1 00:00:02,520 --> 00:00:06,199 Speaker 1: Bloomberg Audio Studios, podcasts. 2 00:00:05,800 --> 00:00:07,080 Speaker 2: Radio news. 3 00:00:07,360 --> 00:00:11,160 Speaker 3: In many ways, it's fulfilling the work that everybody has done. 4 00:00:11,240 --> 00:00:14,680 Speaker 3: I mean taking on the responsibility was something that I 5 00:00:14,840 --> 00:00:17,560 Speaker 3: was It was pretty daunting for me to do that 6 00:00:17,600 --> 00:00:23,760 Speaker 3: with my full time day job, but the amazing team 7 00:00:23,880 --> 00:00:29,200 Speaker 3: behind behind Davos really assisted with me and helped me out. 8 00:00:29,240 --> 00:00:34,240 Speaker 3: I have an amazing coachair And importantly, though, I think 9 00:00:34,920 --> 00:00:38,680 Speaker 3: I think everybody was in need of having a conversation. 10 00:00:40,520 --> 00:00:43,400 Speaker 3: You know, we as a board, we talked about that 11 00:00:43,440 --> 00:00:47,160 Speaker 3: we wanted to move the conversation and have a much 12 00:00:47,200 --> 00:00:50,800 Speaker 3: more open, robust conversation, and that's how we came up 13 00:00:50,840 --> 00:00:53,120 Speaker 3: with the spirit of dialogue as. 14 00:00:52,640 --> 00:00:54,000 Speaker 2: The foundation of today. 15 00:00:54,400 --> 00:00:56,320 Speaker 3: But I think the confluence of so many things going 16 00:00:56,360 --> 00:01:00,160 Speaker 3: on globally, I think, you know, we were able to 17 00:01:00,200 --> 00:01:04,880 Speaker 3: be at the right moment, in the right spot. And importantly, 18 00:01:05,240 --> 00:01:07,200 Speaker 3: let me start over with the foundational issues. I mean, 19 00:01:07,240 --> 00:01:09,720 Speaker 3: the fifty five years of claud Schwab was a foundation 20 00:01:09,760 --> 00:01:11,760 Speaker 3: of what we were being able to build upon. But 21 00:01:14,080 --> 00:01:18,399 Speaker 3: no place other than the World Economic Forum in Davos 22 00:01:19,840 --> 00:01:22,559 Speaker 3: has the combination of world leaders and we had eighty 23 00:01:22,640 --> 00:01:24,880 Speaker 3: four I think the only other place where you have 24 00:01:24,920 --> 00:01:26,479 Speaker 3: eighty four world leaders in one place. 25 00:01:26,800 --> 00:01:28,200 Speaker 2: Is that the EU one in New York. 26 00:01:28,800 --> 00:01:31,920 Speaker 3: But we had over eight hundred CEOs and share, we 27 00:01:31,959 --> 00:01:37,080 Speaker 3: had civil society. We had so many different people here, 28 00:01:37,400 --> 00:01:39,560 Speaker 3: and I think it was that conversation, that spirit that 29 00:01:39,600 --> 00:01:40,720 Speaker 3: really made it. 30 00:01:40,880 --> 00:01:42,600 Speaker 1: I guess it was touch and go because at times 31 00:01:42,640 --> 00:01:46,640 Speaker 1: people were bracing for a belligerent speech from President Trump. 32 00:01:46,680 --> 00:01:48,560 Speaker 1: So I don't know how you look at geopolitics and 33 00:01:48,600 --> 00:01:50,960 Speaker 1: geoeconomics given what we've learned so far. 34 00:01:52,400 --> 00:01:54,720 Speaker 3: I think because of all that, everybody wanted to hear. 35 00:01:54,880 --> 00:01:58,800 Speaker 3: I think Tuesday was just as important. The conversations we 36 00:01:58,880 --> 00:02:04,600 Speaker 3: had with Europeans, with Mark Karney, with Emmanuel Macron. They 37 00:02:04,600 --> 00:02:10,120 Speaker 3: were great, honest, open conversations. I think Mark Karney delivered 38 00:02:10,120 --> 00:02:13,400 Speaker 3: an incredible conversation. I may not have agreed with everything 39 00:02:13,440 --> 00:02:15,560 Speaker 3: he said. That's not what we're here for. We're here 40 00:02:15,560 --> 00:02:17,760 Speaker 3: to have that conversation, but I really do believe the 41 00:02:17,800 --> 00:02:22,760 Speaker 3: openness of those conversations on Tuesday led obviously to a 42 00:02:22,919 --> 00:02:26,320 Speaker 3: large conversation with the President of the United States yesterday, 43 00:02:26,360 --> 00:02:28,919 Speaker 3: and then we had the Piece edition this morning. But 44 00:02:29,000 --> 00:02:33,359 Speaker 3: my conversation even Wednesday morning with Jensen on the role 45 00:02:33,440 --> 00:02:36,160 Speaker 3: of Navidio and what does that mean for all of AI? 46 00:02:36,360 --> 00:02:39,080 Speaker 3: And you to me, I learned a lot of that conversation. 47 00:02:39,720 --> 00:02:42,360 Speaker 1: Do you worry about AI bubbles? I mean, this is 48 00:02:42,600 --> 00:02:44,640 Speaker 1: the thing that worries the markets. If you put your 49 00:02:44,639 --> 00:02:47,640 Speaker 1: black rock hat on for a second, it's AI and 50 00:02:47,639 --> 00:02:49,880 Speaker 1: it's geopolitics. Which one's more uncertain. 51 00:02:50,720 --> 00:02:53,160 Speaker 3: I don't think there's any uncertainty about A. There's no 52 00:02:53,320 --> 00:02:57,360 Speaker 3: question hundreds of billions of dollars is needed to build 53 00:02:57,360 --> 00:03:01,120 Speaker 3: this out. The capex is going to dry war global growth, 54 00:03:01,760 --> 00:03:03,680 Speaker 3: how that is going to be dispersed, and where it's 55 00:03:03,680 --> 00:03:05,560 Speaker 3: going to be. It's gonna be really dependent on each 56 00:03:05,600 --> 00:03:09,960 Speaker 3: and every government. But I'm sincerely believe there is no 57 00:03:10,120 --> 00:03:13,679 Speaker 3: bubble in the AI space. That being said, like in 58 00:03:13,800 --> 00:03:17,560 Speaker 3: everything else in capitalism, there's gonna be some big failures. 59 00:03:18,080 --> 00:03:21,720 Speaker 2: Okay, we always see a rotation and there's gonna be 60 00:03:21,760 --> 00:03:23,600 Speaker 2: some huge winners and some losers. 61 00:03:24,520 --> 00:03:29,040 Speaker 3: But do I believe the needed capital to build out 62 00:03:29,120 --> 00:03:30,240 Speaker 3: AI is. 63 00:03:30,240 --> 00:03:33,000 Speaker 2: One of the great opportunities for the world to come. 64 00:03:33,280 --> 00:03:35,240 Speaker 3: When you think about the hundreds of billions of dollars 65 00:03:35,280 --> 00:03:38,600 Speaker 3: that infrastructure that's necessary, Countries are gonna have to rebuild 66 00:03:38,600 --> 00:03:43,280 Speaker 3: their grids, we're gonna have to source new powers of energy. 67 00:03:44,400 --> 00:03:47,200 Speaker 3: Last night at a dinner, we had an amazing conversation 68 00:03:47,360 --> 00:03:50,720 Speaker 3: on how AI is gonna change science and how it's 69 00:03:50,720 --> 00:03:54,480 Speaker 3: going to improve human lives in terms of medicine. But importantly, 70 00:03:54,640 --> 00:03:56,920 Speaker 3: there is a strong foundational belief that AI is going 71 00:03:57,000 --> 00:03:59,840 Speaker 3: to accelerate new sources of power and if we can 72 00:03:59,920 --> 00:04:04,520 Speaker 3: have cheap sources of power, abundant cheap sources of power, 73 00:04:04,720 --> 00:04:07,600 Speaker 3: maybe things that we can't even think of today through AI. 74 00:04:08,720 --> 00:04:10,640 Speaker 3: Imagine how that could lift the rest of the world. 75 00:04:11,280 --> 00:04:15,320 Speaker 1: You announced a big actually partnership with Microsoft that you've 76 00:04:15,360 --> 00:04:18,200 Speaker 1: raised twelve point five billion as part of this, you know, 77 00:04:18,320 --> 00:04:21,080 Speaker 1: pardnership to Bank World Data Center. Yes, Like, when are 78 00:04:21,080 --> 00:04:22,200 Speaker 1: you hitting thirty million? 79 00:04:22,400 --> 00:04:22,920 Speaker 2: Thirty billion? 80 00:04:22,960 --> 00:04:25,119 Speaker 1: Yeah, thirty billion, when's that coming? 81 00:04:25,360 --> 00:04:28,120 Speaker 3: Well, we raised twelve twelve and a half, were actively 82 00:04:28,240 --> 00:04:30,480 Speaker 3: raising more money we did. We did already making it 83 00:04:31,560 --> 00:04:35,240 Speaker 3: an acquisition and aligned data centers. Total enterprise value was 84 00:04:35,279 --> 00:04:38,400 Speaker 3: forty billion dollars. But not only is Microsoft our partners 85 00:04:39,040 --> 00:04:42,320 Speaker 3: MGX of Abu Dhabi, the video is one of our 86 00:04:42,360 --> 00:04:45,359 Speaker 3: partners XAI is one of our partners, and so we 87 00:04:45,440 --> 00:04:49,240 Speaker 3: have an incredible partnership group in building this out, and 88 00:04:50,520 --> 00:04:53,919 Speaker 3: we are seeing more and more opportunity working alongside some 89 00:04:53,960 --> 00:04:58,280 Speaker 3: of the best hyperscalers, and so we see nothing but opportunity, 90 00:04:58,600 --> 00:05:01,120 Speaker 3: and that you know, we have to be judicious and 91 00:05:01,160 --> 00:05:03,400 Speaker 3: we have to be thoughtful about it. But I'm very 92 00:05:03,520 --> 00:05:06,320 Speaker 3: encouraged about what AI can do for humanity. 93 00:05:07,080 --> 00:05:09,160 Speaker 1: I mean, the way we've covered World Economic Forum is 94 00:05:09,160 --> 00:05:11,040 Speaker 1: also trying to figure out whether there was a move 95 00:05:11,080 --> 00:05:13,840 Speaker 1: away from US assets. Do you see that at all 96 00:05:13,920 --> 00:05:15,720 Speaker 1: or is it a conversation that you had with the 97 00:05:15,760 --> 00:05:16,680 Speaker 1: Trump administration. 98 00:05:18,000 --> 00:05:21,800 Speaker 3: So if I go back to early DeVos last year, 99 00:05:22,560 --> 00:05:26,920 Speaker 3: I would say the average world investor had unbelievable overallocation 100 00:05:27,040 --> 00:05:29,800 Speaker 3: in dollar at based assets, and I think over the 101 00:05:29,839 --> 00:05:33,480 Speaker 3: course of last year we saw probably a five percent reallocation. 102 00:05:34,279 --> 00:05:35,719 Speaker 2: And that's fine. 103 00:05:35,920 --> 00:05:38,480 Speaker 3: I mean, when your liability is another currents and you're 104 00:05:38,520 --> 00:05:40,560 Speaker 3: investing in dollar, I mean the value of the dollar 105 00:05:40,839 --> 00:05:45,520 Speaker 3: is an important consideration in your total return. Could there 106 00:05:45,560 --> 00:05:49,960 Speaker 3: be more reallocation of the dollar? I think the US because. 107 00:05:49,800 --> 00:05:51,680 Speaker 2: Of where we are at AI and the amount of 108 00:05:51,720 --> 00:05:54,520 Speaker 2: capitalism means. But I think I think we have a 109 00:05:54,720 --> 00:05:57,880 Speaker 2: you know, the US economy is really growing fast. 110 00:05:57,960 --> 00:06:01,240 Speaker 3: I mean we estimated it'll be over five percent, you know, 111 00:06:01,279 --> 00:06:03,480 Speaker 3: in the first quarter, So we are you know, the 112 00:06:03,560 --> 00:06:07,120 Speaker 3: key is now, don't just focus on GDP because GDP 113 00:06:07,680 --> 00:06:09,400 Speaker 3: is heavily oriented. 114 00:06:08,920 --> 00:06:12,440 Speaker 2: To all the cap X on AI and technology. The 115 00:06:12,520 --> 00:06:13,120 Speaker 2: key is. 116 00:06:14,720 --> 00:06:18,640 Speaker 3: In that in that economic condition, are we creating enough 117 00:06:18,680 --> 00:06:22,440 Speaker 3: great jobs and so so to me, that is what 118 00:06:22,440 --> 00:06:24,720 Speaker 3: what we need to be focused on, not just GDP 119 00:06:24,880 --> 00:06:27,600 Speaker 3: anymore because GDP is going to be powerful. And that's 120 00:06:27,600 --> 00:06:29,599 Speaker 3: one of the reason why I am still you know, 121 00:06:29,640 --> 00:06:31,120 Speaker 3: I do believe in the United States is one of 122 00:06:31,120 --> 00:06:33,760 Speaker 3: the great places to invest, and it will remain to 123 00:06:33,760 --> 00:06:36,359 Speaker 3: be one of the great places to invest. But having 124 00:06:36,400 --> 00:06:38,800 Speaker 3: a diversification, you know that we've seen a little bit 125 00:06:38,960 --> 00:06:41,520 Speaker 3: live here and there. I'm very relaxed about it. I 126 00:06:41,520 --> 00:06:43,000 Speaker 3: think there's too much noise about that. 127 00:06:43,360 --> 00:06:45,440 Speaker 1: What have you learned here in Davos. I mean you've 128 00:06:45,440 --> 00:06:50,120 Speaker 1: spoken to everyone. Are people nervous about the relationship between 129 00:06:50,160 --> 00:06:52,239 Speaker 1: the US and the EU is a little bit better 130 00:06:52,279 --> 00:06:54,520 Speaker 1: than it was? What do we do with China? What's 131 00:06:54,560 --> 00:06:56,560 Speaker 1: been the most surprising conversation you've had? 132 00:06:58,720 --> 00:07:02,279 Speaker 3: How needed people needed to be here to have a conversation. 133 00:07:03,120 --> 00:07:06,839 Speaker 3: I think people came here with a lot of trepidation. 134 00:07:07,760 --> 00:07:09,280 Speaker 3: I think they came here with a lot of fears, 135 00:07:10,640 --> 00:07:13,240 Speaker 3: and I do believe we're going to be leaving Dabbas 136 00:07:13,320 --> 00:07:15,040 Speaker 3: with less geopolitical fears. 137 00:07:16,240 --> 00:07:17,440 Speaker 2: I believe we have. 138 00:07:19,480 --> 00:07:23,400 Speaker 3: You know, if there can be peace in Ukraine, which 139 00:07:23,560 --> 00:07:26,120 Speaker 3: I'm heavily involved in and Black Rocks heavily involved in 140 00:07:26,200 --> 00:07:30,120 Speaker 3: working on the Prosperity Fund, I. 141 00:07:30,040 --> 00:07:33,720 Speaker 2: Mean, think about that. If we could have that, that's a. 142 00:07:33,680 --> 00:07:37,000 Speaker 3: Foundation of a more global economic growth. When you think 143 00:07:37,000 --> 00:07:39,960 Speaker 3: about when we entered twenty twenty five where we had 144 00:07:40,000 --> 00:07:42,920 Speaker 3: a war in Caza, we had all these different skirmishes, 145 00:07:43,240 --> 00:07:45,880 Speaker 3: and you know, we may be more nervous and focusing 146 00:07:45,920 --> 00:07:49,360 Speaker 3: on all these issues, but the reality the world is 147 00:07:49,400 --> 00:07:52,320 Speaker 3: becoming safer, not less safe in my mind. And the 148 00:07:52,360 --> 00:07:54,679 Speaker 3: last thing I want to say related to volatility, which 149 00:07:56,720 --> 00:08:00,320 Speaker 3: if you look at the ten year treasury on January first, 150 00:08:00,360 --> 00:08:05,040 Speaker 3: twenty twenty five, April first, and October first, and then 151 00:08:05,120 --> 00:08:08,280 Speaker 3: January first this year, if you're looking at use those 152 00:08:08,280 --> 00:08:11,280 Speaker 3: four points of data at the ten year treasury, the 153 00:08:11,320 --> 00:08:13,560 Speaker 3: ten year treasury moved three bases points. 154 00:08:14,720 --> 00:08:15,960 Speaker 2: Okay, yes, we've had a lot of. 155 00:08:16,000 --> 00:08:18,080 Speaker 1: Volatility, There isn't a lot of volatileny. 156 00:08:18,080 --> 00:08:20,880 Speaker 3: But my point is the way I want to talk 157 00:08:20,920 --> 00:08:23,200 Speaker 3: about that when you look at those wider points, there 158 00:08:23,240 --> 00:08:27,520 Speaker 3: has been no volatility, and the key and the message 159 00:08:27,520 --> 00:08:30,240 Speaker 3: that we need to be telling people who were watching. 160 00:08:31,680 --> 00:08:33,640 Speaker 3: It's not about the moment. It's not about the noise. 161 00:08:33,720 --> 00:08:36,280 Speaker 3: I mean, it is about long term investing. You know, 162 00:08:36,280 --> 00:08:40,400 Speaker 3: when I think back, if you invested a dollar in 163 00:08:40,440 --> 00:08:43,600 Speaker 3: the S and P on January first, two thousand and 164 00:08:43,640 --> 00:08:46,160 Speaker 3: a year later, you had a thirty percent downdraft because 165 00:08:46,160 --> 00:08:48,400 Speaker 3: of the dot Com bloind but over that twenty five 166 00:08:48,480 --> 00:08:51,000 Speaker 3: years you made over an eight percent compoundent return, better 167 00:08:51,040 --> 00:08:53,960 Speaker 3: than almost any other investment. Again, I think there's just 168 00:08:54,080 --> 00:08:57,880 Speaker 3: not enough narrative, not enough conversation about we got to 169 00:08:57,920 --> 00:08:59,480 Speaker 3: just walk away from the noise. 170 00:09:00,200 --> 00:09:01,760 Speaker 2: And if you believe. 171 00:09:03,440 --> 00:09:07,960 Speaker 3: That we can be better, if you believe that your government, 172 00:09:08,200 --> 00:09:10,320 Speaker 3: your economy is going to grow, you need to grow 173 00:09:10,360 --> 00:09:14,000 Speaker 3: with it. I said something in one of my meetings 174 00:09:14,040 --> 00:09:16,719 Speaker 3: earlier today, I don't remember which one now, and this 175 00:09:17,280 --> 00:09:21,160 Speaker 3: one very powerful person in AI came up to me 176 00:09:21,280 --> 00:09:23,960 Speaker 3: yesterday and he said, you're right. And what I said was, 177 00:09:25,400 --> 00:09:29,760 Speaker 3: we need to make sure if this AI transformation is real. 178 00:09:30,720 --> 00:09:33,080 Speaker 3: I think we need to make a responsibility getting more 179 00:09:33,120 --> 00:09:35,640 Speaker 3: people to be investing alongside of it. 180 00:09:36,120 --> 00:09:36,840 Speaker 2: Not watching. 181 00:09:37,520 --> 00:09:40,120 Speaker 3: And I always say, if you believe in your country, 182 00:09:40,679 --> 00:09:42,800 Speaker 3: if you believe in your country, why aren't you investing 183 00:09:42,840 --> 00:09:45,160 Speaker 3: with your country? And the best way of investing is 184 00:09:45,160 --> 00:09:48,880 Speaker 3: in a broad index in your country. And I think 185 00:09:49,200 --> 00:09:56,440 Speaker 3: one of the foundational problems of Europe has been the underinvestment. 186 00:09:55,920 --> 00:09:58,040 Speaker 2: The lack of capital markets in Europe. 187 00:09:58,160 --> 00:10:00,800 Speaker 3: When you think about the success in the last twenty 188 00:10:00,800 --> 00:10:05,280 Speaker 3: four months in Japan, it started when the then Prime 189 00:10:05,320 --> 00:10:10,040 Speaker 3: Minister Kashita doubled the size of the NISA account. 190 00:10:09,679 --> 00:10:11,880 Speaker 2: Which is a self directed retirement account. 191 00:10:12,000 --> 00:10:15,080 Speaker 1: Larry, does that change after the threats and warnings from 192 00:10:15,080 --> 00:10:18,960 Speaker 1: President Trump for Europe? Is this the time where they focus? 193 00:10:19,240 --> 00:10:23,480 Speaker 3: But I heard Christine Legard talk about, you know, Europe 194 00:10:23,600 --> 00:10:27,440 Speaker 3: needs a capital markets, the unified capital markets. I think 195 00:10:27,440 --> 00:10:31,600 Speaker 3: that's an important message for Europe, you know, I you know, 196 00:10:31,679 --> 00:10:36,359 Speaker 3: I think President Trump's prompting Europe to take more responsibility. 197 00:10:35,520 --> 00:10:38,760 Speaker 2: And defense in NATO. All these things are really wonderful. 198 00:10:38,800 --> 00:10:42,839 Speaker 3: I think I actually am bullish on Europe because finally 199 00:10:42,880 --> 00:10:45,640 Speaker 3: I'm starting to see Europe doing these long term things 200 00:10:45,640 --> 00:10:47,720 Speaker 3: to build vitality for the future. 201 00:10:47,960 --> 00:10:49,960 Speaker 1: Larry, are you moving weft to Detroit? 202 00:10:53,160 --> 00:10:56,480 Speaker 3: There has been no There has never been a formal 203 00:10:56,520 --> 00:11:01,520 Speaker 3: conversation or a conversation at the level or at the 204 00:11:01,720 --> 00:11:05,079 Speaker 3: governance committee about any movement of Davos. There has been 205 00:11:05,120 --> 00:11:09,599 Speaker 3: a broad conversation, how can we bring the vitality of 206 00:11:09,640 --> 00:11:11,360 Speaker 3: the World Economic Forum. 207 00:11:11,280 --> 00:11:13,439 Speaker 2: In Davos to other locations. 208 00:11:13,800 --> 00:11:16,440 Speaker 3: I will be in Istanbul with the World Economic Forum 209 00:11:16,480 --> 00:11:21,600 Speaker 3: this spring in Istanbul. There is a spring World Economic 210 00:11:21,640 --> 00:11:26,880 Speaker 3: Forum now in Jetta in April, and so we need 211 00:11:26,920 --> 00:11:30,280 Speaker 3: to have this foundation of conversation not just here in Switzerland, 212 00:11:30,360 --> 00:11:32,600 Speaker 3: but we need to have it in other locations. And 213 00:11:32,679 --> 00:11:35,480 Speaker 3: to me, that is going to be the essence you know, 214 00:11:35,600 --> 00:11:38,960 Speaker 3: of having these things, having more deliberate conversations, and it 215 00:11:39,000 --> 00:11:41,479 Speaker 3: doesn't have to always be in Switzerland. 216 00:11:42,000 --> 00:11:43,600 Speaker 2: But Davos as Davos. 217 00:11:44,000 --> 00:11:47,319 Speaker 3: It is a great town, the weather is magnificent, The 218 00:11:47,360 --> 00:11:51,320 Speaker 3: hospitality of the Swiss government has been amazing. I think 219 00:11:51,440 --> 00:11:56,040 Speaker 3: the having this Congress center has really allowed us to have, 220 00:11:57,160 --> 00:12:03,760 Speaker 3: you know, intimate conversations, brilliant conversations and importantly open conversations.