fink also noted that while investments are necessary and he does not believe there is an AI bubble, this does not mean there won’t be any bankruptcies in the industry. “That’s not failure, that’s capitalism. You have big successes and big failures,” Fink said.

He added that the opportunities for companies to utilize AI will be present in everything they do. The BlackRock CEO cited Anthropic’s latest tool, announced on Tuesday, stating that while it could be threatening to some businesses, it presents an opportunity for others.

AI Is Topical Because It Is Disruptive

Fink also noted that AI is part of many conversations today, calling it topical because it is disruptive.

“The future of AI in terms of drug discovery, in terms of humanity, is real,” he said. The BlackRock CEO also pondered the possibility of using AI to develop new sources of power and whether it could lead to abundance in the Global South.

Fink stated that the key for AI to be really successful is to ensure that the technology broadens economic prosperity, not narrows it.

“That’s going to be the real issue. Can AI be not only disruptive, but can it be expanding and broaden economic success throughout all economies?” he added.

BLK stock is flat year-to-date, but up 6% over the past 12 months.

Also See: ENPH Stock Is Soaring Pre-Market Today — Why Did Enphase Shares Get An Upgrade?

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Editor's Note: The story has been updated to reflect the accurate designation of Reliance Industries Chairman and Managing Director Mukesh Ambani.

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