“Shark Tank” investor Kevin O’Leary says the outcome of the global artificial intelligence race will not be determined by AI hardware or code.
In a new video posted on X, the investor, also known as Mr. Wonderful, says he would bet on one hard asset above everything else amid the massive AI buildout.
“Well, I would not change anything in the past, but if I were sent back in time without a penny in my pocket, I would still be an entrepreneur because I prefer to control my destiny. I would take a look at today’s landscape and what I would be doing is buying land where I can build power.”
O’Leary says investors are focusing on the wrong part of the AI stack.
“You know, I kind of reverse engineer what is happening in the economy. The largest CapEx spend in history is occurring now around data centers, but it is not really about the data centers or about AI. It is about power.”
He says cheap, secure energy will decide which countries lead in artificial intelligence.
“The country that has the most secure power at the lowest cost is going to win in AI.”
According to O’Leary, AI is now embedded in every part of the economy, and all of it sits on top of enormous energy requirements.
“AI requires a tremendous amount of power, whether it is for defense or whether it is for any of the sectors of the economy. Every single sector is using AI as a tool now to reduce costs and enhance margins, but they cannot do it without power.”
He says his investment thesis focused on buying land for new power plants would generate handsome returns over the next two decades.
“I would want to skate to where the puck is going, and that is land that is permitted for power generation. That is one of my big investment theses right now. It is one of the areas that I am spending most of my time on because I think that will provide extraordinary returns for the next 20 years.”
Last week, O’Leary warned that China is way ahead in electricity generation due to its ability to build new power plants without delay.
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