Investors Focus Shift from AI to Greenland at Davos

• Elon Musk predicted Tesla's driverless robotaxis would be 'very, very widespread' in the U.S. by end of 2026 and that AI could surpass human intelligence in 2026
• Trump's insistence that the U.S. needed to acquire Greenland caused an immediate mood shift, with discussions pivoting from AI infrastructure to trade leverage and political risk
• Abu Dhabi's Mubadala deputy CEO described the investment environment as 'conviction-driven' amid a fragmenting world, while South Africa's finance minister identified geopolitical uncertainty as the top economic risk

Davos 2026: AI Optimism Collides with Geopolitical Uncertainty

The World Economic Forum in Davos this week revealed a stark divide between technological optimism and growing geopolitical concerns, as investors grappled with competing narratives that frequently collided.

Key Developments

Trump's Impact: President Trump's address drew massive crowds but created unease when he insisted on U.S. acquisition of Greenland. The remarks immediately shifted discussions from AI infrastructure and energy investments to trade leverage and political risk, dampening the event's mood overnight.

Musk's Counter-Narrative: Tesla CEO Elon Musk reset sentiment the following day with an ambitious vision including "very, very widespread" robotaxis across the U.S. by end of 2026 and predictions that AI could surpass human intelligence in 2026. This refocused conversations on data centers, computing power, and energy demand.

Market Implications

Mubadala's deputy CEO Waleed Al Mokarrab Al Muhairi characterized the 2026 investment environment as "conviction-driven," noting increasing global fragmentation. Leaders emphasized that geopolitics—not technology—has become the primary uncertainty factor.

Regional Positioning

• Siemens Energy's Joe Kaeser highlighted Europe's industrial data advantage for AI development
• South Africa's finance minister identified geopolitics as the country's top economic risk
• Saudi Arabia's finance minister stressed businesses need certainty and dialogue to resolve disputes

Dual Narrative

The conference effectively split into two parallel events: one focused on AI moving from hype to production, with discussions on "agentic AI" and massive capital deployment; the other centered on tariffs, geopolitical tensions, and shifting global rules.

The consensus: innovation is accelerating faster than political frameworks can adapt, creating what one executive called "a crisis of coherence and loss of trust" rather than an innovation crisis.