Elon Musk’s ambition, AI boom or bust, and all the things that could shape 2025

Excited about the start of a new year? You’re not alone. As the Earth completes another revolution around the Sun—marked by the Gregorian calendar—the occasion is celebrated by millions and sparks hope and optimism across individuals with diverse aspirations.

According to Pew Research Center, about a third (31%) of people aged 30 to 49 set New Year’s resolutions, ranging from health and career goals to financial aspirations. While setting personal goals and sticking to them is a pathway to success, analyzing global trends and preparing for their potential impact is another way to stay ahead.

Several events—many unpredictable—could shape 2025, but here are some key developments you should be aware of:

Trump’s Second Coming and Its Ripple Effect on the Globe

On January 20, Donald Trump will be inaugurated as the 47th President of the United States. Judging by his campaign, there are strong indications that his administration will reverberate—both positively and negatively—across the globe.

End of Wars?

While nothing is set in stone, some ongoing wars might end, or peace deals could be brokered. The spotlight may not be on Sudan’s war, which has killed 61,000 people since 2023, but the Ukraine-Russia war and the Gaza-Israel conflict could see significant developments.

February 24 will mark three years since Vladimir Putin’s invasion of Ukraine, which has killed or injured over one million people and disrupted global supply chains. During his campaign, Trump vowed to end the war “within days” of assuming office. While this promise might prove difficult, the 78-year-old could potentially influence Putin and Ukrainian President Volodymyr Zelensky to negotiate peace.

Putin has expressed willingness to engage. “We have always said that we are ready for negotiations and compromises,” he said in December last year. Meanwhile, Ukrainian public opinion on ceding territory is shifting, with opposition to it declining steadily—from 85% in December 2022 to 51% in December 2024, according to a KIIS survey.

The Gaza conflict, triggered by Hamas’ unprovoked attack on October 7, 2023, has caused devastation, with at least 47,000 people killed on both sides. Trump’s tough-talking style might pressure Israel and Arab leaders to come to the negotiating table.

The Boom or Bust of AI

The exponential growth of Artificial Intelligence (AI), particularly Generative Artificial Intelligence (GAI), dominated 2024, with platforms like ChatGPT amassing 300 million users. Major tech companies such as Meta and Google have joined the race with tools like Meta AI and Gemini.

While some experts believe AI will surpass earlier technological revolutions in its impact, others caution that the industry might be overhyped.

BNY, an American international financial services company headquartered in New York City, believes that “AI’s role in the world will surpass that of other technologies that propelled earlier periods of tidal change.”

Capital Group noted; “AI may be overhyped and bigger than you think. The so-called hyperscalers — Alphabet, Amazon, Meta, and Microsoft — are spending about half of their capex budget on technology and half on buying land, constructing as many data centers as possible near reliable power and locking in long-term contracts with energy suppliers.”

However, investments and advancements in AI will undoubtedly continue to shape 2025, whether through progress or skepticism.

Also Read: Also Read: Does AI pose existential threat to humanity? Here’s what experts told us

Elon Musk’s ambition and political influence

Since acquiring Twitter (renamed X), Elon Musk’s influence has extended beyond technology into politics. In 2024, he campaigned vigorously for Donald Trump, a move that many credit with helping Trump return to the White House. Musk was subsequently appointed co-chair of the newly formed Department of Government Efficiency (DOGE).

Musk’s net worth has soared by 77% since Trump’s victory, making him the first person to surpass $400 billion. However, his growing political influence is raising concerns. In Germany, Musk endorsed the far-right Alternative for Germany (AfD) party, sparking backlash.

After Musk posted on his X page of over 211 million followers “Only the AfD can save Germany,” on December 20, 2024, he expanded his views in an opinion piece published in German newspaper Welt am Sonntag on January 2.

“It is indeed the case that Elon Musk is trying to influence the federal election,” noted German government spokesperson Christiane Hoffmann. “After all, freedom of opinion also covers the greatest nonsense.”

President of France, Emmanuel Macron has also spoken against Musk’s alleged influence in political matters in the EU.

“Ten years ago, who would have imagined that the owner of one of the world’s largest social networks would be supporting a new international reactionary movement and intervening directly in elections, including in Germany,” Macron said.

Back in the U.S., Musk’s relationship with Trump may face challenges. While Musk champions renewable energy and electric cars, Trump’s push for increased fossil fuel production could strain their alliance.

Earlier this week, Joe Biden announced the ban of on new offshore oil and gas drilling, covering much of the United States’ coastline. Trump, who has consistently pushed for increased domestic fossil fuel production, dismissed the ban as “ridiculous” during a radio interview. “I’ll unban it immediately,” he declared.

Would Musk, who is passionate about electric cars and own Tesla remain quite as Trump continue to go bullish on fossil fuel?

Elon Musk’s electric car company, Tesla, is now second place in the world’s best-selling electric-vehicle maker after it delivered 484,000 cars in the fourth quarter of last year while it’s main rivalry, BYD, a Chinese company, delivered 526,000 for the same period.

With the US still the highest buyer of Musk’s EV cars, there could be a clash of interest if Trump continues to encourage the use of fossil fuel.

A Year to Watch

The world stands on the precipice of major transformations in 2025. From the potential resolution of global conflicts to the rise (or fall) of AI and the growing influence of powerful figures like Elon Musk, this year promises to be one filled with challenges, surprises, and opportunities. Whether as an individual or a nation, being prepared for the uncertainties ahead will be the key to thriving in this dynamic new year.