‘Enough to go around’: Brookfield’s bullish on AI investing, even if it has to share it with rivals

Brookfield Asset Management CEO Connor Teskey believes there is ample opportunity for investors to capitalize on the AI buildout, despite the intense competition among rivals. The $7 trillion AI buildout, estimated to occur over the next decade, is being shifted from hyperscalers to external money managers, leading to unexpected partnerships.

Brookfield's joint venture with Nvidia to acquire up to $100 billion in AI infrastructure assets, and its involvement in a consortium with Nvidia alongside rivals such as Apollo, Blackstone, and KKR, are examples of these partnerships.

Teskey emphasizes that the demand for AI infrastructure and its supporting energy supply chain is not fragile, highlighting the importance of fuel cells, renewables, batteries, and nuclear power in the mix. He further predicts that mature renewables, onshore wind and solar, battery storage, and nuclear will see the fastest growth, albeit with varying return expectations.

While Brookfield participates in the consortium with Nvidia, Teskey suggests that investors can capitalize on the substantial capital requirements that come with the AI infrastructure buildout. He cautions against overbuilding and highlights that the current imbalance in supply will persist for the foreseeable future.