Warren Buffett Compares the Risks of the Rapid Rise of AI to Those Posed by Nuclear Weapons

Legendary investor Warren Buffett, in a recent interview with CNBC, expressed concern over the current state of artificial intelligence development. He warned that the lack of clarity among AI leaders regarding where the technology is headed is dangerously comparable to the historical development of nuclear weapons.

'Even the people that are smartest about it say they don't know where it's going. It's one thing to say you don't know where you're going if you're Columbus and you can always turn around and go back, but the genie is out of the bottle,' said Buffett, famously known as the Oracle of Omaha.

Buffett drew parallels between the uncertainty surrounding AI and Albert Einstein's comments during World War II regarding the development of the atomic bomb. Einstein famously remarked that nuclear weapons 'changes everything in the world except how people think.' Buffett suggested that the rapid advancements in AI could have similar profound effects, but with even greater unpredictability.

'People have thought about it ever since, and ultimately the only progress they've made is they've gone from what they thought was one country would have it, and ... now we have eight, going on nine. Now we've got some people that scare the hell out of you if they've got a pop gun, let alone a nuclear weapon,' Buffett explained.

He Would Spend His Wealth to Solve Global Threats

While Buffett emphasised that the threat posed by nuclear weapons cannot simply be eradicated with money, he revealed that he would not hesitate to spend his entire wealth if it could help eliminate nuclear threats altogether — even if that meant risking his entire fortune.

'If I could look out with whatever I've got and I could pick out three countries that would permanently get out of the nuclear game, I'd do it in 5 seconds. I wouldn't wait around or die or do anything else. I'd just do it,' he said, speaking about his philanthropic outlook and willingness to act against global threats.

Buffett's concerns about nuclear proliferation are well-known. In Berkshire Hathaway's 2015 annual report, he stated: 'There is, however, one clear, present, and enduring danger to Berkshire against which Charlie and I are powerless. That threat to Berkshire is also the major threat our citizenry faces: a "successful" (as defined by the aggressor) cyber, biological, nuclear, or chemical attack on the US.'

He reiterated these fears during a Berkshire Hathaway shareholder meeting in 2024, highlighting AI's dual potential for both good and harm. His comments come at a time when the widely recognised Buffett stock market indicator has reached an all-time high of 224%, suggesting that US stock valuations are at their most expensive in history.

This indicator, which divides the total US stock market capitalisation by the latest quarterly GDP estimate, is regarded by Buffett as 'probably the best single measure of where valuations stand at any given moment.' Historically, when this metric has surged past its usual range of 40% to 100%, it has often preceded prolonged market downturns.

Buffett warned in 2001 that a surge beyond these levels signalled a market 'playing with fire'. Over the past 60 years, every time the indicator has surged, the US market has experienced extended bearish periods.

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