Kevin O’Leary is a Canadian serial entrepreneur and shark on “Shark Tank,” known recently as an advocate for green energy bitcoin mining company Bitzero. He’s calling on the US to take notes from Bitcoin miners to win a competitive edge in the ongoing and ever-changing “AI wars.” O’Leary emphasizes the convergence of Bitcoin mining and AI data centers, highlighting states like New York that are now recognizing the economic potential of these cutting-edge industries. He points out areas with plentiful, inexpensive energy resources, such as Alberta, Canada, as ideal locations for these projects. Concurrent with the praise, he cautions that protectionist trade measures threaten to weaken North American competitiveness.

O’Leary’s voice is exactly what’s needed at this moment. With the latest Bitcoin halving event increasing competition among miners, they are now turning to AI and cloud computing as new frontiers to make their fortunes. The surprising link between cryptocurrency mining operations and the bandwidth demands of AI data centers operations is fascinating Washington, D.C. policymakers. Institutional investors are quickly waking up to this fascinating intersection.

The Convergence of Bitcoin Mining and AI

O’Leary strongly underlines the growing relationship between Bitcoin mining and AI. He explains that often, both industries are relying on the exact same infrastructure, as well as energy requirements. This convergence is fueling a perfect storm for institutional investors to take advantage of the most favorable opportunities in the industry.

"Whether you’re talking about an AI data center or you’re talking about bitcoin mining. And now we are seeing that very often these projects are a bit of both" - Kevin O’Leary

The increasing need for computational power in both industries is creating a perfect storm of opportunity. Areas with plentiful and inexpensive energy supplies stand to benefit from this miscalculation.

O’Leary points to Alberta, Canada, as the poster child. He calls its huge stranded natural gas reserves a huge game changer. This dynamic has made the region a boomtown for firms. They're very motivated to establish both Bitcoin mining operations as well as AI data center operations here.

"Alberta, Canada is a good example because they have an abundance of low-cost, stranded natural gas" - Kevin O’Leary

States Recognize the Potential

O’Leary is convinced that many states in the U.S. are beginning to notice the economic benefits of luring Bitcoin mining. He’s encouraged, too, by the increasing focus on attracting AI companies. He observes further that these industries provide some of the best-paying jobs and constitute the leading edge of technological innovation.

"I think some states, like New York and others, have figured out these are high-paying jobs at the cutting edge of two new regulated industries, AI and bitcoin mining and crypto. And they feel that somehow they've missed out" - Kevin O’Leary

O’Leary indicates that New York state is on a real, determined campaigning mission to wrest back its competitive lead in these industries. He singles out West Virginia, North Dakota, Mississippi and Texas as places that might be more welcoming. Combined with their plentiful energy resources and business-friendly regulatory environments, they are natural attractive options.

China is aggressively expanding its AI infrastructure by building new coal-powered electrical plants weekly to support its AI development, despite environmental concerns. Energy and environmental impacts AI eats a lot of energy. As one illustrative scenario, a single ChatGPT request consumes at least 1000 times the electricity of a typical Google search, highlighting the enormous energy requirements of this technology.

Navigating the "AI Wars"

In O’Leary’s opinion, protectionist trade policies, especially a U.S.-Canada tariff war are “foolish.” He emphasizes the importance of North American collaboration to compete effectively against other global players, particularly China, in the "AI wars."

"We’re not just talking about bitcoin mining, this is about the competitiveness of nations" - Kevin O’Leary

O’Leary brings lessons learned from his own experience as an early investor in Bitzero. This company operates green energy powered Bitcoin mining and data centers across North America, Norway, and Finland. O’Leary’s vision is an important guiding star in the crypto and business communities. His vision and talent were key to CoinDesk receiving an honorable mention in SABEW’s 2020 Best in Business awards.