This is what BlackRock's Larry Fink said about the AI bubble in Davos

• BlackRock CEO Larry Fink pushed back on claims of an artificial intelligence investment bubble.
• Fink urged Western economies to invest and collaborate in AI to compete with China.
• He warned that AI's benefits must spread beyond the biggest firms for a lasting global impact.

BlackRock CEO Larry Fink is the latest to push back on the idea that the artificial-intelligence boom is destined to pop like past manias.

"I think there will be big failures, but I don't think we are in a bubble," said Fink on Wednesday during a panel discussion at the World Economic Forum in Davos, Switzerland.

Fink placed the wave of AI investment within a wider global competitive landscape, particularly between major economies.

"I think for the Western economies, if we don't cooperate, if we don't scale, China wins," he said. Fink said that China's population size and different privacy regime could translate into a major data advantage.

That dynamic, Fink argued, makes collaboration among the US and its allies essential. "I would much rather say that we need to spend more money to make sure that we're competing properly against China," he said.

Still, Fink warned that the AI boom could disappoint if its benefits remain concentrated among a small group of dominant firms.

"The key to that is making sure that the demand only comes if technology is diffused for more applications, more utilizations," he said.

"If the technology is just the domain of six hyperscalers, we will fail," he added.

Fink's comments came amid a broader debate about whether massive investments in AI are sending the stock markets into a bubble.

Some leaders, including OpenAI CEO Sam Altman, have cautioned about overexcitement in AI — even as they acknowledge the technology's game-changing potential.

Meanwhile, Microsoft cofounder Bill Gates said in late October that AI was in a bubble.