CEO of Norway's sovereign wealth fund: AI partially offsets energy inflation, helping the market absorb shocks.

Nicolai Tangen, CEO of Norway's sovereign wealth fund, said the arrival of the artificial intelligence era is offsetting some of the inflationary impact of soaring energy prices triggered by the Middle East wars, helping markets absorb the shock. "This is remarkable because, given the current situation in the Middle East, you would expect this to translate into higher energy prices, higher fuel prices, higher fertilizer prices," Tangen said in an interview on Tuesday. He noted, "To some extent, this has already begun to impact Asia. We expect it to transmit to Europe and the US through price increases. This is usually bad for markets. But the markets are indeed coping calmly." Tangen said he was surprised that there hadn't been any major disruptions in the financial markets. "Inflation is usually a factor that hits markets. That's something we have to watch closely. On the other hand, we have AI, and we believe it has a deflationary effect. I think that's exactly what the market is currently digesting." (Jinshi)