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At the intersection of society’s most cutting-edge technologies – artificial intelligence (AI) and nuclear power – could lie the future economic engine driving growth for decades to come. With an AI revolution unfolding, nuclear power could be the dark horse that powers technology server farms to their next phase of growth in the United States and beyond.
With over 100 million weekly users, OpenAI’s ChatGPT chatbot ignited the frenzy around generative AI. Companies have been jockeying for position to stay ahead of the chatbot pack ever since. Technology leaders, including Google (NASDAQ: GOOG), Facebook (NASDAQ: META), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT) and others are pouring tens of billions of dollars into AI to sustain soaring demand. The pace isn’t expected to slow anytime soon, as by 2025, corporations are predicted to direct $200 billion globally into generative AI technology, if not more, according to Goldman Sachs, as they continue to generate profits.
But for all of its potential, AI is nothing without efficient data centers – strategically located facilities that host the servers that power AI. Data centers are where the infrastructure required to train the sophisticated algorithms behind AI is housed. They consume massive amounts of power to do this. For example, AI-fueled searches command 10 times more energy than traditional internet searches, while demand is poised to double by 2030. Rene Haas, CEO of semiconductor maker ARM Holdings (NASDAQ: ARM), believes that by 2030, artificial intelligence could consume 25% of U.S. electricity.
ChatGPT’s estimated 180 million+ users underscore this rising demand. As countries around the world race to reduce emissions to meet net zero targets, this energy consumption is raising concerns among many.
In response, clean power sources have been thrust into the spotlight as entire countries scramble to meet the rising electricity demand generated by the growth of AI on top of existing consumption. What makes nuclear power an attractive option for power generation is its ability to generate more electricity on less land compared with any other clean energy source, including wind turbines and solar panels.
To meet the rising energy demand sustainably, companies like Vancouver, BC-based Panther Minerals (OTC: GLIOF) (CSE: PURR) (FSE: 2BC) are engaged in the exploration and development of uranium, the key fuel required for the production of nuclear energy. As a result, Panther could be uniquely positioned to ride the AI data center wave for years to come.
Could Nuclear Power And AI Data Centers Go Hand In Hand?
Fortunately, there’s no shortage of nuclear power, which is second only to the production of hydropower in the United States, the biggest producer of nuclear power on the planet. However, the U.S. also sources the lion’s share of uranium, a key ingredient in nuclear power generation, from imports, roughly half of which originates from geopolitically unstable regions of the world like Russia, Kazakhstan and Uzbekistan.
Panther Minerals seeks to onshore supply – its flagship project is a district-scale uranium exploration and development initiative in Western Alaska. Originally discovered in the 1970s, the Boulder Creek Deposit is the most northerly known sandstone-type property in the world that, based on historical non-NI 43-101 compliant drilling results, may contain viable amounts of uranium for exploitation.
Exploration in this field has been paused for the better part of two decades until now. Since then, a consolidation of mining districts near Boulder Creek has bolstered the entire land package by approximately 75 times to over 9,000 hectares. Following a reevaluation of geological data, Panther Minerals believes there’s significant potential for uranium extraction on this property, given innovations in drilling techniques. Panther plans to also leverage the millions of dollars that have historically been invested in exploration in this field, setting the stage for large-scale exploration of uranium.
Earlier this year, Panther expanded its footprint on the Boulder Creek property, including an option to purchase 100% ownership interest in the Boulder Creek property. Most recently, the company initiated satellite imagery over the uranium field. The survey will provide key insights about the potential of the deposit ahead of the phase one work program starting this summer.
Panther is far from alone in its pursuit of uranium exploration. Generative AI pioneer Sam Altman, who is at the helm of OpenAI, is similarly bullish on the role of nuclear power in the powering of data centers to advance AI technologies. His vision involves the use of fission reactors for the deployment of clean energy to deliver electricity to AI data centers around the world. In line with that, Altman secured his other company, a startup named Oklo, to deliver 100 MW of energy to data center company Wyoming Hyperscale.
Uranium Demand On The Rise
Global uranium demand is forecasted to continue to rise, The World Nuclear Association’s 2023 Nuclear Fuel Report’s Reference Scenario shows a 28% increase in uranium demand over 2023-30 (for an 18% increase in reactor capacity, indicating many new cores will be required). Furthermore, while demand is expected to constantly grow till 2035, supply is expected to drop over time, according to a 2021 report from Statista, which forecasted that new assets will be required to fill the supply gap. Small wonder, then, that uranium prices hit a 16-year high earlier this year on the back of supply concerns from Kazakhstan.
American uranium developers currently also have regulatory winds in their sails. Earlier this year, the Biden Administration passed the Prohibiting Russian Uranium Imports Act, which, as the name suggests, blocks the importation of this fuel from Russia. Instead, the U.S. government is advocating for the expansion of domestic uranium enrichment, an opportunity for which companies like Panther Minerals are preparing. Earlier this year, the federal government also said it would provide a $1.5 billion loan to restart a nuclear power plant in southwestern Michigan last month – a potential customer for Panther Minerals.
As such, Panther Minerals may not only be positioned to benefit from the rising demand for uranium for nuclear power generation but also to bring the United States closer once again to energy independence. Investors who want to participate in this exciting juncture for generative AI may want to consider gaining exposure through uranium exploration companies like Panther Minerals, who hope to be a catalyst in adding domestic uranium supply for AI data center growth in the U.S. market and beyond.
Disclaimer: Panther Minerals Inc. has paid for and sponsored this coverage. Omni8 Communications Inc. has been paid CAD$125,000 plus GST to provide online advertisement coverage for Panther Minerals Inc. (“Panther Minerals”) for two months beginning June 1rst 2024. The coverage includes, but is not limited to, digital and social media marketing, online advertisements, and content distribution about Panther Minerals. We (Omni8 communications Inc.) do not own shares of Panther Minerals. Because Panther Minerals has paid us for our online marketing and advertising services, and we (Omni8 Communications Inc.) are compensated by the Company, you must recognize the inherent conflict of interest involved that may influence our perspective of Panther Minerals. Because we are paid by Panther Minerals, and therefore we are not independent reporters, our coverage of Panther Minerals may highlight many of its positive aspects, and not necessarily the potential risks to its business or to investing in its stock.
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