Ignore the 'AI revolution' at your peril, investors warn.

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(Bloomberg) — Although chipmaker Nvidia Corp. While the recent sell-off in shares of the U.S. may have fueled fears of an artificial intelligence bubble, investors and asset managers still have a broadly positive view of the technology — with some caveats.

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Speaking at the Bloomberg Invest Summit on Tuesday, Philippe Lafont, founder of Coteau Management, said he was bullish on AI despite the hype, pointing out that the increased chatter about the investment could actually be a good sign.

But he expressed some concern about geopolitical instability in China potentially affecting production of the chips that power AI computing. If China were to attack Taiwan, for example, it would adversely affect Nvidia shares and global stock markets, Lafont said.

Nvidia, the darling of the AI ​​boom, gained 6.8% on Tuesday, recovering from a recent selloff that wiped $430 billion off its market value. Earlier in the day, Neuberger Berman portfolio manager Steve Eisman — who rose to fame by betting against subprime mortgages and owns “a lot” of Nvidia shares — said he was undaunted.

“If you look at Nvidia's chart, you can barely see the correction,” Eisman said in a separate Bloomberg Television interview on Tuesday. “I don't think that makes any sense.”

During a wide-ranging discussion at Bloomberg Invest, hedge fund executives, chief investment officers and others discussed AI as an investment and the technology's promise to increase productivity in the investment world. .

Apollo Global Management Inc. — an alternative asset manager that oversaw about $671 billion at the end of the first quarter — sees an investment opportunity at the intersection of the energy transition and AI infrastructure, according to John Zito, its deputy chief for credit. Investment Officer Arms

“It requires trillions on a long-term basis, and I think we're the natural place to allocate that,” he said, noting that Apollo acquired semiconductor firm Wolfspeed Inc. financed, and entered into a recent agreement with. Intel Corp.

The Qatar Investment Authority's chief investment officer for the Americas, Mohammed Al Suwaidi, acknowledged the “buzz” around AI.

“Basically all businesses need to be more efficient,” he said. “One way to make humans more efficient in their processes and make companies more efficient is to empower them with AI.”

Main Group Chief Executive Officer Robin Grieve said his firm, which manages about $175.7 billion and is known for its structured strategy, has been using AI for at least a decade.

“It's part of our DNA,” Grieve said.

The London-based firm has doubled its assets under management since 2016, but has not increased its headcount in operations, he said. Still, AI won't make better decisions than humans, according to Grieve. He said the real benefit of AI is to improve employee performance rather than replace them.

When it comes to investing, AI “isn't just a hindsight from predictive modeling,” he said. Instead, according to Grieve, technology should be used to find “new, unrelated” sources of investment.

Daniel Morello, head of quantitative strategies at Freestone Guru, echoed similar sentiments in an earlier discussion on Tuesday. The hedge fund firm, which launched earlier this year with $3.5 billion in commitments, has focused on using AI to help with the investment process, versus making investment decisions.

One theme that most panelists will agree on: the riskiest thing you can do around AI investments is to stay on the sidelines.

“It would be irresponsible for us to ignore the AI ​​revolution,” said Kim Liu, CEO of the Columbia University Endowment.

To access the full live blog, click here to read on Terminal and here online.

–With assistance from Sonali Basak and Romain Bostick.

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