Not chips but lack of electricity is the biggest challenge against the development of AI: BlackRock CEO claims Gujarati

New Delhi, 6 July 2026: Amidst the rapidly increasing use of Artificial Intelligence i.e. AI, Larry Fink, Chairman and CEO of BlackRock, the world’s largest asset management company, has given a big statement. He has said that till now the biggest challenge for the development and expansion of AI was to get advanced computer chips, but now availability of sufficient electricity, not chips, has become the biggest global concern. During an interview, Larry Finke explained that the proliferation of AI technology has caused demand for computing power to skyrocket, exposing vulnerabilities in America’s age-old power infrastructure.

According to Larry Fink, America has no shortage of energy resources and the country has ample capacity, especially in the form of natural gas, but the transmission system required to properly deliver this generated electricity to the data centers is very weak. He warned that America will need hundreds of billions of dollars of private investment to strengthen and modernize its power grid and if these steps are not taken in time, it will become impossible to move forward in the AI ​​field in the future. AI is not just a computer software technology, but it requires large amounts of uninterrupted energy and strong infrastructure to run continuously.

• Demand for AI computing capacity far exceeds supply

At present, the demand for AI computing capacity globally is much greater than its supply, due to which the shortage of advanced chips as well as electricity and other resources has become a major obstacle. Finke had also expressed concern that if the huge expenditure on AI does not reduce in the future, then small organizations like hospitals and local administrations will not be able to take full advantage of this revolutionary technology. He stressed that it is very important that AI reaches the common people so that hospitals, small businesses, transportation systems and local governments can also develop themselves using this modern technology.

Talking about the fears of an economic boom in the market due to the extraordinary investments being made in the AI ​​sector, Larry Fink had said that the current market situation has arisen only due to excessive demand and low supply, which will balance out in the long run. Commenting on the global economy, he added that despite the recent geopolitical crises, the global economy has shown strong resilience. Adaptive changes in energy production, supply chains and the development of new technologies have significantly helped in mitigating many economic challenges. To face future economic challenges, it will be essential to focus on sustainable development, private investment and strong infrastructure.