Shomik Ghosh from On The Frontier·Sunday, April 12, 2026·7 min readAI

We Are Not Hard Tech Pilled Enough

The intersection of AI and critical raw materials presents a unique investment opportunity as energy and material shortages become significant bottlenecks for technological advancement.

The newsletter emphasizes the critical bottlenecks facing AI development, particularly in energy and raw materials, which are essential for powering technological advancements. With the current geopolitical landscape creating significant supply chain challenges, there is an urgent need for investments in these sectors. The shift in market dynamics, where emerging markets are outperforming the US, suggests a broader trend that VCs should capitalize on by focusing on companies that are positioned to thrive amidst these changes. The rising defense spending globally further underscores the importance of securing access to these critical resources.

Key Takeaways

  • AI's growth is constrained by physical bottlenecks in energy and materials, highlighting a mismatch in market cap allocations.
  • Emerging markets are outperforming the US, particularly in sectors tied to AI and commodities, indicating a global shift in investment focus.
  • Geopolitical tensions are increasing the urgency for investments in energy and raw materials, as supply chains become more localized and nationalistic.
AIEnergyMaterialsGeopoliticsDefense