On this episode of The Massive Query, Barclays Europe CEO, Francesco Ceccato, joins Euronews’ enterprise editor, Angela Barnes, on the World Financial Discussion board in Davos, Switzerland. The financial institution boss shares his views on financing the AI growth and the “fragmented” capital markets in Europe.
No single firm or authorities can finance all of the AI infrastructure and power wants required, Barclays Europe CEO, Francesco Ceccato, informed Euronews.
His feedback got here simply earlier than US President Donald Trump introduced billions of {dollars} in AI investments in collaboration with main tech firms. The three way partnership, named Stargate, is with OpenAI, Oracle and Softbank.
It means some $100bn (€96bn) will probably be deployed instantly – then the funding will probably be elevated as much as $500bn (€480bn) over the approaching 4 years.
Pressing want for AI infrastructure funding
The well timed dialog additionally comes off the again of the most recent Barclays AI report.
“I feel it is essential to tie it [the latest report] along with the report that we revealed roughly this time final 12 months, which was in regards to the impression that AI can have to spice up productiveness, and particularly, to assist ageing populations who’re maybe changing into much less productive – and to assist them in in the end creating higher financial outcomes. This 12 months, what we’re focussed on is how do you really take into consideration the power wants of the AI funding that we will need to make,” Ceccato mentioned.
“There’s clearly no firm or authorities that may finance all of the AI infrastructure or power wants. We have to see a big funding in power to assist the AI infrastructure. Why is that? As a result of each software of AI requires numerous computing energy. The most recent colossus, AI supercomputer that Elon Musk is investing in, has 200,000 GPUs. That requires an enormous quantity of power,” he defined.
The AI Barclays report notes how power calls for are going to go up massively between now and 2030.
“Simply to offer you one metric, the IEA is projecting that 1,000 terawatts per hour (TWh) goes to be wanted for all the information centres on the planet, and naturally it is information centres that may carry out these AI calculations. And due to this fact, our view is that we have to perceive that power infrastructure, which is essential to supporting AI,” the Barclays boss mentioned.
Is Europe ready to foot the invoice wanted to assist AI?
Ceccato reiterated that Europe must get behind AI infrastructure investments imminently however mentioned it may possibly’t all come from governments as a result of they’re fiscally constrained in lots of circumstances.
“It could actually come from the capital markets, however our capital markets in Europe are fragmented and due to this fact we have to reform them and we have to try this rapidly,” he informed Euronews.
Path to cleaner power “a dial” not “a change”
The Barclays boss additionally mentioned sustainability and the way the financial institution’s technique revolves across the transition.
“What’s essential is to recognise that attending to cleaner power is a dial and never a change. That signifies that we’ve got to maintain supporting our shoppers who’re desirous to transition and we will assist them with recommendation, with financing and with facilitation of financing via the capital markets. In order that’s the primary piece. The second piece is to know that from our perspective, our goal of 1 trillion of sustainable and transition finance by 2030 remains to be one thing that we as Barclays Europe need to proceed to contribute very meaningfully to and that is what we’ve got been doing.
“The third element of our technique is to proceed to assist firms on the early stage within the clear tech enterprise that may proceed to drive technological change that may assist the power transition itself,” he added.
The Massive Queryis a collection from Euronews Enterprise the place we sit down with business leaders and consultants to debate a number of the most essential subjects on right this moment’s agenda.
Watch the video above for the complete dialog with the CEO of Barclays Europe in Davos.
Video editor • Nicolas Coquet