Investors came to Davos for AI. They left talking about Greenland

• Trump's Greenland acquisition comments shifted the mood from AI infrastructure discussions to concerns about trade leverage and political risk, with attendees expressing unease over unpredictable policy shifts
• Musk predicted Tesla's driverless robotaxis would be 'very, very widespread' in the U.S. by end of 2026 and that AI could surpass human intelligence in 2026, resetting focus back to data centers and energy demand
• Investment leaders described the environment as 'fragmented' requiring 'conviction-driven' capital deployment, with finance ministers emphasizing that geopolitical uncertainty is now the top economic risk

Davos 2025: AI Optimism Clashes with Geopolitical Uncertainty

The World Economic Forum in Davos revealed a stark contrast between technological optimism and geopolitical anxiety, with conversations oscillating between AI advancement and political disruption.

Key Themes

AI and Technology: Discussions centered on artificial intelligence transitioning from hype to production, with focus on data centers, energy infrastructure, and capital deployment. Elon Musk's presentation on January 22 highlighted Tesla's plans for "very, very widespread" driverless robotaxis in the U.S. by end-2026, and predicted AI could surpass human intelligence in 2025. Siemens Energy's Joe Kaeser emphasized Europe's industrial data advantage in AI development.

Geopolitical Disruption: President Trump's January 21 speech dramatically shifted sentiment when he insisted the U.S. needed to acquire Greenland. The remarks prompted unease among attendees and redirected conversations to tariffs, trade leverage, and political risk—overshadowing earlier technology discussions.

Investment Outlook

Waleed Al Mokarrab Al Muhairi of Abu Dhabi's Mubadala described 2026 investing as "conviction-driven," acknowledging increased global fragmentation. Leaders emphasized that geopolitics, not technology, now represents the primary uncertainty factor.

Regional Perspectives

• South Africa: Finance Minister Enoch Godongwana identified geopolitics as the country's top economic risk
• Saudi Arabia: Finance Minister Mohammed Al-Jadaan stressed businesses need certainty and advocated for dialogue to resolve disputes
• Europe: Positioned as having unique advantages in combining industrial data with AI computing power

Bottom Line

The conference reflected a "crisis of coherence and loss of trust," with technology advancing faster than political stability. While AI infrastructure and deployment opportunities remain robust, investors face navigating an unpredictable policy environment where traditional global rules are shifting rapidly.