Tony Blumberg says AI is entering its industrial age

At the Allen & Company Sun Valley Conference in Idaho, investor Tony Blumberg argues artificial intelligence is shifting from a software story to a physical infrastructure story. He says the next phase of AI growth will hinge on electricity, transmission, data centers and critical minerals such as copper and rare earths.

Why it matters: - AI growth is increasingly constrained by physical inputs, not just model quality or computing power. - That shift could redirect capital toward mining, energy, transmission and data-center buildouts. - Blumberg says those constraints will shape the pace and geography of AI development worldwide.

What happened: - Tony Blumberg, head of the Blumberg Family Office, is returning to the invitation-only Allen & Company Sun Valley Conference in Idaho. - Blumberg says artificial intelligence has entered its "industrial age" or "industrial phase." - He argues the next stage of AI will depend on critical minerals, energy systems and physical infrastructure at global scale. - Blumberg says the first chapter of AI belonged to software, while the next chapter will be written in copper, energy and critical minerals.

The details: - Blumberg's investment background spans more than three decades across mining, natural resources, infrastructure and long-duration capital allocation. - He says the key bottleneck is now electricity, transmission capacity and the minerals needed to build and power hyperscale computing infrastructure. - AI models can be developed in months, but the physical systems that support them often take years or even decades to permit, finance and construct. - Critical minerals, copper, rare earth elements, electricity generation, transmission capacity and data-centre infrastructure are becoming strategic foundations for AI. - Blumberg says every model, every data centre and every computation depends on materials that must be mined, processed and delivered through industrial systems. - The conference is a private forum where leaders in technology, finance, investment and media gather to discuss forces reshaping the global economy. - Blumberg expects Sun Valley conversations to increasingly focus on the physical foundations needed to support the next generation of AI.

Between the lines: - The message reframes AI as an industrial supply-chain story, not only a software race. - That view implies a broader set of winners and bottlenecks, including utilities, miners, transmission builders and infrastructure investors. - Blumberg says the investment implications of this transition are only beginning to be recognized.

What's next: - As governments, technology companies and investors expand AI capacity, demand for energy, infrastructure and critical minerals is likely to remain a central issue. - The next phase of AI investment may increasingly follow the availability of power and materials rather than software breakthroughs alone. - Blumberg's family office will continue focusing on mining, natural resources, infrastructure, technology and long-duration strategic assets.

The bottom line: - AI's next growth spurt may be decided as much by copper, power and permitting as by code.