Fred Wilson, co-founder of venture firm Union Square Ventures, says the simplest bet on AI is energy, not tech stocks. After all, natural gas powers most new AI data centers, yet its price has barely moved.
That gap is now sparking debate online. Chip stocks have slumped this month, while the fuel behind the AI buildout still trades near its long-run range.
Why Investors Call Energy the Easier Bet on AI
Wilson made the case in a short clip shared on X.
“If you really want just a simple way to bet on AI and not have to think about all this other stuff, just bet on energy,” Fred Wilson said on X
One investor pushed the idea further. He said copper and power give traders cheap AI exposure, with deep markets and leverage. Still, he added that almost nobody cares.
In fact, copper has set record highs in 2026. Its supply is also tightening as AI demand squeezes copper. Still, softer industrial data from China, the largest copper buyer, has weighed on copper demand.
Tech, by contrast, has struggled. Chip stocks posted eight straight losing days last week, and Goldman named defensive stocks for nervous investors.
What Cheap Natural Gas Means for Investors
Funny that basically all AI data centers are being run on natural gas but the cost of NG has been mostly flat or down. $UNL
— Nikita Bier (@nikitabier) October 21, 2026
Nikita Bier, the former head of product at X, raised a related point. He noted that gas runs almost every AI data center, yet its price stayed flat or fell.
The first part is largely true. The US has 1,391 operating data centers, and 2,819 more are planned. Gas makes up nearly 75% of planned on-site US data center power. Nuclear, fuel cells, and batteries supply the rest, giving investors other ways into the same trade.
However, the chart in the post needs context. The United States 12 Month Natural Gas Fund (UNL) holds futures contracts. Rolling those contracts adds costs, so the fund has fallen far more than gas itself.
Meanwhile, the US benchmark, Henry Hub, mostly stayed between $2 and $4 per million British thermal units (MMBtu) last decade. Looking ahead, Wood Mackenzie expects it near $5 by 2035 as power demand climbs, World Oil reports.
Therefore, that forecast is the real test for anyone seeking a bet on AI outside tech stocks. The fight for cheap power is also reshaping Bitcoin mining cost math. If gas prices rise, energy producers could capture a larger share of AI spending than chipmakers do today.
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