KoBold Metals, a mining company that’s powered by artificial intelligence (AI) and backed by Bill Gates and Jeff Bezos, has raised US$537 million in equity funding to accelerate its search for critical minerals.
The firm is looking to position itself as a key player in efforts to diversify global supply chains dominated by China.
The latest investment round values the Silicon Valley-based company at US$2.96 billion.
It also brings new support to KoBold from Durable Capital Partners and two T. Rowe Price funds; they join existing backers like Andreessen Horowitz and Gates’ Breakthrough Energy Ventures.
The capital infusion will support KoBold’s efforts to locate and develop deposits of minerals like copper, lithium and nickel, which are vital for electric vehicles, renewable energy technology and data infrastructure. Its exploration projects focus on regions with high potential for minerals needed to meet increasing demand for clean energy resources.
Founded in 2018, KoBold operates by integrating machine-learning algorithms with geological data to enhance the accuracy and efficiency of mineral discovery. Its proprietary platforms, TerraShed and Machine Prospector, analyze historical and current geological data to identify and prioritize drilling targets.
This approach aims to reduce the time and costs associated with traditional mineral exploration.
“KoBold’s mission is to expand and diversify the global supply of critical resources essential for prosperity, energy technology, AI, and security,” KoBold CEO Kurt House told Fortune on Thursday (January 2).
The funding comes amid growing global competition for control over critical minerals supply chains.
Currently, China dominates the processing and supply of materials like lithium and copper, both essential for battery production and renewable energy storage. Over the past year, the US government has responded by introducing policies to counterbalance China’s market share, such as tariffs and incentives for domestic critical minerals production.
As mentioned, KoBold’s investors include prominent figures from technology and finance sectors.
Breakthrough Energy Ventures, founded by Gates, aims to support technologies that drive the transition to sustainable energy. Michael Bloomberg and Ray Dalio are also among the venture’s backers, along with Bezos.
New investor Durable Capital Partners joined the Series C funding round, with managing partner Henry Ellenbogen expressing confidence in KoBold’s technology-driven exploration model.
KoBold’s recent discoveries are seen propelling the potential of AI-driven exploration.
Last February, the company announced the discovery of a significant copper deposit at its Mingomba project in Zambia.
The deposit is considered one of the largest high-grade copper discoveries in recent years, signaling the effectiveness of KoBold’s machine-learning techniques in mineral exploration.
The new capital raised this week will be allocated in part toward further exploration and development at Mingomba, where KoBold plans to advance drilling and feasibility studies.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.