The U.S. government is launching the “Genesis Mission.” A project grandly compared to the Manhattan Project.
The purpose is to harness government resources and knowledge and build an AI-powered platform capable of advancing scientific and technological challenges. The announcement also mentions timelines:
| 60 days | The Department of Energy (DOE) is to identify and submit to the National Science and Technology Council (via APST) at least 20 science and technology challenges that are suitable in scope and significance for the mission. |
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| 90 days | DOE is to identify federal computing, storage, and network infrastructure resources, including DOE’s own systems, as well as resources from cloud services and industry partners. |
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| 120 days | DOE is to identify an initial set of data assets and modeling assets for the mission — including, for example, digitization, standardization, metadata, and provenance tracking; (ii) develop a plan for risk-based cybersecurity and dataset integration methods from federal research funding, other agencies, academic institutions, and approved private sector partners. |
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| 240 days | DOE is to review DOE’s national laboratory field and participating federal research institutions for capabilities in automated (robotic) laboratory operations and production facilities capable of AI-driven experimental work and manufacturing, including automated and AI-augmented workflows and associated technical and operational standards. |
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| 270 days | DOE is to, as appropriate and within existing appropriations, endeavor to demonstrate initial operating capability for the Platform for at least one identified national science and technology challenge. |
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| 1 year | First Report to the President: DOE is to publish a report to the President (via APST and the Office of Management and Budget) describing the operational status and capabilities related to the Platform, progress in integrating various laboratories, user and researcher collaboration, research outcomes (e.g., publications, prototypes), public and private sector partnerships, and identified needs for agency authorities or interagency cooperation. |
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Sounds mildly bullish on the AI theme. Cloud services and industry partner resources clearly point to hyperscalers. Could Oracle, CoreWeave, and similar companies still get an acceptable 7-8% return on capital for these investments? No information, but a good sign that the government is now eagerly looking for applications for AI.
Personally, I have started looking for sectors that will benefit in the next chapter. For example, energy production and the grid seem to constantly recur in discussions as the next bottleneck.
All alternative energy and infrastructure stocks have fallen in sympathy with AI stocks over the past week, but natural gas producers and service companies have remained surprisingly stable, which immediately makes me wonder if the “cold winter ahead” factor weighs more heavily on these stocks, meaning that AI-energy is not yet discounted into them → the sector could rise - or
does the market already consider this the next chapter → The market is probably right, but it doesn’t yet discount all returns because the sector doesn’t yet have significant growth. In any case, the risk/reward seems interesting.
I have also tried to find companies that benefit from the use of AI. It must be said that the results have been rather meager so far. For example, $RKT and $UWMC, also mentioned on the forum, might surprise when mortgage rates fall in the United States.
What interests me most are biotechs - somehow it seems intuitive that AI could lead to new molecular discoveries, etc. However, the easy returns have already been eaten up from the sector, as seen in the NASDAQ Biotechnology ETF. One would have to go into individual companies, which is challenging for a generalist. For years, I considered $MEDP’s large exposure to smaller pharmaceutical companies a weakness, but it has turned out to be a strength. That would be a pick-and-shovel stock if one believes that sector funding will grow even further. However, the company is already at its five-year valuation highs.
I have also started looking for companies in the field that are investing heavily in AI. $RXRX is a pharmaceutical company that has, from the outset, invested particularly in the use of AI in drug research. Apparently, Big Pharma supports the company in some way (I haven’t gone deeper than a surface scratch yet), but the cash situation looks challenging after 2026.
$BNTX is one of the COVID-19 vaccine manufacturers, and as a result, the company has vast cash reserves. Over half of its enterprise value is in cash. The company has made both organic and inorganic investments in AI. The company’s presentation on leveraging AI:
What particularly excites me about these companies is that their stock charts are declining or moving sideways. As an analogy; currently, the market favors the construction company building the house, but not the bankers using it who make the best money on the property. Certainly, the MAG7 will succeed in capturing at least some of the more capital-light side as well, but you get the point.
