Summary
Kevin O’Leary, the well-known investor from the television show Shark Tank, recently shared the career path he would take if he were 25 years old today. At 71, the chairman of O’Leary Ventures believes that artificial intelligence (AI) offers the best chance for young people to build wealth. He identified two specific areas within the AI industry that he thinks are ready for massive growth: helping small businesses use AI tools and developing the data centers that power the technology. O’Leary suggests that focusing on the practical side of AI is the smartest move for new entrepreneurs.
Main Impact
The rise of artificial intelligence is changing how every part of the economy works. While many people focus on the software itself, O’Leary points out that there is a huge gap in how that software is used and where it is stored. By focusing on these "pain points," young workers can find opportunities that larger companies might overlook. This shift in focus from creating AI to supporting AI could create a new wave of successful business owners who provide the foundation for the future economy.
Key Details
What Happened
In a recent video, Kevin O’Leary explained that if he were starting over, he would not try to compete with the biggest tech companies. Instead, he would look for ways to help the millions of small businesses that are currently struggling to keep up with tech changes. He also highlighted the physical side of the internet, known as data centers, as a major area for investment. He believes the demand for these facilities is much higher than the current supply.
Important Numbers and Facts
O’Leary shared several key figures to support his views on the AI market:
- There are about 36 million small businesses in the United States with fewer than 500 employees.
- These small businesses produce nearly half of the country's total economic output (GDP).
- Currently, only about 5 gigawatts of data center capacity is being built, but the world needs much more.
- Big tech companies like Amazon and Microsoft are spending nearly $400 billion every year on infrastructure.
- Experts predict that the demand for power to run data centers will grow by 165% by the year 2030.
Background and Context
Artificial intelligence requires two main things to work: smart computer code and powerful physical hardware. While many people talk about the code, the hardware side is often forgotten. Data centers are large buildings filled with thousands of computers that process information. These buildings need a lot of land and a massive amount of electricity to stay cool and keep running. Because AI uses so much more power than regular internet searching, the world needs to build many more of these centers quickly.
On the business side, small companies often lack the money or the staff to figure out how AI can help them. While a giant corporation might have a whole department for new technology, a local shop or a small factory does not. This creates a job for people who can go into these businesses and set up AI systems for them. O’Leary calls this "implementation and execution," which means actually doing the work rather than just giving advice.
Public or Industry Reaction
Large financial groups like Goldman Sachs and Morgan Stanley agree with O’Leary’s view on data centers. They have released reports showing that the need for AI infrastructure is growing faster than almost any other part of the economy. However, some of O’Leary’s own projects have faced questions. For example, he is involved in a $70 billion data center project in Canada that has seen some delays. Despite these challenges, the general feeling in the tech industry is that the demand for AI power is "insatiable," meaning it cannot be easily satisfied.
What This Means Going Forward
For young professionals and entrepreneurs, this advice suggests a move away from traditional office jobs like consulting. O’Leary has been vocal about his dislike for consulting, calling it a path to being average. He encourages the younger generation to get their hands dirty by building physical projects or solving direct problems for business owners. As AI continues to grow, the people who control the buildings where AI lives and the people who know how to set it up will likely hold a lot of power in the market.
Final Take
Success in the modern economy often comes down to finding what people need but cannot easily get. Right now, small businesses need a way to use new technology without getting overwhelmed, and the tech world needs more physical space to run its programs. By focusing on these two areas, O’Leary believes a new generation can find the same level of success he achieved during his long career. It is not about the flashiest new app, but about the hard work of building the systems that make everything else possible.
Frequently Asked Questions
Why does Kevin O’Leary focus on small businesses?
Small businesses make up a huge part of the economy but often don't have the experts needed to use new technology. This creates a big opportunity for people who can help them set up AI tools to save time and money.
What is a data center?
A data center is a large building that holds many computer systems and servers. These centers are necessary to process the massive amounts of data used by artificial intelligence and the internet.
Why is there a shortage of data centers?
Building data centers takes a lot of time, land, and access to huge amounts of electricity. The demand for AI has grown so fast that construction companies cannot keep up with how much computer power is needed.