- Fink says compute demand is growing faster, not slowing, but the US supply lags.
- He added that too much crypto leverage had to wash out, and now sees stability at levels.
- Fink is also bullish on markets for the next 12 months, driven by the tech revolution.
BlackRock CEO Larry Fink, celebrating 50 years in finance, sat down for an interview this week and delivered an assessment of where the AI buildout stands, where it is falling short, and why he remains bullish on markets despite the scale of capital being consumed.
On Crypto and Leverage: More Stable Now
Asked about leverage risk in global markets following sharp swings in South Korea’s Kospi, Fink said the overall leverage picture is not comparable to 2008. He acknowledged that crypto once carried too much embedded leverage, which is why the market needed to wash out.
“I was always worried about the leverage in Bitcoin and crypto. There was too much. That’s why we had to wash out,” he said. “I think there’s more stability at these levels here.”
Bullish on the Next 12 Months
Despite all those concerns, Fink closed with a clear view of markets. The technological revolution is raising margins across industries, and he expects that to continue.
“I’m very bullish on the markets over the next 12 months,” he said. “The technological revolution is going to power better margins for more companies.”
Power Is the Real Bottleneck
Fink opened up about what he is seeing across his conversations with hyperscalers. Supply is not keeping up with demand, and that gap is growing rather than closing. “The demand for compute is not slowing down. It’s growing faster. The problem we have as a country is we’re not investing fast enough,” he said.
His other concern is whether the United States can build the power infrastructure fast enough to sustain the AI revolution without raising electricity prices for ordinary consumers and small businesses.
He pointed to China building 100 gigawatts of nuclear capacity and close to 100 gigawatts of solar as evidence that the US is not moving with enough urgency. State-level moratoriums on energy development alarmed him particularly.
Larry Fink said governments should focus on expanding affordable electricity generation instead of imposing AI moratoriums to maintain leadership in AI.
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