Washington, July 6 (IANS) BlackRock Chairman and Chief Executive Larry Fink has said that the biggest hurdle for Artificial Intelligence (AI) is no longer advanced computer chips but the availability of electricity. He warned that the US must modernize its aging power grid, otherwise the next wave of technological innovation could be slowed.
In an interview with CNN’s Fareed Zakaria GPS, Fink said the rapid expansion of AI is creating strong demand for computing power, exposing vulnerabilities in America’s power infrastructure.
“We don’t have enough electricity in America,” Fink said. He described electricity as the biggest obstacle in the development of AI.
He said the US has ample energy resources, particularly natural gas, but lacks the transmission infrastructure needed to efficiently distribute power.
“We have a lot of electricity from natural gas, but we are not able to distribute it properly,” he said. He further said that the country would have to invest “billions of dollars” to expand and upgrade its electricity grid.
He said, “If we don’t do this, we won’t be able to succeed in the field of AI. AI is actually a bunch of electrons. So to make electrons you need electricity.”
Fink said demand for AI computing capacity currently exceeds supply, leading to shortages not only of advanced chips but also of electricity and other essential infrastructure.
“Right now, there is more demand than supply. We lack computing capacity right now, which I think is the biggest problem in our country today,” he said.
He warned that unless computing costs fall significantly, smaller organizations may find it difficult to take advantage of the AI revolution.
Fink said, “I’m not worried about whether BlackRock or J.P. Morgan have the money to invest in these models. But I’m very concerned about municipalities or hospitals. Will they invest in this?”
Speaking about increasing everyone’s access to AI technology, he said the US should “democratize AI” so that hospitals, local governments, transportation systems and even small businesses can use advanced AI tools.
“If we can’t do that, we’re going to have some serious structural problems,” he said.
Fink also dismissed concerns that equity markets are in a speculative bubble despite huge investments in artificial intelligence. Instead, he said unusually high demand has created a shortage that allows some companies to charge very high prices for their products.
Discussing the broader economy, Fink said recent geopolitical shocks, including the conflict involving Iran, have proven the strength of the global economic system.
“The global economy has actually relieved most of the pressures. We solve problems,” he said, pointing to increased energy production, diversification of supply and adoption of technology.
On America’s fiscal outlook, Fink argued that continued economic growth is the best way to handle rising government debt.
“If we cannot grow the economy at three percent every year, we will be in trouble,” he said.
He urged policymakers to encourage private investment and simplify infrastructure approval processes instead of relying on high taxes.
–IANS
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