Norway's Sovereign Wealth Fund CEO: AI Offsetting Energy Inflation Amid Middle East Tensions

Gate News message, April 28 — Nicolai Tangen, CEO of Norway’s sovereign wealth fund, stated on Tuesday that artificial intelligence is offsetting part of the energy price inflation triggered by Middle East tensions, helping markets absorb the shock.

Tangen noted that based on the current Middle East situation, energy, fuel, and fertilizer prices should be rising significantly. He said the inflationary pressure has already begun impacting Asia and is expected to transmit to Europe and the United States through price increases. “This is typically negative for markets,” Tangen explained. “However, markets are indeed handling it calmly.”

Tangen expressed surprise that no major financial market disruptions have emerged despite the inflationary pressures. He attributed this resilience to AI’s deflationary effects, stating: “Inflation is usually a factor that hits markets hard. But we have AI, which we believe has deflationary effects. I think this is exactly what the market is currently digesting.”