Big global investors see gold in AI but don't buy the rush

By Nell Mackenzie, Tala Ramadan and Utkarsh Shetti

ABU DHABI, Dec 10 (Reuters) - Big investors attending Abu Dhabi Finance Week voiced interest implicit the precocious valuations attached to AI-related companies but said that concern successful the infrastructure important to the sector's semipermanent ​success cannot beryllium dismissed.

Technology leviathans specified arsenic Alphabet, Meta and Oracle person rushed to indebtedness markets successful caller months to support ‌pace successful the Artificial Intelligence race, adding to unease astir an AI bubble.

For immoderate of the astir almighty personalities successful concern attending this week's state-backed concern league successful Abu Dhabi, ‌AI was the stand-out topic.

Here's what immoderate of them had to say:

FRANKLIN TEMPLETON CEO JENNY JOHNSON: EARLY DAYS

Johnson characterised caller marketplace enactment and worries astir an AI-related bubble arsenic the aboriginal days of the golden rush.

"Who cares? So, there's 7 stocks. We're talking astir 1 of the top technological changes successful our beingness and it's a spot similar saying the picks and shovels (in the golden rush) got truly expensive," Johnson said connected a league panel.

"We haven't adjacent ⁠begun to spot the interaction of AI," she ‌said, adding that it would instrumentality immoderate years earlier the exertion would go transformative and meaningful capable to look successful institution earnings, echoing policymakers and economists who proceed to measure AI's interaction connected productivity, labour markets and firm ‍earnings.

Franklin Templeton manages investments totalling astir $1.7 trillion.

BLACKSTONE CEO STEPHEN SCHWARZMAN: WATCH ELECTRICITY

Trillion-dollar alternate plus manager Blackstone's (BX.N) Schwarzman noted however AI present touches astir each portion of economical activity, with monolithic superior expenditure and demands connected electricity.

"We're going to person to theoretically treble the size of our energy grid to woody with this. That's a large ​thing ... to make electricity, you person to person a batch of different things hap successful society," helium told the conference.

ADIC CIO FOR PUBLIC ‌MARKETS SHIV SRINIVASAN: OPPORTUNITY

The Abu Dhabi Investment Council (ADIC) sovereign wealthiness money is among large Middle East investors that presumption AI-related stocks arsenic a bully accidental contempt soaring valuations.

"I similar AI and biotech, they person been large winners. I proceed to similar them," said Srinivasan.

The manufacture is successful the mediate of its journey, helium added.

TCI FOUNDER CHRIS HOHN: WAIT A MINUTE

Some hedge money managers questioned however affirmative AI would beryllium connected companies and their stocks.