| |NOVEMBER 20248IN MY OPINIONAI AND MATERIALS FUEL CLEAN ENERGY REVOLUTIONAI AND MATERIALS FUEL CLEAN ENERGY REVOLUTIONBy John Frankel, Founding Partner, ff Venture CapitalThrough this article, John Frankel, founding partner at ff Venture Capital, discusses how recent advancements in materials and AI are driving a rapid clean energy transition. He highlights the expected surge in energy sector investments and underscores the importance of energy efficiency innovations. Frankel predicts a new investment wave focused on enhancing efficiency through AI, offering significant opportunities for growth.Multiple forces, including climate change concerns and government mandates, have created significant investment opportunities in the eco-renewable sector over the past few decades. Though there have been significant advancements in this sector until now, with the recent rapid advancement of materials technologies and AI capabilities, we are on the doorstep of substantial innovation and impact on a global scale. This time, much of the investment is less capital-intensive and more software-intensive.Energy remains the most significant industry sector, generating over $6tn in revenue annually. McKinsey forecasts that investment in this sector will rise sharply from $1.5 trillion today to $3.2 trillion by 2040. Certain emerging AI technologies within this vast energy space, which are not yet widely known, can provide significant advantages and impacts for innovative eco-renewable companies. In addition, the energy demands from the deployment of AI are changing the industry's long-term demand assumptions, forcing a rapid change in generation and transmission across the USA.John Frankel
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