AI is unstoppable despite geopolitical tensions

In a recent CNBC interview, Alger's Ankur Crawford delivered a crystal-clear message about the AI revolution that should make every business leader pay attention. Despite market volatility and growing US-China tensions affecting semiconductor stocks, Crawford maintains that the fundamental AI growth story remains unshaken. Her assessment offers a sobering counterpoint to recent market jitters.

Key insights from Crawford's analysis:

• AI adoption has reached the point of no return – "This train has left the station," Crawford emphasized, noting that major tech companies from Google to Nvidia continue to signal unwavering commitment to AI investments

• Much of AI spending is existential – Companies like Google "must spend" on AI capabilities, not because they want to, but because failing to do so puts their core business models at risk

• US-China tech restrictions may backfire – By blocking exports of advanced chips like Nvidia's H20, the US is inadvertently accelerating China's domestic semiconductor development, with Huawei already producing competitive alternatives

• The investment opportunity remains strongest in AI infrastructure providers – Crawford specifically highlighted "beneficiaries of the CapEx" including semiconductor companies and utilities supporting data center growth

The existential imperative behind AI spending

The most compelling insight from Crawford's perspective is that AI investment isn't optional for major tech players—it's existential. This explains why, despite investor pressure for clearer ROI timelines, companies continue pouring billions into AI infrastructure and talent.

This dynamic fundamentally changes how we should evaluate tech investments. Traditional ROI metrics become less relevant when the alternative to massive AI spending is potential obsolescence. For business leaders, this suggests the need to reframe AI not merely as a growth initiative but as a defensive necessity to maintain competitive parity.

What Crawford didn't mention: The two-speed AI economy

While Crawford focuses on tech giants and infrastructure providers, she overlooks an emerging bifurcation in the AI landscape. Most mid-market companies lack the resources for custom AI development but still face competitive pressure to adopt AI capabilities.

This dynamic is driving the explosive growth of API-based AI services and middleware solutions. Companies like Anthropic, Cohere, and dozens of vertical-specific AI startups are building the connective tissue