Bloomberg Talks Podcast
Episode: BlackRock CEO Larry Fink Talks AI Bubbles
Date: January 22, 2026
Host: Bloomberg
Guest: Larry Fink, CEO of BlackRock
Overview
In this insightful episode, BlackRock CEO Larry Fink shares his perspectives on the state of artificial intelligence, global investment trends, and the outcomes of the 2026 World Economic Forum in Davos. The conversation traverses AI’s transformative role, market outlooks on US assets, geopolitical shifts, long-term investing advice, and the integration of global dialogues beyond Switzerland. Fink’s comments reflect a blend of market pragmatism, optimism for AI’s impact on humanity, and calls for more robust capital markets, particularly in Europe.
Key Discussion Points & Insights
1. The Evolving Role of AI
- Transition from Feature to Partner: Fink recounts Samsung’s framing at CES, where AI is becoming a “trusted partner in everyday life” ([00:05]).
- AI Infrastructure & Investments: He explains that building out AI requires “hundreds of billions of dollars,” involving new data centers, energy sources, and upgraded power grids ([03:05]).
- Human Benefit: Fink voices optimism, predicting AI will revolutionize medicine and identify “cheap sources of power,” potentially uplifting the global standard of living ([04:09]).
2. Is AI a Bubble?
- No Bubble Yet, But Risks Remain: Fink asserts, “I sincerely believe there is no bubble in the AI space,” but acknowledges capitalism yields “big failures” and “huge winners and some losers” ([03:05]).
- Capital and Opportunity: The need for massive investment and energy transition will benefit economies that facilitate it.
3. BlackRock’s Major Partnerships & Data Center Push
- Deal Scope: BlackRock’s collaboration with Microsoft, Nvidia, and others has already raised $12.5 billion, with a target of $30 billion, and includes high-value acquisitions such as Aligned Data Centers ([04:26]).
- Global Partners: The effort is international, involving partners from Abu Dhabi and Asia.
4. US Assets and Investment Diversification
- Shifts in Global Investment: Fink notes a “5% reallocation” out of dollar-based assets but calls this “fine,” emphasizing the US’ strength stemming from AI-driven capex and an estimated GDP growth over 5% in 2026 ([05:33]).
- Jobs Over GDP: He stresses, “Don’t just focus on GDP...are we creating enough great jobs?” ([05:33]).
- Enduring US Appeal: He remains bullish on the US but supports portfolio diversification.
5. Davos 2026 – Reactions and Geopolitical Insights
- Dialogue is Key: Fink describes Davos as a forum with “84 world leaders” and “over 800 CEOs” fostering open, “robust conversation” on foundational issues ([00:22], [01:56]).
- Reducing Fear: Attendees arrived with “trepidation” but are “leaving Davos with less geopolitical fears” ([07:13]).
- US–EU Relations & China: The overall climate is reported as more optimistic; Fink is hopeful for peace in Ukraine and global economic improvement.
6. Long-Term Investing vs. Short-Term Volatility
- “Walk Away from the Noise”: Fink argues that surface volatility doesn’t reflect the true long-term trend, citing the S&P 500’s performance over 25 years ([08:33]).
- Encouraging Public Participation: He urges, “If you believe in your country...why aren't you investing with your country? The best way...is an abroad index in your country” ([09:40]).
7. Europe’s Capital Markets and Policy Shifts
- Need for Capital Market Unification: Fink highlights underinvestment in Europe and the importance of building strong capital markets, referencing the success of Japan’s NISA reforms ([09:40]).
- Trump’s Impact: He sees positive outcomes from President Trump’s push for Europe to increase responsibility in defense and economic cohesion ([10:34]).
- Christine Lagarde’s Comments: Fink supports her call that “Europe needs a capital markets, a unified capital markets” ([10:34]).
- Bullish on Europe: Overall, Fink expresses optimism as Europe takes “long-term things to build vitality for the future.”
8. Expanding the Davos Conversation Worldwide
- No Move from Switzerland: Despite rumors, “There has never been a formal conversation...about any movement of Davos” ([11:08]).
- Global Forums: WEF is expanding with sessions in Istanbul and Jeddah, aiming for more global inclusivity and dialogue ([11:08]).
Memorable Quotes & Notable Moments
“There is no bubble in the AI space...like in everything else in capitalism, there’s going to be some big failures. But...the needed capital to build out AI is one of the great opportunities for the world.”
— Larry Fink ([03:05])
“AI is going to accelerate new sources of power. If we can have...abundant, cheap sources of power...imagine how that could lift the rest of the world.”
— Larry Fink ([04:09])
“Don’t just focus on GDP...are we creating enough great jobs?”
— Larry Fink ([05:33])
“If you believe in your country...why aren’t you investing with your country? And the best way of investing is an abroad index in your country.”
— Larry Fink ([09:40])
“I finally am starting to see Europe doing these long-term things to build vitality for the future.”
— Larry Fink ([10:49])
“Davos is Davos. It is a great town. The weather is magnificent. The hospitality of the Swiss government has been amazing...open conversations.”
— Larry Fink ([11:29])
Important Timestamps
- 00:05: Framing AI as a living companion (Samsung, CES)
- 01:56: Opening about Davos’ unprecedented gathering and dialogue
- 02:54: Question on AI bubbles and uncertainty; start of major AI discussion
- 04:26: BlackRock-Microsoft partnership and data center investments
- 05:33: Global investment diversification and the US outlook
- 07:13: Reducing global fears at Davos, peace in Ukraine, and improving safety
- 08:33: Perspective on volatility, S&P 500, and advice for long-term investing
- 09:40: Call for greater investment self-reliance and building capital markets
- 10:34: Europe, capital markets, and impact of US administration prompts
- 11:08: Expanding global economic forums beyond Switzerland
Tone and Takeaway
Fink’s tone is practical, informed, and moderately optimistic—rooted in caution on hype but bullish on AI’s potential and the enduring strengths of US and, cautiously, European investment environments. He repeatedly returns to the value of long-term thinking over reactionary moves, and advocates for more global and inclusive economic dialogues, as Davos seeks to become less Eurocentric.