blackrock

Jeff Bezos' AI venture, Project Prometheus, has secured a massive $10 billion in new funding, valuing the company at $38 billion. This AI lab, co-led by Bezos, focuses on creating tools for designing and manufacturing physical products, targeting industries beyond software. Bezos is actively involved in the company's strategic direction, aiming to enhance business efficiency.

A report alleged a broker explored defense investments before US-Israeli strikes on Iran. Sean Parnell, assistant to US War Secretary Pete Hegseth, has vehemently denied these claims. He stated the allegations are false and fabricated. Parnell demanded an immediate retraction of the report. Secretary Hegseth and the Department of War maintain their commitment to ethics and regulations.

Massive AI data center investments, projected to hit $7 trillion by 2030, are straining the insurance industry. Experts highlight capacity issues and unique risks like extreme weather and rapid hardware obsolescence. Complex, less transparent financing structures are also raising concerns for insurers and lenders alike.

The investment ultimately did not materialise, as the fund, introduced last year, was not yet available for purchase through Morgan Stanley’s platform. The report did not clarify how much authority the broker had to act independently or whether Hegseth was aware of the move. blackrock declined to comment, while Morgan Stanley and the Department of Defense did not immediately respond to requests for comment.

Larry Fink, blackrock’s CEO, warns that Iran’s ongoing threats could push oil to $150 a barrel, risking a deep global recession. Even post-ceasefire, regional instability around the Strait of Hormuz may keep prices elevated for years. He stresses the regressive impact on consumers and urges accelerated investment in alternative energy to shield economies from prolonged energy shocks.

blackrock CEO Larry Fink warns that college graduates may face high unemployment due to rapid AI adoption disrupting entry-level roles. He highlights society's slow adaptation to technological change, noting that while AI creates new opportunities, particularly in skilled trades, the traditional college-to-career path is no longer universal. blackrock is investing in skilled trades to address this gap.

Oil prices dropped significantly on Wednesday. This followed a US proposal to Iran and a slowdown in regional hostilities. Brent crude fell 3%. Gold and silver prices saw a substantial increase. This rally in precious metals reflects reduced fears of energy supply disruptions and potential inflation.

TV host Mike Rowe argues that decades of prioritizing college over skilled trades have created a significant disconnect between education and job demand. He highlighted that in the AI era, trades like electricians are becoming more crucial and lucrative, with some earning substantial salaries without college debt.

Tech leaders like Google's Ruth Porat and Elon Musk are raising alarms about America's energy infrastructure's ability to support AI's rapid growth. Massive investments in AI data centers are straining power supplies, prompting tech giants to pledge to cover their own energy costs and explore diverse power sources, including advanced nuclear.

Richard Bookstaber, a financial analyst and former hedge fund and US Treasury insider who wrote A Demon of Our Own Design, the book that foreshadowed the 2008 financial crisis, warns that today’s financial system is even more fragile. Private credit, AI-driven tech, stock concentration, and geopolitical tensions form a tightly linked network where shocks spread quickly. Unlike past crises, risks now arise from the physical world, energy, semiconductors, and supply chains, beyond the reach of traditional financial tools.

OpenAI CEO Sam Altman envisions AI as a utility, akin to water or electricity, accessible on demand and priced per use. He believes intelligence will become abundant, with providers selling it like tokens. However, the immense cost of data center expansion for AI services presents significant financing challenges, even leading to project adjustments.

OpenAI CEO Sam Altman acknowledges public distrust in AI, citing its blame for job losses and rising costs. He believes AI could fundamentally alter capitalism by shifting focus from scarcity to abundance, leading to difficult societal debates about the future of work, though he anticipates new jobs will emerge.

OpenAI CEO Sam Altman has warned tech companies about growing US criticism of AI, citing concerns over energy consumption and job cuts. He urged faster economic adoption of AI in America to maintain its global advantage, emphasizing its potential to improve the economy and rewrite societal rules. Recent polls indicate public sentiment leans towards concern over AI's risks.