Artificial intelligence dominated economic conversations at Davos 2026 as private equity firms increased their exposure to the fast-growing but still uncertain sector.
Investors attending the World Economic Forum described AI as unavoidable, even as questions around profitability, adoption, and sustainability remain unresolved.
Several of the world’s most valuable AI firms were cited as proof of the sector’s momentum, with valuations reaching historic levels.
OpenAI was highlighted during discussions for reaching a reported valuation of $500 billion, reflecting strong demand from global investors.
Anthropic also drew attention after reportedly doubling its valuation within months to around $350 billion.
The rapid rise in valuations has fuelled fears of speculative excess similar to previous technology bubbles.
Orlando Bravo, co-founder of Thoma Bravo, pointed to growing fear of missing out among funds chasing AI opportunities.
Funds are rushing to any AI story.
Orlando Bravo said.
Investors are committing large amounts of capital to early-stage and unproven AI projects in an effort to secure future market dominance.
Market participants compared the current enthusiasm to the early 2000s internet boom, when investment outpaced revenue growth.
Despite concerns, private equity groups continue to frame AI as a long-term strategic priority rather than a short-term trade.
Bravo suggested that while AI may not transform every software company, it will reshape many parts of the sector.
This view has reinforced the belief that remaining absent from AI could pose greater risk than overpaying for exposure today.
Davos served as a platform for funds to reaffirm confidence and signal commitment to the technology’s future.
Global financing volumes in 2025 reportedly reached $425 billion, with nearly half directed towards AI ventures.
The surge in AI investment has raised concerns about reduced capital flows into other sectors, including cryptocurrencies.
Analysts noted that bitcoin (CRYPTO:BTC) continues to be viewed as a digital store of value despite losing share of investor attention.
Ethereum (CRYPTO:ETH) was also cited as maintaining relevance due to its role in decentralised applications and smart contracts.
The competition between AI and crypto was described as both financial and ideological.
AI is being positioned as the next productivity revolution, while crypto continues to emphasise decentralisation and digital sovereignty.
Some observers warned that AI’s growing energy demands could create knock-on effects across blockchain networks.
Questions were raised at Davos about whether AI and crypto can coexist or will increasingly compete for capital and resources.
Private equity firms acknowledged the uncertainty but maintained that AI’s potential outweighs current risks.
Davos 2026 reinforced AI’s position as a central investment theme, even as debates over valuation and long-term impact persist.
At the time of reporting, Bitcoin price was $89,292.37.