JPMorgan and BlackRock CEOs say AI demand is still growing

In short: The CEOs of JPMorgan Chase and BlackRock said they do not think there is an AI bubble, and they expect continued demand and spending.

What's going on

Jamie Dimon, CEO of JPMorgan Chase, said the roughly $1 trillion being invested in data centers will likely make sense over time. Data centers are large buildings filled with computers that run online services, similar to a power plant but for digital work. He said the spending also includes chips, wiring, and other hardware, and that “technology tends to pay for itself, just not in a straight line.”

Dimon also warned that not every bet will work out. He said it will be hard to “pick the winners and losers,” meaning some projects and companies will succeed and others will not.

In separate comments, BlackRock CEO Larry Fink said there is “not an AI bubble.” He argued the bigger issue is shortages, because demand is rising faster than expected.

The Financial Times reported that banks are also trying to reduce their exposure to risk tied to lots of debt being used to build new data centers. In simple terms, if too many data centers are financed with borrowing, lenders can get nervous if the expected profits take longer to arrive.

JPMorgan is also working with Anthropic on an AI model called Mythos that can help find security weaknesses (like a very fast inspector that spots cracks in a building). Anthropic CEO Dario Amodei said companies should fix the gaps within six to 12 months, and Dimon said the window to patch issues is now measured in minutes, not weeks.

What to watch

Expect more money to flow into data centers and security tools, but also more pressure on companies to prove the spending pays off. Fink also said AI could create a “K-shaped” outcome, where a few firms in each industry pull ahead while smaller ones may need to merge.

Source: Financial Times