Climate Innovation and Investment in Generative Science Technologies

Long-term investors focus on breakthrough technologies to address climate challenges, leveraging AI for scientific advancements.

### Long-Term Investment Strategies in Climate Technology Amidst Political Changes
* 🌍 As long-term investors, venture capitalists focus on **building companies over a span of 12 to 15 years**, which often encompasses **multiple presidential administrations**, minimizing the impact of political shifts on their strategies.
* 🔋 The need for innovation in climate technology is pressing, particularly for advancements in **battery technologies and renewable energy sources** to power essential infrastructures like **data centers**.
* 🤖 The concept of **generative science** is gaining traction, where AI is utilized to **address complex scientific problems** by training models in chemistry, biology, and physics to **generate breakthroughs**.
* 📈 Despite concerns about potential political reversals, the Inflation Reduction Act has already allocated over **$200 billion**, with **$165 billion going to red states**, indicating a **growing market for green jobs** in traditionally conservative areas.
* ⚡ The emergence of new electric battery and vehicle plants in states like Georgia and North Carolina exemplifies the **positive impact of climate investments**, creating **jobs and opportunities** in these regions.
* 🔬 Nuclear energy is experiencing a renaissance among investors and environmentalists alike, as it is **crucial for meeting the increased demand for clean energy** to support electric vehicles and data centers.
* 🌋 Alongside nuclear, geothermal energy is also being prioritized for investment, as both are **essential for achieving the goal of doubling the number of electrons in the U.S. energy grid sustainably**.

When you do see potentially a new administration coming in that doesn't seem to be as pro-climate change avoidance as the current administration, what does that mean in terms of your thesis? Sometimes you're investing in this space. Well, first and foremost, we're long-term investors. I think all of venture capital is an industry where we'll spend sometimes 12 or 15 years building a company before it reaches the public markets. That's three presidential administrations. So we worry less about what's going to happen in one administration or another. We try to focus more on bringing these breakthrough technologies to market. Some of the ones that have backed that we all know about, Beyond Meat, for example, there are multiple rounds there. What is the new area of innovation in climate change, and how is it being spearheaded from a generative perspective, for example? Well, with climate, there's a lot of unsolved problems. We need better battery technologies. We

need more renewable energy to power all of our air data centers. And the thing that we're excited about is using AI to solve these unsolvable problems. We call it generative science, and it's an idea of instead of using large language models trained on the Internet, we're backing teams that are building large science models, trained in areas like chemistry, biology, and physics. And those generative science A.I. systems can actually output or generate new scientific breakthroughs. James I was writing this morning in the Tech daily newsletter about the idea that there are lots of venture capitalists that backed Harris because they felt she was the better candidate in the context of climate, the work of the Inflation Reduction Act. But there are others out there that basically see staying power. They would cite data on installation, still capacity of renewable energy sources, the hiring in those fields. You said you're a long-term investor. How closely would you track those

datasets over the next four years? Well, there's a lot to be optimistic about with climate, and particularly with the Inflation Reduction Act. There's a lot of fear and uncertainty that that Trump 2.0 administration is going to somehow repeal that. And I share those concerns. However, there's data to be optimistic. If we look at the 200 plus billion that has already been deployed out to states, 165 billion have gone to red states. So more than three times what blue states have received. That means in states like Georgia and North Carolina and Tennessee, we have new electric battery and electric vehicle plants coming online. That's good green jobs in red states. That's Christmas for climate tech. James, how focused should everyone be on nuclear and how important is it for you? It's funny, nuclear has really had a change of heart, I think, with investors and with environmentalists. As we look at the needs of our energy

grid. We're going to have to double the number of electrons in the US grid to power electric vehicles and Bitcoin mining and data centers. And obviously, we want those electrons to be green. We don't want more coal plants; we don't want more natural gas plants. And so, to deliver that much power, we need, I think, two big areas. One is geothermal, which we're investing in, and the other is nuclear.

Climate Change Investing Under Trump 2.0

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Long-Term Investing in Climate Change Innovation

The venture capital industry focuses on long-term investments, often spanning 12 to 15 years, which allows them to weather changes in presidential administrations.

The key areas of innovation in climate change include better battery technologies and renewable energy, with a focus on using AI for generative science to solve unsolved problems.

Venture capitalists are backing teams that build large science models in chemistry, biology, and physics to generate new scientific breakthroughs.

Optimism for Climate Data and Nuclear Energy

There is optimism for climate initiatives due to the Inflation Reduction Act, with over $200 billion already deployed, primarily to red states.

This funding is driving the establishment of electric battery and vehicle plants in states like Georgia, North Carolina, and Tennessee, creating green jobs.

Nuclear energy is gaining attention from investors and environmentalists, highlighting its importance in meeting energy needs.

Doubling Electrons for a Sustainable US Grid

To power electric vehicles, Bitcoin mining, and data centers, the US grid needs to double its electron output.

The focus is on green energy, avoiding coal and natural gas plants.

The two main areas for delivering this power are geothermal and nuclear energy, both of which are being invested in.