In a recent discussion, Kevin O'Leary, the 71-year-old star of Shark Tank and chairman of O’Leary Ventures, shared insights into what he would prioritize if he were starting his career at 25. He emphasized the burgeoning field of artificial intelligence (AI) as a prime area for growth, stating that he believes the advancement of AI will see exponential increases in the coming years.
O’Leary highlighted two specific avenues within the AI sector that he finds particularly promising. His first focus would be on aiding small businesses with the integration of AI tools. With approximately 36 million small enterprises in the United States comprising nearly half of the country's GDP, there exists a significant opportunity. Many of these businesses are eager to adopt AI solutions but may struggle with the transition, giving motivated entrepreneurs a chance to assist them in improving data management and analytical capabilities.
"There’s going to be a massive number of potential users who don’t know how to utilize AI effectively, and they are prepared to invest in resolving that issue," O’Leary remarked. He emphasized that this venture would differ from conventional consulting by concentrating more on implementation and execution strategies.
O’Leary’s second focus centers around the development of data centers, acknowledging that while this area may require greater financial investment and effort, it presents substantial opportunities as well. He noted that the demand for AI infrastructure, particularly data centers, far exceeds current supply. With only about 5 gigawatts of capacity being built, and an overwhelming demand for more resources, he sees a clear business opportunity.
"The demand is insatiable," O’Leary commented, underscoring the urgency in addressing this gap. Drawing on his experience in real estate, he has already supported a $70 billion data center project in Alberta, Canada, capable of generating 7.5 gigawatts of power, despite facing some criticisms due to delays. Similarly, he is involved in a $100 billion data center initiative in Utah, which is also under scrutiny for its potential community impact.
Supporting the necessity for data centers, a report from Goldman Sachs Research predicts that AI's growing usage will escalate data center power requirements by 165% by the end of the decade. Major companies like Amazon, Microsoft, and Google are investing billions into their data center infrastructures, with annual spending close to $400 billion according to Morgan Stanley Wealth Management’s chief investment officer, Lisa Shallet.
In O'Leary's view, both of these opportunities in the AI landscape—facilitating small business AI implementation and pursuing data center development—are crucial to establishing the framework required for a thriving AI economy. Though these ideas might not generate the excitement of a typical Shark Tank pitch, he believes they hold the potential for wealth creation for aspiring entrepreneurs looking to make a mark in the industry.
