Gates, Bezos, And Their Billionaire Club Have a Plan to Save AI from Its Own Energy Meltdown

Artificial intelligence has revolutionized industries and probably padded your portfolio (or at least gave you something to brag about at parties). But all that innovation comes with a huge price tag… AI’s voracious hunger for electricity is wreaking havoc on global power grids. Turns out, your chatbot needs more than a server… it’s practically demanding its own power plant. But wait, there’s hope: Bill Gates and Jeff Bezos, armed with their billions (and maybe a little self-interest), are stepping in with a mining-tech startup to tackle the mess AI’s making.

(Source: Inc. Image)

To say that training AI models is power-hungry would be an understatement… it’s downright gluttonous. GPT-4 alone sucked up over 50 gigawatt-hours during training (enough to power 5,000 homes for an entire year). And this is just the beginning. By 2026, AI data centers are projected to consume 1,000 terawatt-hours annually… nearly double today’s usage. That’s more energy than Canada uses in a year, and Canada’s no slouch in the size department. Take Northern Virginia’s “Data Center Alley,” for instance. This 51-million-square-foot tech hub uses as much electricity annually as 800,000 homes. Globally, data centers already account for 3% of electricity consumption, matching the CO2 emissions of Brazil. By 2030, AI’s energy use is expected to double, leaving power grids scrambling and infrastructure groaning under the weight of demand.

To tackle this growing crisis, Gates and Bezos have backed KoBold Metals, a mining-tech startup now valued at $2.96 billion after raising $537 million in its latest funding round. Heavy hitters like T. Rowe Price, Andreessen Horowitz, Gates’ Breakthrough Energy Ventures, and Bezos Expeditions are all chipping in (because saving the world also happens to be a lucrative investment opportunity).

KoBold’s mission you ask? To find and extract critical minerals like copper, nickel, and lithium… the essential ingredients for batteries and renewable energy tech. Their AI-powered algorithms recently struck copper (not gold, but close enough) in Zambia. The discovery, valued at $2 billion, is expected to yield 300,000 tons annually by the 2030s. But Zambia is just the beginning. KoBold is setting its sights on Canada, Botswana, and Finland… prime real estate for rare earth minerals. Gates and Bezos are banking on these resources to lower the cost of renewable energy and batteries, ensuring AI’s explosive growth doesn’t completely torch the planet (or their portfolios).

AI servers are energy hogs, consuming 30-100 kilowatts per rack, compared to a measly 7 kilowatts for traditional setups. Nvidia shipped 100,000 AI servers last year, collectively burning through 7.3 times more energy annually than conventional systems. The need for critical minerals is growing more urgent by the second.

Even OpenAI CEO Sam Altman admits that AI’s future depends on clean energy breakthroughs (thanks for the insight, Captain Obvious). Gates and Bezos, through KoBold Metals, are fast-tracking solutions with cutting-edge tech and smart resource extraction. Of the $1 billion KoBold has raised, 40% is earmarked for projects like the Zambia copper mine, turning discoveries into fully operational facilities. Partnerships with mining giants like BHP and Rio Tinto further cement KoBold’s role in the energy transition.

As we start the new year, AI’s energy demands are shaping up to be one of 2025's biggest challenges. Gates and Bezos are hopeful that KoBold Metals can deliver the critical resources needed to sustain AI’s growth while reshaping the energy landscape. If they succeed, they’ll save both AI and the planet. If they fail? Well, maybe stock up on candles and practice your off-grid living skills… just in case.

P.S. Not to brag (okay, maybe just a little), but we just ranked #23 for free News Apps, beating The Washington Post, CNN, MSNBC, Bloomberg, and more. 🎉 If you want full access to our trading tools (including our "Insider Trade Tracker" to see where the smart money is moving in real time) just become a Stocks.News premium member. Ironically, it costs way less than a Bloomberg subscription. Or hey, no pressure… keep enjoying our articles as a free member. Your call. 😉

Stock.News does not have positions in companies mentioned.