Emergency Briefing: Genesis Mission. What is it and what do you need to know?

I was going to publish an important essay for you today about a major innovation in the crypto markets.

But that will have to wait until later this week…

You see, the White House just dropped a market-shaking bomb on everyone, Manhattan Project-style impact and as investors in the market, it’s critical that you understand what it’s about, why it’s important, and to ensure you’ve got your portfolio in order, so you’re not left standing about while the market pumps again.

So, what on earth am I getting all worked up over?

A Manhattan-Project scale push into AI

The market has been punished in the last few weeks.

AI stock and anything high growth utterly obliterated. 40%, 50%, 60% down from highs only just a few months back.

This November pull-back in has rattled traders, shaken confidence to its core and prompted the usual chorus of “AI bubble” warnings from Wall Street and the mainstream.

The fear and greed index is deep into extreme fear.

But what do we know about the market, and in particular the US Administration that’s currently in power?

We know that over time, the market will revert to its normal pathway. We also know that President Trump will move heaven and earth to have the US markets pumping higher and harder than ever before.

He even said when he entered office for the second time that under this term, the market will do considerably better than his last term. And his last term saw something like an 80% rise in the major US indices over the term.

So… how long did you think it would be until the White House announced something big to quash the idea of an AI bubble?

I’ll tell you.

About two weeks.

Welcome to the White House’s new Genesis Mission.

This is an outright declaration that AI is now a critical national priority.

The order, which only released overnight, instructs the Department of Energy (DOE) to assemble a unified national AI infrastructure.

They describe the importance as, “comparable in urgency and ambition to the Manhattan Project…”

The mission looks to combine the country’s federal datasets, national laboratory supercomputers and a new secure cloud-based platform capable of hosting foundation models across defence, energy, manufacturing, biotechnology and quantum research.

In short, Washington wants an American AI backbone that looks and behaves like a central nervous system for the entire economy.

And you’ve got about 60 days to make sure you’re on board for it.

The DOE has 60 days to identify two dozen national-level scientific challenges and nine months to begin demonstrating early capabilities.

Combine that urgency with the private-sector’s own $500 billion Stargate initiative (the OpenAI-SoftBank-Oracle megaproject planning up to ten gigawatts of AI compute), and you quickly see how Genesis is going to be one of America’s largest growth engines for the next decade (at least).

I have no doubt this is a move to reassure the markets that there’s no such thing as an AI bubble.

And I believe it’s also payback for the likes of Amazon, Microsoft, Google and Meta for their “confidence” in the administration.

These hyperscalers dominate global cloud spending and have spent the last two years positioning themselves as indispensable to national AI efforts.

Only hours before the White House release, Amazon announced $50 billion to expand AI and supercomputing infrastructure for US government agencies.

You can’t tell me that’s a coincidence?

The rise of neoclouds

While hyperscalers like Amazon, Google, Meta and Microsoft remain the pillars of all this, the big opportunity and upside, I believe, sits with the neoclouds.

These are the GPU-laden, AI-compute players that emerged out of bitcoin and crypto mining, with critical hardware that’s now best suited to (and profitable from) AI compute.

CoreWeave, IREN, Cipher Mining, Nebius, these are just some that have seized on the AI-compute shortage. They figured out they can deliver compute at discounts and availability hyperscalers simply cannot match.

That’s why these relative minnows have become the go-to providers for OpenAI, Meta, Microsoft and dozens of AI model developers who need compute now, not in two years.

I saw an interview with Mark Zuckerberg just today that was asking why they’re so top heavy with their spending on AI right now. He said that if they map out a spending plan over five years and yet we get to AGI (artificial general intelligence) in three years, then suddenly they’re two years behind everyone else for one of the biggest economic opportunities of our lifetime.

It is a genuine race to AGI, and the big players want it now.

And so does the White House.

So, while the obvious play is Meta, Microsoft, Amazon, Google, Nvidia, it’s the neoclouds that are some of the most volatile stocks in the market but also some of the ones with the most potential.

Aside from the private demand for AI compute, add now a national demand for GPUs, high-bandwidth memory, networking and power systems, infrastructure and software and you get an instant and dramatic acceleration as America attempts to dominate the world with its AI ambitions.

The Genesis Mission will spark a rush of capital, in turn a wave of infrastructure, and as a result long-term winners in the market.

Hyperscalers will likely secure the biggest contracts. But they will lean on the neoclouds for compute and GPU supply. They will then look to new power and energy markets and infrastructure suppliers, to ensure they remain operational, online and reliable.

There is no AI bubble.

And the Gensis Mission confirms it.

Until next time,

Sam Volkering
Contributing Editor, Investor’s Daily