Larry Fink warns China will win without continued AI investment, dismisses bubble fears

'If we don't invest in AI, China will win': Larry Fink, CEO of BlackRock, in conversation with Mukesh Ambani

Mumbai, Maharashtra: On AI in the Jio-BlackRock event, CEO of BlackRock, Larry Fink, says, "I believe the greatest risk we have is if we don't invest and continue to invest, China will win. I believe the need to rapidly expand the AI opportunities is necessary... The opportunity that companies have in utilising AI is going to be present in everything we do... AI is among the most topical conversations we are having now, because it is disruptive. It is going to be disruptive for some industries, but it is also going to be very advancing... AI is going to allow more discovery, more opportunities..."

BlackRock's Larry Fink, Reliance's Mukesh Ambani Push Back On AI Bubble Fears: 'Greatest Risk We Have Is If We Don't Invest' - BlackRock (NYSE:BLK)

On Wednesday, BlackRock (NYSE:BLK) CEO Larry Fink and Reliance Industries chairman Mukesh Ambani argued that artificial intelligence is not a speculative bubble but a transformative force that could reshape global growth. AI Is Not A Bubble, But Strategic Imperative During a fireside chat in Mumbai, India, Fink pushed back against fears of an artificial intelligence bubble, saying the real danger lies in underinvestment, particularly as global competition intensifies. "I don't believe there's an AI bubble," Fink said. "The greatest risk we have is if we don't invest and continue to invest, China will win." Fink acknowledged that the massive, front-loaded spending on AI infrastructure could lead to failures and bankruptcies, but said that outcome is a natural part of capitalism. Some companies will fail, he said, while others will emerge as transformative winners. AI, Fink added, will disrupt industries ranging from finance to manufacturing, while accelerating breakthroughs in drug discovery, energy efficiency and scientific research. AI's Bigger Question: Who Benefits? Fink warned that AI's early gains may be unevenly distributed, potentially leaving some countries and economies behind. He noted that the technology must ultimately expand opportunity rather than concentrate wealth. Over the long term, Fink said AI and robotics could help offset aging populations, rising deficits and labor shortages in developed economies by boosting productivity and sustaining growth. Mukesh Ambani: AI Is India's Shortcut To Prosperity Ambani, who is currently India's richest man with a net worth of $99.1 billion, framed AI as essential to India's development, arguing that many of the country's biggest challenges are unsolvable without it. From delivering quality education to more than 200 million students to building affordable healthcare systems for 1.4 billion people, Ambani said AI enables solutions at scale and at a fraction of global costs. "We shouldn't be scared of AI," Ambani said, comparing the moment to the Industrial Revolution. Why India Could Win The AI Race Both leaders pointed to India's rapid adoption of digital technologies as a competitive advantage. Ambani said India's ability to embrace change could help it close the gap with wealthier nations over the next two to three decades. Reliance, BlackRock Eye India's Growing Mutual Fund Market Reliance Industries, India's biggest conglomerate, teamed up with BlackRock, the world's largest asset manager, to introduce mutual funds in India last year. Jio BlackRock Asset Management launched its first equity fund in August and by the end of December, its equity portfolio had grown to 31.98 billion rupees ($353 million) in assets under management, reported CNBC. While India remains one of the world's largest gold-buying nations, the country has been steadily shifting toward financial savings, with mutual funds gaining traction among investors. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs