Carson Block said artificial intelligence is a key reason Muddy Waters Capital LLC is rethinking plans for a long-short fund in India, saying his firm is “going back to the lab” on the idea.
“We are reevaluating how we will approach India in light of our house view on AI” and its impact on labor markets, the investment research firm’s founder said on Bloomberg TV. “We have spent a decent amount of time in India in the past year and a half, but I wanted to take a few steps back and reorient,” adding that the long-term outlook for India remains positive.
The rethink highlights how the artificial intelligence boom is reshaping global investment flows, with India at risk of losing out as investors favor markets tied more directly to AI infrastructure and semiconductor manufacturing.
Earlier this month, the country’s stock market dropped out of the world’s five biggest for the first time in three years as Taiwan overtook India in stock market value, powered mainly by a breakneck rally in the world’s largest chipmaker Taiwan Semiconductor Manufacturing Co.
AI could replace as much as 15% of highly paid knowledge workers in the US over the next several years, a trend that may have significant implications for India’s economy, Block said Thursday.
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