Artificial Intelligence emerged as the dominant theme at the 2025 World Economic Forum in Davos, Switzerland, overshadowing nearly every other topic except President Trump’s Greenland discussions. Business Insider’s Ben Bergman reported that AI was what everyone was talking about, with intense debates about whether massive AI investments will deliver promised productivity gains and whether the industry is experiencing a bubble.
The physical landscape of Davos reflected tech’s dominance, with approximately 80% of the prominent “houses” along the main thoroughfare occupied by technology companies—a dramatic shift from previous years when finance and traditional blue-chip companies dominated. Palantir and Meta had the most visible presence, with Meta offering a free hot chocolate stand, while Amazon maintained a surprisingly small footprint. Google positioned itself away from the main action, and notably, OpenAI had no house and CEO Sam Altman did not attend, though some executives were present.
Nvidia CEO Jensen Huang characterized the current AI infrastructure buildout as “the largest in human history” and predicted it would drive job creation globally. However, Microsoft CEO Satya Nadella warned of bubble risks, stating that “for this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread.” He cautioned that if only AI companies are using AI, the industry faces bubble territory.
Talent acquisition emerged as a critical challenge for AI companies. Winston Weinberg, CEO of Harvey, revealed he spends 70% of his time on hiring and called it “the most important thing at our company right now.” He noted that big AI labs are spending “astronomical amounts of money” to attract top talent, creating intense competition.
The networking efficiency of Davos proved valuable for AI dealmaking. Alexandr Wang, former CEO of Scale AI and now Meta’s Chief AI Officer, reportedly signed nearly a third of Scale’s customers during his time at Davos last year. Weinberg noted that dealmaking began even before arrival, with transactions happening in business-class sections of flights from San Francisco and New York to Zurich.
Key Quotes
For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread.
Microsoft CEO Satya Nadella warned onstage at Davos about the risk of an AI bubble if adoption remains limited to AI companies themselves, rather than spreading across diverse industries and use cases.
If you try to rent an Nvidia GPU these days, it’s so incredibly hard, and the spot price of GPU rentals is going up, not just the latest generation, but two-generation-old GPUs.
Nvidia CEO Jensen Huang cited rising GPU rental prices as evidence against bubble concerns, arguing that sustained high demand for computing infrastructure indicates real underlying value rather than speculation.
It’s astronomical amounts of money at the big level. I’m super involved, and I think it’s the most important thing at our company right now.
Harvey CEO Winston Weinberg described the intense competition for AI talent, revealing he dedicates 70% of his time to hiring as big AI labs spend massive sums to attract top engineers and researchers.
The largest infrastructure buildout in human history.
Nvidia CEO Jensen Huang characterized the current AI development phase with this dramatic statement, predicting it would drive job creation across the global economy rather than causing widespread displacement.
Our Take
The Davos 2025 snapshot reveals an AI industry at a critical juncture—simultaneously experiencing unprecedented growth and facing existential questions about sustainability. The stark contrast between Huang’s triumphalism and Nadella’s cautionary notes reflects genuine uncertainty about whether we’re witnessing transformative infrastructure development or speculative excess.
What’s particularly telling is the absence of OpenAI’s Sam Altman from an event where AI dominated discussions. This could signal either confidence that doesn’t require validation or strategic repositioning as the industry matures. The talent war Weinberg describes suggests we may be approaching a bifurcation point where only well-capitalized players can compete for top AI researchers, potentially consolidating innovation among a few giants. The fact that deals are being struck in business-class cabins before even arriving demonstrates how AI has become the ultimate networking currency in global business circles.
Why This Matters
This report from Davos 2025 provides crucial insights into the current state of the AI industry at the highest levels of global business and technology leadership. The overwhelming presence of AI discussions and tech companies signals that artificial intelligence has moved from emerging technology to the central focus of global economic strategy.
The bubble debate is particularly significant as it reflects growing concerns about whether the massive capital investments in AI infrastructure—estimated in the hundreds of billions—will deliver proportional returns. Nadella’s warning about benefits needing to spread beyond AI companies themselves highlights a critical inflection point: AI must demonstrate real-world productivity gains across diverse industries to justify current valuations.
The talent war described by executives reveals structural challenges in the AI ecosystem that could impact innovation velocity and startup viability. When founders spend 70% of their time on hiring, it suggests the industry may be constrained more by human capital than technology or funding. This has implications for which companies will succeed and how quickly AI capabilities will advance and deploy across the economy.
Related Stories
- CEOs Express Insecurity About AI Strategy and Implementation
- Business Leaders Share Top 3 AI Workforce Predictions for 2025
- IBM CEO’s Vision on AI’s Future and Business Impact
- Big Tech’s 2025 AI Plans: Meta, Apple, Tesla, Google Unveil Roadmap
- Groq Investor Warns of Data Center Crisis Threatening AI Industry
Source: https://www.businessinsider.com/davos-tech-highlights-ai-deals-2026-1