Fed Chair Warsh Bullish on AI

United States — Federal Reserve Chair Kevin Warsh expressed strong optimism about artificial intelligence at a European Union — European Central Bank conference in Sintra, Portugal, calling it a 'paradigm shift' that will make the United States a 'big winner' in the medium term. He believes AI will create jobs, boost productivity, and strengthen the economy, influencing how central banks consider prices and interest rates. Business investment in AI, particularly in chips and data centers, has already driven significant U.S. economic growth, with companies like Micron Technology and Western Digital — Sandisk experiencing substantial stock market gains. While some analysts note a gap between AI spending and near-term revenue, Warsh anticipates a positive shift in business sentiment. Additionally, OpenAI has reportedly proposed giving the United States government a 5% ownership stake, valued at $42.6 billion, as part of broader discussions on public sharing in AI's economic benefits.