Artificial intelligence has quickly grown from a far-fetched concept to reality and is now part of every aspect of our lives. Estimates suggest that the AI market is set to grow from just $86 billion in 2022 to $407 billion by 2027. But amid all the buzz around AI, there is a key component driving this technological revolution: precious metals.
When we think of AI, the focus is often on complex algorithms and data, but it's precious metals like gold, silver and platinum that quietly power the hardware that underpins AI's incredible feats – without them, these cutting-edge technologies would be nothing more than a dream.
But how are these precious metals enabling the AI revolution? Why are they useful in the development and deployment of AI systems?
Unique Properties of Precious Metals
Precious metals like gold, silver and platinum offer a unique combination of properties that are essential for AI and advanced computing technologies, including:
- Excellent Conductivity: Gold and silver are among the metals with the best electrical conductivity. This property is crucial for the complex electronic components that form the backbone of AI hardware. Gold is extremely conductive, making it ideal for connectors and critical circuit components. Meanwhile, silver has the highest electrical conductivity of all metals and is often used in conductive inks and pastes for complex circuit designs. These metals ensure efficient and reliable data transfer, enabling AI systems to perform complex calculations and process vast amounts of information with unparalleled speed and precision.
- Thermal stability: Precious metals such as platinum maintain their structural integrity and performance at extremely high temperatures, which helps create AI hardware components that can withstand and function effectively in harsh environments.
- Durability and corrosion resistance: AI systems require components that can withstand long periods of use and operate reliably in harsh environments. Precious metals such as gold and platinum are highly resistant to corrosion and wear, ensuring that electronic components in AI systems will continue to function properly for long periods of time.
Precious Metals in AI Hardware and Infrastructure
The insatiable demand for computing power in the AI industry has led to widespread adoption of high-performance computing (HPC) systems and large-scale data centers. These facilities house vast numbers of processors, memory modules, and storage units and are the backbone of modern AI infrastructure.
High Performance Computing and Data Centers
At the heart of HPC systems and data centers are powerful CPUs and GPUs, which run the complex calculations and algorithms that power AI applications. For example, a major bank targeting real estate investors uses expensive GPUs to find and qualify suitable investors through predictive and market analysis. These GPUs make extensive use of gold and silver in their complex circuits.
Gold's excellent electrical conductivity makes it ideal for bonding wires and interconnects in CPUs and GPUs. Gold ensures efficient signal transmission and minimizes energy loss, which is critical for the high frequency operation of modern CPUs and GPUs.
Meanwhile, silver's thermal conductivity is second only to diamond, helping to dissipate the heat generated by densely packed transistors, preventing performance degradation and extending the lifespan of components.
The corrosion resistance of gold and silver protects sensitive circuitry from oxidation, ensuring long-term reliability and long life even in harsh operating environments.
In data storage, platinum is used in the manufacture of hard disk drives and solid-state drives: it improves the magnetic properties of the storage media, allowing for higher data density and faster read/write speeds.
Additionally, platinum-based cooling systems, such as heat sinks and liquid cooling solutions, efficiently dissipate the enormous heat generated by powerful processors, helping to maintain optimal operating temperatures in servers and data centers, ensuring that sensitive electronic components last longer and function properly.
Sensors and Internet of Things (IoT) devices
Sensors and Internet of Things (IoT) devices are another area where precious metals play a key role in AI applications. Critical to collecting and processing data in real time, these devices often incorporate precious metal components with conductive or catalytic properties.
For example, gold is often used in electrodes in sensors and microelectromechanical systems (MEMS) to ensure accurate signal transmission and reception. Silver has excellent electrical properties and is frequently used in conductive paths in IoT devices to ensure efficient communication between sensors and AI algorithms. These sensors and devices collect and transmit data, which AI applications analyze to make informed decisions.
The malleability of gold and silver also enables intricate design and microscale manufacturing, enabling the development of increasingly compact and sophisticated sensors and MEMS devices.
On the other hand, platinum is used in a variety of sensors because it responds stably and accurately to changes in the environment, making it ideal for AI systems that require accurate data input.
The corrosion-resistant properties of these precious metals protect sensitive sensors and other electronic components from environmental factors, ensuring long-term performance and reliability in harsh or outdoor environments.
The Future of Precious Metals in AI
As more businesses look to leverage data and advanced analytics for competitive advantage, precious metals will play an increasingly important role in enabling and shaping the evolution of AI.
According to the World Gold Council, demand for gold in the technology sector grew by 10% in the first quarter of 2024. All the more surprising given the slump in the first quarter of 2023, the boom is being driven by an increase in AI-enhanced laptops, smartphones, and the infrastructure needed to run AI in the first place.
For example, quantum computing, which promises to revolutionize computing power, is already exploring the potential of precious metals. While the superconducting qubits, the basic units of quantum computers, often rely on materials such as niobium and aluminum, precious metals such as gold, platinum, and even europium are also being explored for their unique properties.
Similarly, neuromorphic computing, which aims to mimic the neural networks of the human brain, could also benefit from the use of precious metals. Gold and silver nanoparticles are being investigated for use in synaptic transistors that replicate brain synapses. The excellent electrical conductivity of these metals facilitates the creation of highly efficient, low-power neural networks.
Additionally, platinum and palladium are being investigated for their potential to develop memristors, which are essential for emulating neural pathways. The continued exploration of these metals in neuromorphic computing could lead to breakthroughs in creating more advanced and energy-efficient AI systems.
Environmental and economic impacts of using precious metals in AI
One of the main environmental impacts of using precious metals in AI is the mining process itself: extracting these rare materials from the Earth's crust can lead to significant environmental degradation, including habitat destruction, water pollution, and greenhouse gas emissions.
Mining operations are energy-intensive, further exacerbating these environmental issues and contributing to an increase in the AI industry's overall carbon footprint.
From an economic perspective, relying on precious metals for AI hardware and infrastructure brings supply chain risks and potential price volatility.
As demand for these materials increases, shortages could drive up costs, making AI technologies more expensive and limiting their access and adoption.
For example, while demand for these metals is already high (gold prices could exceed $2,500 this year), it will only increase if governments decide to upgrade their infrastructure, leading to large purchases of GPUs and CPUs. As a result, small and medium-sized businesses that cannot afford to spend large amounts on new technology may not be able to take advantage of AI technologies.
Additionally, geopolitical factors and trade tensions could disrupt supply chains, creating economic instability and potential bottlenecks for AI innovation.
Making sustainability a priority
Balancing technological advancements with sustainability is a key challenge that must be addressed. Precious metals play a key role in enabling AI capabilities, but the industry must prioritize responsible sourcing, efficient resource use, and developing environmentally friendly practices.
Fortunately, efforts towards responsible sourcing and recycling of precious metals are gaining momentum. Many companies are implementing closed-loop recycling systems to recover and reuse precious metals from used electronics, reducing the demand for newly mined materials.
Additionally, a focus on ethical mining practices (such as the Responsible Gold Mining Principles), fair labor standards, and transparent supply chains are becoming increasingly important in the AI industry.
summary
As AI continues to shape our world, the humble yet essential role of precious metals should not be overlooked. These rare materials are the foundation on which the technological marvels of the future will be built, and they will power the next generation of intelligent systems that will transform our lives in unimaginable ways.
But as we harness the power of these rare materials, we must also prioritize sustainability and responsible sourcing practices to balance technological innovation and environmental stewardship.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc.. While the author has made every effort to ensure the accuracy of the information provided, neither Kitco Metals Inc. nor the author can guarantee its accuracy. This article is for informational purposes only. It is not a solicitation for the exchange of any commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article shall not be liable for any loss and/or damages incurred from the use of this publication.
