- Silicon Valley–based mining disrupter KoBold Metals has raised a further $537 million in funding, with investors Bill Gates and Jeff Bezos now being joined by backers like Andreessen Horowitz.
Marc Andreessen and Reid Hoffman are among the list of billionaire backers rallying behind AI-powered mining prospect KoBold, with the brand now valued at nearly $3 billion.
KoBold already boasts Microsoft cofounder Bill Gates and Amazon founder Jeff Bezos among its high-profile investors, but courtesy of a recent round of Series C funding has added a further $537 million to its coffers, bringing it to a valuation of $2.96 billion.
It’s perhaps no surprise that the business is catching the eye of the Silicon Valley elite.
Not only is the mining company—now six years old—using everybody’s favorite technology, AI, to accelerate the discovery of precious metals, but it’s also increasing the supply of these hotly contested materials.
The Californian unicorn is hunting for critical minerals like copper and lithium, materials needed for the likes of electric vehicle batteries and the data centers required to power the artificial intelligence boom.
However, vast amounts of the world’s supply of these materials come from China—a rival nation that incoming president Donald Trump has vowed to confront toughly.
President Biden has already introduced several policies aimed at rebalancing power when it comes to critical materials needed to power emerging and green technologies.
In May last year, the White House said: “China currently controls over 80% of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining.
“Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk.”
As a result, the Democratic commander in chief announced a tariff increase from 7.5% to 25% on lithium-ion batteries, and an increase from zero to 25% on other critical minerals.
Balancing this supply is one of the goals of KoBold, CEO Kurt House told Fortune in a statement: “KoBold’s mission is to expand and diversify the global supply of critical resources essential for prosperity, energy technology, AI, and security.
“Partnering with this broad set of world-class investors will accelerate our progress.”
The aforementioned world-class investors come in part from the support of Breakthrough Energy, founded by billionaire philanthropist Gates, which had previously backed KoBold but invested once again in the Series C round.
Among the investors in Breakthrough are Bezos, as well as media tycoon Michael Bloomberg, Bridgewater Associates founder Ray Dalio, LinkedIn cofounder Reid Hoffman, and chairman of Reliance Industries Mukesh Ambani.
Others who pumped further funding into KoBold include Andreessen Horowitz, the Silicon Valley VC firm that has fueled many of America’s most notable startups; new investor Durable Capital Partners; and a pair of T. Rowe Price funds that have not yet invested.
“KoBold shows how the combination of scientific excellence and AI can enable the discovery of critical metals for the global energy transition. KoBold’s team, technology, and approach to exploration position them to be the leading innovators in the mining industry for years to come,” said Henry Ellenbogen, managing partner and chief investment officer at Durable Capital Partners, in a statement shared with Fortune.
How does KoBold work?
KoBold has developed two platforms powered by AI that inform the areas in which it mines.
The first is TerraShed, which analyzes more than 100 years’ worth of public and private data information to create visualizations, which are then fed to the company’s second platform—Machine Prospector—which helps inform where previously unknown mineral deposits might be found.
KoBold has had success with this method: Last February it confirmed it had discovered a massive copper deposit in Zambia.
KoBold president Josh Goldman said at the time the deposit is “extraordinary,” adding: “It’s going to be one of the highest grade, large underground mines.”
