Bill Gates, Ray Dalio And Jeff Bezos Are Banking On This AI-Enhanced Mining Firm To Take On China And Win

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Learning how to achieve success by studying the work of successful people who came before you can be an effective tactic, especially in the world of investing. That's why so many people closely watch and emulate the financial moves of tech titans like Bill Gates and Jeff Bezos. If you fall into that category, you may want to pay attention to Gates' and Bezos' investments in a mining outfit called KoBold Metals.

Mining is one of the oldest and most profitable businesses in the modern industrial world. After all, it was the gold and silver rush in California and Nevada that helped turn the Western U.S. into an economic powerhouse. Although precious metals are still incredibly valuable, the new "gold rush" in mining is for rare-earth metals like lithium and copper, which are essential in electric batteries and computer components.

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The continued development of AI superconductors, chips and even the raw power necessary to harness AI's potential depends on continued access to rare-earth metals. Unfortunately for many American-based AI companies and chipmakers, China controls the lion's share of the global supply. That gives it a huge advantage in sectors like AI and renewable energy, which look set to dominate the 21st century.

It's easy to see the potential risk to America's economy under that circumstance. A May 2024 White House statement announcing tariffs on these products explained, "China currently controls over 80% of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining. The concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk."

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KoBold seeks to upend China's advantage by putting AI to work. Mining is profitable, but also incredibly expensive. It's not uncommon for mining companies to spend tens of millions of dollars to get an active mine up and running and much of that work is done without a full picture of how much material (if any) there is to be mined. KoBold uses advanced AI techniques to make that process more efficient (and profitable).

KoBold CEO Kurt House expanded on his company's vision during an interview with Fortune Magazine. He said, "KoBold's mission is to expand and diversify the global supply of critical resources essential for prosperity, energy technology, AI and security." There is a pile of money to be made if KoBold can successfully use AI to access richer, deeper veins of rare-earth metals domestically.

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That's why heavy hitters like Jeff Bezos, Bill Gates and Ray Dalio invest heavily in KoBold. According to Fortune Magazine, KoBold's most recent round of series C funding raised $537 million, elevating the company's estimated value to nearly $3 billion. Donald Trump may be famous for his tough talk on tariffs, but the Biden Administration has already placed 25% tariffs on foreign-made Lithium-Ion batteries.

A domestic company that can lead in accessing these critical products has every opportunity to become one of the most successful companies in America or even the world. KoBold Metals isn't publicly traded yet, but it operates in a sector that will remain vital to the U.S. economy for decades. Watch for their IPO or other investment opportunities in this sector.

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