Washington– Artificial intelligence’s biggest obstacle is no longer advanced computer chips but access to electricity, BlackRock Chairman and CEO Larry Fink said, warning that the United States must modernize its aging power grid or risk slowing the next wave of technological innovation.
Speaking in an interview with CNN’s “Fareed Zakaria GPS,” Fink said the rapid expansion of AI is creating unprecedented demand for computing power and exposing weaknesses in America’s electricity infrastructure.
“We don’t have enough power in the United States,” Fink said, describing electricity as the most significant constraint on AI development.
He said the United States has adequate energy resources, particularly natural gas, but lacks the transmission infrastructure needed to distribute electricity efficiently.
“We have plenty of power through natural gas, but we can’t distribute it in a proper way,” he said, adding that the country would need to invest “hundreds of billions of dollars” in expanding and upgrading its electricity grid.
“And if we don’t do that, we are not going to succeed in A.I.,” he said. “A.I. is just a bunch of electrons. So you need the power to create the electrons.”
Fink said demand for AI computing capacity currently exceeds supply, creating shortages not only in advanced chips but also in electricity and other critical infrastructure.
“At this moment, there’s more demand than supply,” he said. “We have shortages of compute right now which to me is the biggest problem we have in this country today.”
He warned that smaller organizations could struggle to benefit from AI unless computing costs fall significantly.
“I’m not worried about BlackRock or J.P. Morgan having the money to invest in these models,” Fink said. “But I am very worried about municipalities or hospitals. Are they going to invest in this?”
Fink called for broader access to AI technologies, saying the United States must “democratise A.I.” so hospitals, local governments, transportation systems and small businesses can also use advanced tools.
“If we can’t do that, then we’re going to have some real structural issues,” he said.
Fink also rejected concerns that equity markets are in a speculative bubble despite heavy investment in AI. He said strong demand has created shortages that allow some companies to charge significantly higher prices for their products.
Discussing the broader economy, Fink said recent geopolitical shocks, including the conflict involving Iran, showed the resilience of the global economic system.
“The global economy actually mitigated much of the stresses,” he said, citing increased energy production, supply diversification and technological adaptation. “We solve problems.”
On the U.S. fiscal outlook, Fink said sustained economic growth is the best way to manage rising government debt.
“If we cannot grow the economy by three per cent a year, we’re in trouble,” he said, urging policymakers to encourage private investment and streamline infrastructure approvals rather than relying on higher taxes. (Source: IANS)
