Davos 2025: AI, Trump, and Global Economic Shifts Take Center Stage

Trump does Davos

Welcome back to our Need to Know: Davos newsletter! AI Infrastructure investment: Trump touted the $500B "Stargate" project" with Oracle, SoftBank, and OpenAI, citing it as evidence of renewed business confidence in the U.S. He also will press Saudi Arabia to invest up to $1 trillion, saying he'll ask Saudi Crown Prince Mohammed bin Salman to "round it up" from $600 billion. Tariffs & Trade: Trump laid out a simple formula: manufacture in America with low taxes, or face tariffs. He called them "stroke of the pen" policies that will generate "trillions" for the Treasury. Russia's war against Ukraine: The president blamed high oil prices for prolonging the conflict. "If the price came down," he said, "the Russia-Ukraine war would end immediately." He described war as the worst since World War II. NATO: Trump wants to more than double NATO members' defense spending requirements to 5% of GDP. He claimed credit for getting members to pay 2% during his first term: "They didn't pay until I came along." E.U. relations: He called the European Union "very, very unfair" to the U.S., citing VAT taxes, agricultural barriers, and slow approvals for building projects. Trump shared an anecdote about a week-long Irish approval that would've taken "5-6 years" from the E.U. He made sure to add a diplomatic caveat: "I love Europe, I love the countries of Europe, but the process is a very cumbersome one." Here's what else is happening at the World Economic Forum in Davos. Before Trump's appearance, Davos finally seemed to turn its attention to AI -- though naturally, Trump found his way into that conversation, too. The $500 billion Stargate project, a massive AI infrastructure investment backed by OpenAI, SoftBank and Oracle, had SAP CEO Christian Klein praising it as a "great role model" -- while lamenting Europe's regulatory hurdles. His plea to E.U. leaders? Build their own Stargate. The AI conversation took an existential turn when Salesforce CEO Marc Benioff declared that the assembled executives would be "the last generation of CEOs who will only be managing humans." He showcased AI's current reach right there in Davos: an AI assistant in the WEF app that tracks attendees' sessions and makes recommendations. "From this point forward," he said, "we will be managing not only human workers, but also digital workers. And that is just incredible." Even Pope Francis joined the AI conversation from Vatican City, with a message delivered by Cardinal Peter Turkson: AI's human-like outputs are raising "critical concerns" about truth in public discourse. His call for "due diligence and vigilance" landed pointedly as AI companies packed the promenade outside, eager to showcase their latest innovations. Trump's pivot to Russia sanctions found an unexpected cheerleader: NATO chief Mark Rutte. "I was very, very happy with Trump's position," he told CNBC during an interview in Davos on Thursday after Trump threatened "high levels of Taxes, Tariffs, and Sanctions" if Russia doesn't end its war against Ukraine soon. Rutte hopes Europe will follow suit to "choke off the Russian economy." The NATO head's enthusiasm comes with a nod to Trump's long-standing criticisms: "Trump is right, Ukraine is closer to Europe, but Trump is also right that it is a geopolitical conflict." His goal? Getting Europe to "step up" while securing "a good and strong deal" to end the war. Meanwhile, WTO chief Ngozi Okonjo-Iweala wants everyone to take a deep breath about tariffs. While acknowledging that tit-for-tat retaliation on tariffs would be "catastrophic," she said they are also "a stroke of the pen policy" and noted that trade often gets unfairly blamed for deeper macroeconomic imbalances. As leaders hyperventilate over Trump's threats, she pointed to the resilience of global trade: $30.4 trillion worth, with 80% under WTO rules. Her message to the Davos crowd? Maybe just chill, which is not bad advice going into the last day of Davos. We'll be back in your inbox one more time tomorrow.

Donald Trump does Davos

A version of this article originally appeared in Quartz's Need to Know: Davos newsletter. To get updates on the World Economic Forum delivered straight to your inbox all week, sign up here. AI Infrastructure investment: Trump touted the $500B "Stargate" project" with Oracle, SoftBank, and OpenAI, citing it as evidence of renewed business confidence in the U.S. He also will press Saudi Arabia to invest up to $1 trillion, saying he'll ask Saudi Crown Prince Mohammed bin Salman to "round it up" from $600 billion. Tariffs & Trade: Trump laid out a simple formula: manufacture in America with low taxes, or face tariffs. He called them "stroke of the pen" policies that will generate "trillions" for the Treasury. Russia's war against Ukraine: The president blamed high oil prices for prolonging the conflict. "If the price came down," he said, "the Russia-Ukraine war would end immediately." He described war as the worst since World War II. NATO: Trump wants to more than double NATO members' defense spending requirements to 5% of GDP. He claimed credit for getting members to pay 2% during his first term: "They didn't pay until I came along." E.U. relations: He called the European Union "very, very unfair" to the U.S., citing VAT taxes, agricultural barriers, and slow approvals for building projects. Trump shared an anecdote about a week-long Irish approval that would've taken "5-6 years" from the E.U. He made sure to add a diplomatic caveat: "I love Europe, I love the countries of Europe, but the process is a very cumbersome one." Here's what else is happening at the World Economic Forum in Davos. Before Trump's appearance, Davos finally seemed to turn its attention to AI -- though naturally, Trump found his way into that conversation, too. The $500 billion Stargate project, a massive AI infrastructure investment backed by OpenAI, SoftBank and Oracle, had SAP CEO Christian Klein praising it as a "great role model" -- while lamenting Europe's regulatory hurdles. His plea to E.U. leaders? Build their own Stargate. The AI conversation took an existential turn when Salesforce CEO Marc Benioff declared that the assembled executives would be "the last generation of CEOs who will only be managing humans." He showcased AI's current reach right there in Davos: an AI assistant in the WEF app that tracks attendees' sessions and makes recommendations. "From this point forward," he said, "we will be managing not only human workers, but also digital workers. And that is just incredible." Even Pope Francis joined the AI conversation from Vatican City, with a message delivered by Cardinal Peter Turkson: AI's human-like outputs are raising "critical concerns" about truth in public discourse. His call for "due diligence and vigilance" landed pointedly as AI companies packed the promenade outside, eager to showcase their latest innovations. Trump's pivot to Russia sanctions found an unexpected cheerleader: NATO chief Mark Rutte. "I was very, very happy with Trump's position," he told CNBC during an interview in Davos on Thursday after Trump threatened "high levels of Taxes, Tariffs, and Sanctions" if Russia doesn't end its war against Ukraine soon. Rutte hopes Europe will follow suit to "choke off the Russian economy." The NATO head's enthusiasm comes with a nod to Trump's long-standing criticisms: "Trump is right, Ukraine is closer to Europe, but Trump is also right that it is a geopolitical conflict." His goal? Getting Europe to "step up" while securing "a good and strong deal" to end the war. Meanwhile, WTO chief Ngozi Okonjo-Iweala wants everyone to take a deep breath about tariffs. While acknowledging that tit-for-tat retaliation on tariffs would be "catastrophic," she said they are also "a stroke of the pen policy" and noted that trade often gets unfairly blamed for deeper macroeconomic imbalances. As leaders hyperventilate over Trump's threats, she pointed to the resilience of global trade: $30.4 trillion worth, with 80% under WTO rules.

What we learned in Davos

Welcome back to this year's final Need to Know: Davos newsletter! After a week dominated by President Donald Trump's shadow and tariff tensions, Davos 2025 wrapped up with a subdued final day, giving the world's elite a chance to catch their breath and focus on the broader picture. One of the final panels brought together the world's top economic voices for a reality check. BlackRock CEO Larry Fink pushed back against European pessimism, saying that "the economy is larger than any one political party." European Central Bank President Christine Lagarde pointed to Europe's "huge potential" in GDP, talent, and savings, urging leaders to "respond to this wake-up call and existential threat." Both Lagarde and IMF chief Kristalina Georgieva emphasized AI's crucial role in growth. "Make sure that artificial intelligence is not a privilege of few," Georgieva urged. Lagarde said that AI's potential is "huge," but that it must "improve the state of the world, for all of us." Georgieva also zeroed in on productivity as the key differentiator between U.S., European, and emerging market growth. Her prescription for lagging regions? "Capital has to have long legs and go where it makes the biggest difference," she said, with a particular call for Europe to deepen its capital markets. All of these themes echoed through the week at the World Economic Forum: Europe's challenges and potential, AI's promise and perils, and the ever-present question of American influence. The gathering's official theme, "Collaboration for the Intelligent Age," took on new meaning with each passing day. Monday opened with European leaders defending democracy and climate action against Trump's America First agenda. By midweek, his virtual appearance laid out a second-term vision from tariffs to his $500 billion "Stargate" AI project, while Meta's moderation retreat and Spain's call for digital ID requirements highlighted the growing rift over tech governance. NATO chief Mark Rutte surprised many by embracing Trump's Russia stance, while WTO head Ngozi Okonjo-Iweala urged everyone to "chill" about tariffs. Even JPMorgan's Jamie Dimon and Norway's sovereign wealth fund chief agreed on one thing: Trump's return was awakening Wall Street's "animal spirits." Through it all, one message remained clear: Whether it's AI access, trade policy, or capital markets, the push-and-pull between cooperation and competition will define 2025 -- Trump's version of it, anyway.

That's a wrap for Davos 2025. Here's what we learned

A version of this article originally appeared in Quartz's Need to Know: Davos newsletter. To get updates on the World Economic Forum delivered straight to your inbox, sign up here. After a week dominated by President Donald Trump's shadow and tariff tensions, Davos 2025 wrapped up with a subdued final day, giving the world's elite a chance to catch their breath and focus on the broader picture. One of the final panels brought together the world's top economic voices for a reality check. BlackRock CEO Larry Fink pushed back against European pessimism, saying that "the economy is larger than any one political party." European Central Bank President Christine Lagarde pointed to Europe's "huge potential" in GDP, talent, and savings, urging leaders to "respond to this wake-up call and existential threat." Both Lagarde and IMF chief Kristalina Georgieva emphasized AI's crucial role in growth. "Make sure that artificial intelligence is not a privilege of few," Georgieva urged. Lagarde said that AI's potential is "huge," but that it must "improve the state of the world, for all of us." Georgieva also zeroed in on productivity as the key differentiator between U.S., European, and emerging market growth. Her prescription for lagging regions? "Capital has to have long legs and go where it makes the biggest difference," she said, with a particular call for Europe to deepen its capital markets. All of these themes echoed through the week at the World Economic Forum: Europe's challenges and potential, AI's promise and perils, and the ever-present question of American influence. The gathering's official theme, "Collaboration for the Intelligent Age," took on new meaning with each passing day. Monday opened with European leaders defending democracy and climate action against Trump's America First agenda. By midweek, his virtual appearance laid out a second-term vision from tariffs to his $500 billion "Stargate" AI project, while Meta's moderation retreat and Spain's call for digital ID requirements highlighted the growing rift over tech governance. NATO chief Mark Rutte surprised many by embracing Trump's Russia stance, while WTO head Ngozi Okonjo-Iweala urged everyone to "chill" about tariffs. Even JPMorgan's Jamie Dimon and Norway's sovereign wealth fund chief agreed on one thing: Trump's return was awakening Wall Street's "animal spirits." Through it all, one message remained clear: Whether it's AI access, trade policy, or capital markets, the push-and-pull between cooperation and competition will define 2025 -- Trump's version of it, anyway.

Heard in Davos: What we learned from the WEF in 2025

DAVOS, Switzerland, Jan 24 (Reuters) - World leaders and business executives left the Swiss mountain resort of Davos after a week of discussions dominated from a distance by Donald Trump's return as U.S. President. Here's what we learned: MIDDLE EAST There was real talk of regional peace, driven by Israel's ceasefires with Hamas and Hezbollah, with friends and foes agreed that if anyone can push Israeli Prime Minister Benjamin Netanyahu to agree to a Palestinian state it is Trump. Iran, one of Trump's main targets during his first term, chose Davos to tell the world it was ready to renegotiate a nuclear deal, had no ambition or intention of building a nuclear bomb and posed no threat to its neighbours or the world. "Now it's the time for us to move forward based on opportunity, not threats," Tehran's diplomatic face, Javad Zarif, Vice-President for Strategic Affairs, said. UKRAINE World leaders and businesses positioned themselves for a ceasefire in Ukraine, with Trump using his remote video address to say he wants to meet Russian President Vladimir Putin "immediately" to negotiate an end to nearly three years of war. Ukraine's Volodymyr Zelenskiy said one condition of any deal would be a European contingent of at least 200,000 peacekeepers, a demand Russia rejected. Meanwhile, his officials are lining up larger privatisations to attract foreign investment in the roughly $500 billion reconstruction effort ahead. "The recovery starts before a peace deal," Henrik Andersen, CEO of wind turbine maker Vestas, said after closing a $470 million wind farm deal in Ukraine. FINANCE For financiers touting for business, U.S. deregulation is seen as awakening the "animal spirits" likely to prompt dealmaking across industries, including in finance with banks expected to consolidate in both the United States and Europe. While "economic exceptionalism" was one phrase doing the rounds in the corridors of Davos to describe U.S. policy under the new Trump administration, investors and bankers expressed confidence in the underlying strength of the U.S. economy. Although not as visible as in other years, the crypto crowd were once again part of the Davos discussion. The question for many was if, and how, mainstream finance may embrace crypto in light of the U.S. move to draft new rules, with many executives signalling they need to wait and see. AI Two years after ChatGPT captured the world's imagination, tech executives and investors say using AI agents to automate certain tasks, starting with the straightforward and repetitive ones, could fuel the next wave of adoption. "Agents are a big part of how AI will impact (the) workforce ... this is the year that we'll see deployment of agents inside enterprises," said Guru Chahal, partner at Lightspeed Venture. Because the sheer scale and complexity of AI models already requires huge amounts of data, much of the talk in Davos was around the associated infrastructure and geopolitics. The message from U.S. business executives is that while the U.S. is ahead of China in AI for now, the government needs tech-friendly policies and investment to maintain the edge. "It comes back to whether or not they can do the infrastructure build-out alone," said Jared Cohen, co-head of the Goldman Sachs Global Institute. ENERGY Davos delegates felt the energy industry landscape shift around them as they digested a spate of Trump announcements. These ranged from pledging to unleash the U.S. energy industry to boost output, accelerating the pace of LNG projects, threatening the EU with tariffs if the bloc does not buy more gas, suspending new federal offshore wind leasing, declaring U.S. withdrawal from the Paris Climate Agreement and asking Saudi Arabia and OPEC to bring down the cost of oil. Washington's withdrawal from the climate pact is not expected to meaningfully change the energy transition momentum, which is seen more in China and Europe than the U.S., but executives in Davos said Europe needed to speed up deregulation to incentivise investments to maintain its competitiveness. DEI Trump's moves on DEI reverberated through the corridors in Davos, where gender parity, diverse workforces and better representation of minorities are key World Economic Forum goals. Escalating pressure on the private sector to ditch diversity programmes left some searching for new words to describe workplace practices they say are essential to their businesses. Trump has issued a series of executive orders cutting federal diversity, equity and inclusion (DEI) programs, which attempt to promote opportunities for women, ethnic minorities, LGBTQ+ people and other traditionally underrepresented groups. CHINA Trump's return to the White House had raised big concerns among Chinese business executives and investors about a further deterioration in bilateral relationship between the world's two largest economies. But the U.S. president unexpectedly held off on imposing tariffs on China on his first day back in power and, during his video address to Davos, he expressed a need for China's help in ending the war in Ukraine. This led some to speculate on the prospect of a rapprochement between Washington and Beijing, while questioning how long any honeymoon period might last. Global investors said they maintain an interest in China-related assets, but are eager to see more concrete stimulus policies. They will be particularly attentive to clues about how Beijing plans to address the prolonged property crisis, high local government debt and weak consumer demand. EUROPE ECB President Christine Lagarde characterised the global economic challenges facing Europe as "an existential threat". "If European leaders can get their act together and respond to this existential threat, there is a huge potential for Europe to respond to the call," said Lagarde. Some executives noted that Trump's promises to roll back corporate regulation in the U.S. had added fresh urgency to the EU's long-running discussions on how to be more competitive. "They're rolling back regulations in the U.S. fast, so it makes it more important to do (so) in Europe," said Nicolai Tangen, CEO of Norges Bank Investment Management. European Commission head Ursula von der Leyen told Davos that the bloc wants to dissuade innovative start-up firms from moving to the U.S. to grow by creating rules that would allow them to easily operate across the 27-nation European Union. Other executives said that while the EU's rhetoric on deregulation was encouraging, they wanted to see quick action. Reporting by the Reuters team in Davos; Compiled by Alexander Smith; Editing by Alex Richardson Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:DavosWind