Debunking the AI bubble! BlackRock CEO: A shortage of compute power will give rise to a “compute futures market”

Global demand for artificial intelligence (AI) and computing power is showing explosive growth. BlackRock CEO Larry Fink said bluntly that massive demand will make “computing power” a brand-new asset class in the futures market. To meet this trend, the world’s largest asset managers are pouring in tens of billions of dollars, fully investing in data centers and energy infrastructure.

AI bubble bursting? BlackRock CEO refutes: Computing power is severely short, and will become a new futures asset

Speaking at a panel discussion at the Milken Institute Global Conference, BlackRock CEO Fink said that there is currently no such thing as an “AI bubble” in the market; instead, it is facing severe supply shortages.

He noted that the pace of market demand growth is far beyond what anyone expected. Not only does the United States fall short in capacity for computing power, chips, and memory, but globally, the market is only just beginning to explore the massive business opportunity presented by AI. Fink expects that because demand is so strong, in the future the market will develop trading mechanisms for buying and selling “computing-power futures,” allowing computing power to officially become a new asset class.

Partnering with Microsoft and Nvidia: BlackRock splashes heavy funds to build data centers and secure energy supply

According to a report by Bloomberg, BlackRock, the world’s largest asset management company, is forming alliances with companies including Microsoft, Nvidia, and the investment firm MGX—an investment institution of the United Arab Emirates—to inject tens of billions of dollars into the data center and energy sectors. Currently, BlackRock’s Global Infrastructure Partners (GIP) has announced that it will spend about $40B to acquire Aligned Data Centers. At the same time, GIP has also teamed up with private equity firm EQT to buy power supplier AES Corp. for $10.7 billion in cash.

Fink emphasized that these investments targeting ultra-large data center operators such as Google and Amazon will generate substantial returns, making them well suited for long-term allocations by pension funds, sovereign wealth funds, and insurance companies, while private credit will also play a key role in supporting this wave of U.S. infrastructure buildout.

AI infrastructure is a long-term, steady compounding investment opportunity?

Brookfield Corp. CEO Bruce Flatt also echoed the view at the event that AI will bring about a historic economic transformation. He likened today’s AI development to major infrastructure projects from the past, such as laying highways and railroads, stressing that the global economy is currently being reshaped and will comprehensively build out foundational networks including cloud computing, artificial intelligence, next-generation factories, and data centers.

All the asset management executives in attendance agreed that investments in AI-related infrastructure will continue for decades. As long as investors are willing to hold long term, they can obtain steady and substantial long-term compounding returns.

This article, Refuting an AI Bubble! BlackRock CEO: A shortage of computing power will give rise to a “computing-power futures market,” first appeared on Chain News ABMedia.