Conference Presentation, Fireside Chat, Panel
Conversation with BlackRock CEO Larry Fink & Brookfield Corp CEO Bruce Flatt | Global Conference '26
- The global economy is undergoing a rewiring process over the next 10 years, potentially extending 15 to 20 years, driven by an estimated $10 trillion capital deployment toward power, AI, factories, data centers, and fiber infrastructure.
- A persistent supply deficit exists in power, compute, and chips, with shortages in memory expected to continue as demand outpaces anticipation, leading to the emergence of compute futures and a new asset class.
- Security frameworks will require significant re-evaluation due to drone warfare and the potential for domestic terrorism involving low-cost drones, necessitating the construction of critical facilities underground.
- Private sector investment will lead the necessary build-out due to government fiscal deficits, with capital allocation to private markets in fiber, cloud, and AI backbones projected to rise from 50% to 75% over the next decade.
- Healthcare capabilities are expected to advance rapidly, with AI eventually providing medical advice at four times human accuracy and new devices enabling personal "medical teammates" to survey clinical developments overnight.
- Retirement systems are shifting globally toward self-directed defined contribution plans, a trend illustrated by Saudi Arabia's recent strategic pivot and Japan's market valuation doubling following tax exemption incentives for self-directed accounts.
- Returns in the AI sector are predicted to outperform wages, with long-term investors targeting 12% returns rather than 35%, while 30 funds with capital pools exceeding $1 trillion are anticipated to emerge, some reaching $5 to $10 trillion.
- Institutional investors are prioritizing continuity assets for long-term compounding, evidenced by partnerships involving 27-year lock-up periods and the in-house management of comprehensive solutions for large groups.
- Hyperscalers are increasingly partnering with asset managers for data center ownership via debt or partnership structures to optimize capital efficiency, with announcements for one-gigawatt data centers planned immediately.
- A "K-economy" is expected to emerge within the AI sector, consolidating industries into one or two winners per sector and forcing mergers, while companies focusing on short-term returns face disadvantages compared to those delivering long-term compounding.
- Long-term capital accumulation faces challenges from liability structures lasting only one to two years, which hinders investment in the future despite the significant capital expenditure required for companies to adopt AI.
- Governments and the private sector are currently insufficient in collaboration regarding major AI-related issues, while the AI phenomenon accelerates faster than the ability of programmers and designers to implement or anticipate its trajectory.