From Transitional To Foundational Market
As I write this, the AI landscape is developing with many public-private partnerships. The thing with AI, as a computational layer on top, contrary to the web, which imbued, thus made information accessible, at scale, this current AI paradigm is about making intelligence available at scale.
And everyone wants to be on top of it.
Indeed, France has announced a massive AI plan spanning the whole supply chain of AI in a timely manner (I’ll cover that in a specific issue).
French President Emmanuel Macron announced a €109 billion ($112 billion) AI investment package to position France as a regional leader in AI.
This investment is comparable to the US Stargate Project, with France focusing on AI data centers.
Major investors include the UAE, Brookfield, Bpifrance, and Iliad, totaling up to €83B ($85B).
Macron highlighted Mistral's plans to build an AI cluster in Essonne, France, and emphasized the country's low-carbon nuclear energy advantage (nuclear-powered).
France will pledge 1 gigawatt of nuclear power for AI training by 2026, leveraging its energy surplus to attract investments.
For context, to fully understand the scale, 1 gigawatt can power approximately 700,000 to 1 million homes for one hour, depending on their average energy consumption.
That goes back to what I’ve covered in the weekly when it comes to the foundational AI ecosystem,
When it comes to the foundational stack, you must move up and down it and ensure you have the energy requirements to power the full stuck, which is energy-intensive.
To clarify, this energy consumption will be inefficient in the short term. But in the longer run, as the market consolidates, more and more money in the foundational stack will go toward energy.
In short, at this stage, as the foundational stack still has massive potential in terms of scaling that up between hardware, software, and foundational layers, most capital goes there.
However, within the next decade, as the market matures, more and more will go not only toward energy generation but also transmission, distribution, storage, grid management, and so forth.
Back to the foundational market.