Kobold AI Raises $537M After Copper Discovery

KoBold Metals Secures $537 Million in Series C Funding

KoBold Metals finalized a $537 million Series C funding round on Wednesday. This capital injection is intended to facilitate the construction of a large-scale mine, designed to extract a significant copper deposit identified through the application of artificial intelligence.

Expansion and Development Plans

The latest funding round was spearheaded by Durable Capital Partners and T. Rowe Price. These funds will be allocated to broadening the company’s exploration activities across five continents. A primary focus will be the development of a substantial copper deposit located in Zambia.

According to reports from the Financial Times, this funding round has elevated KoBold’s valuation to $2.96 billion.

Exceeding Fundraising Goals

The final closing of this funding round resulted in $10 million more capital than the company had initially anticipated. TechCrunch first exclusively reported on this fundraising effort back in October.

The Potential for Disruption in Mining

The mining industry is particularly well-suited for technological advancements. Historically, the industry has been characterized by high risk, with only approximately three out of every 1,000 potential deposits proving to be commercially viable.

Founded in 2018, KoBold Metals leverages AI to analyze extensive geological datasets. This approach aims to enhance the probability of discovering commercially successful deposits. The company’s decision to proceed with developing the Zambian resource, believed to be one of the largest discoveries to date, indicates the potential effectiveness of this strategy.

Geopolitical Significance of Critical Minerals

The importance of critical minerals has increased significantly in recent years, coinciding with growing tensions between the U.S. and China regarding supply chains. China has already implemented export restrictions on antimony, gallium, and germanium to the U.S.

Furthermore, China recently proposed limitations on technologies used for processing lithium and gallium.

Investors in the Round

A diverse group of investors participated in this funding round, including Andreessen Horowitz, Bond, Breakthrough Energy Ventures, Earthshot VC, Equinor, July Fund, Mitsubishi, Standard Investments, StepStone, and WCM Investment Management.

Notably, previous investors in KoBold Metals include prominent figures such as Bill Gates, Jeff Bezos, and Jack Ma.

Key Investors

• Durable Capital Partners
• T. Rowe Price
• Andreessen Horowitz
• Bond
• Breakthrough Energy Ventures