236: Investing in AI – From Its Origins to What Lies Ahead for Energy, Geopolitics, and Markets

Artificial intelligence is one of the most powerful forces reshaping the global economy, technology, and investing. But understanding AI requires looking at the full story — where it began, how it is unfolding, and where it is headed next.

With recent headlines in OpenAI from its $100bn Nvidia investment to its release of Sora, this special in-depth episode of The Bid brings together highlights from across our conversations with BlackRock experts to trace the arc of AI’s evolution: its origins, today’s massive infrastructure build-out, the unprecedented power demand it creates, its adoption across industries, its geopolitical stakes, and what lies ahead for investors.

Key themes:

• The history and milestones that shaped AI as an investment theme
• The massive infrastructure and capital fueling the AI build-out
• Why AI’s energy demands could reshape global power consumption
• How AI adoption is boosting productivity and changing work
• AI as a geopolitical competition between nations
• What the exponential future of AI may bring for markets

Key moments in this episode:

00:00 Introduction to a reflection on AI

00:20 The Evolution of AI: From Theory to Practice

00:56 The Investment Landscape of AI

01:45 Historical Milestones in AI

05:08 The Build-Out Phase of AI Infrastructure

07:25 Energy Demands of AI

09:43 Adoption and Transformation of AI

10:57 AI in Geopolitical Competition

12:09 The Future of AI: Layers of Opportunity

16:16 Conclusion and Investor Insights

Check out this playlist to learn more about AI investing: https://open.spotify.com/playlist/1rt6kLl0fzg9D7puEkAupq

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Sources: Capex spend from BlackRock Investment Institute, Reuters, October 2024; ; “North America Data Center Trends H2 2023”, CBRE 2024;

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