The largest asset manager in the world, BlackRock, announced that its CEO is in talks with multiple nations over how to finance important investments that would enable artificial intelligence (AI), like increasing the energy supply.
The CEO of BlackRock (BLK.N), the biggest asset manager in the world, said on Friday that the company is in discussions with several countries on how to pay for crucial investments that would enable artificial intelligence (AI), such as boosting the energy supply.
Although AI is thought to significantly increase productivity worldwide, it requires massively power-hungry semiconductor factories and data centers.
Speaking virtually, BlackRock CEO Larry Fink addressed the B7 business groupings of the Group of Seven (G7) states during their conference in Rome. The summit came ahead of the G7’s more developed economies’ finance ministers and central bankers’ gathering in Italy the following week.
“We never could have predicted the amount of power that these AI data centers will use. Fink remarked, “The G7 does not have enough power.”
“I think this is going to create a real competitive challenge for countries.”
According to BlackRock, data centers are likely to be constructed in areas with less expensive power supplies, necessitating the need for government subsidies in places where energy costs are not competitive.
Fink stated that private investors would need to contribute to the “trillions of dollars” in investments needed to develop the data centers and chip factories that will power AI technology. These investments might be very profitable for insurers and pension funds.
Japan said on Tuesday that it expects the need for power to increase by 35% to 50% by 2050 as a result of the increased demand from data centers and semiconductor facilities supporting artificial intelligence.
Fink added, “We’re in conversations with many governments right now about how we can bring private capital,” but the fear of a “fiscal crisis” prevented the G7 states from bearing the expense.
“The deficits we’re seeing in the G7 are becoming a burden for my children, your children, and our grandchildren.”
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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