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In many ways, it's fulfilling the work that everybody has done. I mean taking on the responsibility was something that I was It was pretty daunting for me to do that with my full time day job, but the amazing team behind behind Davos really assisted with me and helped me out. I have an amazing coachair And importantly, though, I think I think everybody was in need of having a conversation.
You know, we as a board, we talked about that we wanted to move the conversation and have a much more open, robust conversation, and that's how we came up with the spirit of dialogue as.
The foundation of today.
But I think the confluence of so many things going on globally, I think, you know, we were able to be at the right moment, in the right spot. And importantly, let me start over with the foundational issues. I mean, the fifty five years of claud Schwab was a foundation
of what we were being able to build upon. But no place other than the World Economic Forum in Davos has the combination of world leaders and we had eighty four I think the only other place where you have eighty four world leaders in one place.
Is that the EU one in New York.
But we had over eight hundred CEOs and share, we had civil society. We had so many different people here, and I think it was that conversation, that spirit that really made it.
I guess it was touch and go because at times people were bracing for a belligerent speech from President Trump. So I don't know how you look at geopolitics and geoeconomics given what we've learned so far.
I think because of all that, everybody wanted to hear. I think Tuesday was just as important. The conversations we had with Europeans, with Mark Karney, with Emmanuel Macron. They were great, honest, open conversations. I think Mark Karney delivered an incredible conversation. I may not have agreed with everything
he said. That's not what we're here for. We're here to have that conversation, but I really do believe the openness of those conversations on Tuesday led obviously to a large conversation with the President of the United States yesterday, and then we had the Piece edition this morning. But my conversation even Wednesday morning with Jensen on the role of Navidio and what does that mean for all of AI? And you to me, I learned a lot of that conversation.
Do you worry about AI bubbles? I mean, this is the thing that worries the markets. If you put your black rock hat on for a second, it's AI and it's geopolitics. Which one's more uncertain.
I don't think there's any uncertainty about A. There's no question hundreds of billions of dollars is needed to build this out. The capex is going to dry war global growth, how that is going to be dispersed, and where it's going to be. It's gonna be really dependent on each and every government. But I'm sincerely believe there is no bubble in the AI space. That being said, like in everything else in capitalism, there's gonna be some big failures.
Okay, we always see a rotation and there's gonna be some huge winners and some losers.
But do I believe the needed capital to build out AI is.
One of the great opportunities for the world to come.
When you think about the hundreds of billions of dollars that infrastructure that's necessary, Countries are gonna have to rebuild their grids, we're gonna have to source new powers of energy. Last night at a dinner, we had an amazing conversation on how AI is gonna change science and how it's
going to improve human lives in terms of medicine. But importantly, there is a strong foundational belief that AI is going to accelerate new sources of power and if we can have cheap sources of power, abundant cheap sources of power, maybe things that we can't even think of today through AI. Imagine how that could lift the rest of the world.
You announced a big actually partnership with Microsoft that you've raised twelve point five billion as part of this, you know, pardnership to Bank World Data Center. Yes, Like, when are you hitting thirty million?
Thirty billion?
Yeah, thirty billion, when's that coming?
Well, we raised twelve twelve and a half, were actively raising more money we did. We did already making it an acquisition and aligned data centers. Total enterprise value was
forty billion dollars. But not only is Microsoft our partners MGX of Abu Dhabi, the video is one of our partners XAI is one of our partners, and so we have an incredible partnership group in building this out, and we are seeing more and more opportunity working alongside some of the best hyperscalers, and so we see nothing but opportunity, and that you know, we have to be judicious and we have to be thoughtful about it. But I'm very encouraged about what AI can do for humanity.
I mean, the way we've covered World Economic Forum is also trying to figure out whether there was a move away from US assets. Do you see that at all or is it a conversation that you had with the Trump administration.
So if I go back to early DeVos last year, I would say the average world investor had unbelievable overallocation in dollar at based assets, and I think over the course of last year we saw probably a five percent reallocation.
And that's fine.
I mean, when your liability is another currents and you're investing in dollar, I mean the value of the dollar is an important consideration in your total return. Could there be more reallocation of the dollar? I think the US because.
Of where we are at AI and the amount of capitalism means. But I think I think we have a you know, the US economy is really growing fast.
I mean we estimated it'll be over five percent, you know, in the first quarter, So we are you know, the key is now, don't just focus on GDP because GDP is heavily oriented.
To all the cap X on AI and technology. The key is.
In that in that economic condition, are we creating enough great jobs and so so to me, that is what what we need to be focused on, not just GDP anymore because GDP is going to be powerful. And that's one of the reason why I am still you know, I do believe in the United States is one of the great places to invest, and it will remain to be one of the great places to invest. But having a diversification, you know that we've seen a little bit
live here and there. I'm very relaxed about it. I think there's too much noise about that.
What have you learned here in Davos. I mean you've spoken to everyone. Are people nervous about the relationship between the US and the EU is a little bit better than it was? What do we do with China? What's been the most surprising conversation you've had?
How needed people needed to be here to have a conversation. I think people came here with a lot of trepidation. I think they came here with a lot of fears, and I do believe we're going to be leaving Dabbas with less geopolitical fears.
I believe we have.
You know, if there can be peace in Ukraine, which I'm heavily involved in and Black Rocks heavily involved in working on the Prosperity Fund, I.
Mean, think about that. If we could have that, that's a.
Foundation of a more global economic growth. When you think about when we entered twenty twenty five where we had a war in Caza, we had all these different skirmishes, and you know, we may be more nervous and focusing on all these issues, but the reality the world is
becoming safer, not less safe in my mind. And the last thing I want to say related to volatility, which if you look at the ten year treasury on January first, twenty twenty five, April first, and October first, and then January first this year, if you're looking at use those four points of data at the ten year treasury, the ten year treasury moved three bases points.
Okay, yes, we've had a lot of.
Volatility, There isn't a lot of volatileny.
But my point is the way I want to talk about that when you look at those wider points, there has been no volatility, and the key and the message that we need to be telling people who were watching. It's not about the moment. It's not about the noise.
I mean, it is about long term investing. You know, when I think back, if you invested a dollar in the S and P on January first, two thousand and a year later, you had a thirty percent downdraft because of the dot Com bloind but over that twenty five years you made over an eight percent compoundent return, better than almost any other investment. Again, I think there's just not enough narrative, not enough conversation about we got to just walk away from the noise.
And if you believe.
That we can be better, if you believe that your government, your economy is going to grow, you need to grow with it. I said something in one of my meetings earlier today, I don't remember which one now, and this one very powerful person in AI came up to me yesterday and he said, you're right. And what I said was, we need to make sure if this AI transformation is real. I think we need to make a responsibility getting more people to be investing alongside of it.
Not watching.
And I always say, if you believe in your country, if you believe in your country, why aren't you investing with your country? And the best way of investing is in a broad index in your country. And I think one of the foundational problems of Europe has been the underinvestment.
The lack of capital markets in Europe.
When you think about the success in the last twenty four months in Japan, it started when the then Prime Minister Kashita doubled the size of the NISA account.
Which is a self directed retirement account.
Larry, does that change after the threats and warnings from President Trump for Europe? Is this the time where they focus?
But I heard Christine Legard talk about, you know, Europe needs a capital markets, the unified capital markets. I think that's an important message for Europe, you know, I you know, I think President Trump's prompting Europe to take more responsibility.
And defense in NATO. All these things are really wonderful.
I think I actually am bullish on Europe because finally I'm starting to see Europe doing these long term things to build vitality for the future.
Larry, are you moving weft to Detroit?
There has been no There has never been a formal conversation or a conversation at the level or at the governance committee about any movement of Davos. There has been a broad conversation, how can we bring the vitality of the World Economic Forum.
In Davos to other locations.
I will be in Istanbul with the World Economic Forum this spring in Istanbul. There is a spring World Economic Forum now in Jetta in April, and so we need to have this foundation of conversation not just here in Switzerland, but we need to have it in other locations. And to me, that is going to be the essence you know, of having these things, having more deliberate conversations, and it doesn't have to always be in Switzerland.
But Davos as Davos.
It is a great town, the weather is magnificent, The hospitality of the Swiss government has been amazing. I think the having this Congress center has really allowed us to have, you know, intimate conversations, brilliant conversations and importantly open conversations.