Energy Is the Simple AI Wager, VCs Say

Fred Wilson, a co-founder at Union Square Ventures, has argued that the most straightforward wager on artificial intelligence is a bet on energy, rather than on technology equities. Natural gas provides the power for the majority of new AI data centers, he noted, yet its price has seen little movement. The discrepancy has started an online discussion. Chip-focused shares have declined this month, while the energy source sustaining the AI construction boom continues trading near its typical historical range.

Energy Seen as the Simpler AI Wager by Market Participants

Wilson outlined his position in a concise video posted to X.

“If you really want just a simple way to bet on AI and not have to think about all this other stuff, just bet on energy,” Fred Wilson said on X

A separate investor expanded on the theme. Copper and electricity, according to him, offer traders inexpensive leverage into the AI space, supported by deep liquidity. He did note, however, that the strategy attracts very little attention.

The metal copper has indeed reached new records during 2026. Supply constraints are growing as AI-related needs put pressure on available copper stock. Despite this, sluggish industrial indicators from China, which is the principal purchaser of copper globally, have applied downward pressure on demand.

Technology equities, conversely, have faced difficulties. Semiconductor shares experienced eight consecutive days of decline last week. Goldman Sachs responded by identifying defensive stock picks for cautious market participants.

Implications of Low-Cost Natural Gas for the Investment Landscape

Funny that basically all AI data centers are being run on natural gas but the cost of NG has been mostly flat or down. $UNL

— Nikita Bier (@nikitabier) October 21, 2026

Nikita Bier, previously the head of product at X, flagged a similar observation. He remarked that gas powers almost every AI data center, though its price has remained static or declined.

Bier's first claim holds generally true. There are currently 1,391 active data centers in the US, with a further 2,819 in the planning stages. Natural gas constitutes approximately three-quarters of the planned on-site power generation for these US facilities. The remaining portion is covered by nuclear power, fuel cells, and battery storage, offering alternative access points into this sector for investors.

A further nuance involves the United States 12 Month Natural Gas Fund (UNL). This instrument holds futures contracts, and the costs of rolling those contracts over have caused it to decline much more sharply than the underlying natural gas commodity.

The benchmark price in the US, Henry Hub, has largely traded in a range of $2 to $4 per million British thermal units (MMBtu) over the past ten years. Projecting forward, Wood Mackenzie forecasts it approaching $5 by 2035, driven by increasing power requirements, as covered by World Oil.

That future price projection forms the central question for investors looking for an AI wager beyond semiconductor stocks. The competition for low-cost electricity is simultaneously altering the cost calculations for Bitcoin mining. Should natural gas prices increase, energy companies could potentially secure a greater portion of AI-related expenditure than chip manufacturers currently hold.