Brightstar Resources (BTR:AU) has announced AUN: Court Approves Schemes
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Brightstar Resources Limited (ASX: BTR) (Brightstar or Company) provides the following update on the proposed acquisition of 100% of the fully paid ordinary shares and options in Aurumin Limited (Aurumin) by Brightstar by way of Court-approved share scheme of arrangement (Share Scheme) and option scheme of arrangement (Option Scheme, together the Schemes) under Part 5.1 of the Corporations Act 2001 (Cth).
Unless otherwise specified, capitalised terms used in this announcement have the same meaning as given in Aurumin’s Scheme Booklet dated 9 October 2025 (Scheme Booklet).
RESULTS OF THE SECOND COURT HEARING
Brightstar is pleased to announce that the Supreme Court of Western Australia (Court) has made orders approving the Schemes under which Brightstar will acquire 100% of the shares of Aurumin and all Aurumin options will be cancelled in exchange for new Brightstar options.
Aurumin intends to lodge an office copy of the Court’s orders with the Australian Securities and Investments Commission (ASIC) on Friday, 21 November 2025, at which time the Schemes will become legally effective. Aurumin expects that the ASX will suspend Aurumin shares from trading on the ASX with effect from the close of trading on Friday, 21 November 2025.
SANDSTONE PROJECT UPDATE
- Brightstar and Aurumin currently have six drilling rigs operating in Sandstone, targeting material Mineral Resource Estimate (MRE) growth and infill drilling key deposits to enable an increase in confidence classification
- Post implementation, the consolidated MRE at Sandstone increases to 2.4Moz @ 1.5g/t Au (pro forma basis with Aurumin)1, with the group total MRE increasing to 3.9Moz @ 1.5g/t Au
- A Mineral Resource upgrade for Sandstone is targeted for release in 1H CY26 following significant exploration drilling over the past 12 months (+70,000m completed to date)
- Workstreams proceed on the consolidated Pre-Feasibility Study, with mining engineering, metallurgical, geotechnical, approvals and permitting activities continuing apace to fast-track the eventual development of the Sandstone Gold Project (targeted for FID in 2H CY27)
- The successful development of Sandstone, in conjunction with the near-term production expansion of Brightstar’s Menzies-Laverton asset base, underpins Brightstar’s aspirational production target of +200,000oz pa.
Brightstar’s Managing Director, Alex Rovira, commented:
“We are delighted to see the overwhelming support from Aurumin securityholders for the Schemes. This is the first time in over a decade the Sandstone Greenstone Belt has been consolidated under one ownership, with production last occurring in Sandstone when the gold price was less than A$1,000/oz.
Despite the limited systematic exploration history as a result of the fragmented ownership, upon completion of the Schemes, Brightstar will emerge with a Mineral Resource of approximately 2.4Moz @ 1.5g/t at the Sandstone Gold Project that is largely constrained within the top 150m from surface. Notably, we see significant potential for Mineral Resource growth following the ~70,000m of drilling already completed in Sandstone by Brightstar, with a targeted ~120,000m of drilling planned for completion prior to the Pre- Feasibility Study targeted for release in mid-2026.
In our view, the Sandstone district potentially represents one of the largest undeveloped gold projects in the WA goldfields in the hands of a junior/emerging company, with the potential for a multi-decade mine life across both open pit and underground operations.
The development of our Menzies, Laverton, and Sandstone Gold Projects is central to delivering on our vision and positioning Brightstar as an emerging mid-tier Western Australian gold producer.”
Click here for the full ASX Release
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LAURION Mineral Exploration (TSXV:LME,OTCPINK:LMEFF, FSE:5YD) is a Canadian mid-stage exploration and development company advancing its 100-percent-owned Ishkōday project in Ontario’s Greenstone Belt. The 57 sq km project hosts gold and zinc-copper-silver mineralization, plus two past-producing mines and roughly 280,000 tonnes of historical stockpiles averaging 1.14 g/t gold—offering multiple value streams and strong leverage to both precious and base metals.
Ongoing drilling, surface work and 3D modeling, supported by leading technical and permitting partners, are outlining a large mineralized system across a 6 km by 2.5 km corridor, highlighting Ishkōday’s district-scale potential. LAURION is also advancing its AEP to enable underground access and potential processing of historical stockpiles, which contain an estimated 10,000 ounces of near-term gold and could provide early cash flow to support future exploration.
Ishkōday geology overview
LAURION’s approximately 73.6 percent insider ownership reflects strong alignment and long-term confidence in the company’s strategy.
Company Highlights
- Dual-mineralization, district-scale opportunity: The Ishkōday project features an uncommon pairing of two mineral systems in a single district: 1) a gold dominant orogenic system and gold with silver-zinc-copper epithermal system.
- Brownfield advantage: Anchored by two historic past-producing mines within a 57 sq km land package in Ontario’s prolific Greenstone Belt.
- Exceptional insider alignment: Approximately 73.6 percent insider, friends-and-family ownership demonstrates long-term confidence in the project.
- Robust technical foundation: Nearly 100,000 metres of drilling, advanced 3D geological modeling, and partnerships with leading engineering, geoscience and ESG firms.
- Near-term cash-flow potential: Surface stockpile and tailings with an historic estimation, containing roughly 10,000 ounces (280kt @ 1.14 g/t Au) of gold pending advanced exploration permit approval.
- Strategic rerating and M&A appeal: Ongoing derisking, resource growth and permitting progress position Ishkōday as a future development or acquisition candidate in a Tier-1 jurisdiction.
This LAURION Minerals Exploration profile is part of a paid investor education campaign.*
Click here to connect with LAURION Minerals Exploration (TSXV:LME) to receive an Investor Presentation
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Elliott Investment Management has reportedly taken a large stake in Barrick Mining (TSX:ABX,NYSE:B), the Financial Times reported on Tuesday (November 18), adding activist pressure to the gold producer, which is already dealing with escalating operational problems and a leadership shakeup.
The moves comes just weeks after the abrupt September exit of former CEO Mark Bristow, and as Barrick’s new chief executive, Mark Hill, begins overhauling the company’s regional structure.
In an internal memo seen by Bloomberg, Hill said Barrick will fold its Pueblo Viejo mine in the Dominican Republic into its North American division and merge its Latin America and Asia Pacific operations to improve performance.
Elliott’s investment also comes during a challenging phase for Barrick.
The company has been hit by rising costs at key North American assets and the loss of its most profitable operation, the Loulo-Gounkoto mine in Mali, after the military junta seized control earlier this year.
The dispute, which was tied to Mali’s new mining tax code, resulted in 3 metric tons of gold being taken by the state and the detention of four Barrick employees. The asset loss also triggered a roughly US$1 billion writeoff.
The setbacks have left Barrick trailing behind its peers despite a powerful gold price rally. Company shares are up 117 percent in the past year, compared with an average 130 percent gain among major rivals.
Barrick’s performance has company executives weighing their options.
As mentioned, a split into two companies is being considered. Four people told Reuters that this could involve one firm focused on North America and another holding assets in Africa and Asia. Another option would involve selling Barrick’s Africa portfolio outright, along with the Reko Diq project in Pakistan once financing is secured.
Barrick is also trying to resolve its dispute with Mali before pursuing a sale of that operation.
Investors have pushed similar ideas before, but were stifled due to the company’s North American footprint.
The company’s core US asset is Nevada Gold Mines, which it operates in partnership with Newmont (NYSE:NEM,ASX:NEM), and the sentiment has been that “there is not much of value” in Barrick’s remaining mines.
Bloomberg reported last month that Newmont was looking at whether a transaction could give it control of the Nevada operations it shares with Barrick, but discussions have not advanced since then.
Elliott, meanwhile, has a long record of targeting miners, including Anglo American (LSE:AAL,OTCQX:AAUKF) and Kinross Gold (TSX:K,NYSE:KGC), and often pushes for structural changes.
For Barrick, the challenge now is stabilizing its operations, while deciding how far to go with strategic restructuring in today’s historically high gold price environment.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Gina Rinehart, owner and CEO of private Australian mining company Hancock Prospecting, has become the largest shareholder of rare earths company MP Materials (NYSE:MP).
Rinehart’s stake in MP, which she owns via Hancock, now stands at 8.4 percent.
According to Bloomberg, Hancock added 1 million shares to its MP position in the third quarter. After MP’s share price doubled during the period, it became the top holding in Hancock’s portfolio.
MP owns and runs the Mountain Pass rare earths mine in San Bernardino County, California. The mine was revived by MP in 2017 and achieved first rare earths concentrate production in 2018.
In 2024, the company produced a record 45,455 metric tons of rare earth oxides in concentrate, as well as 1,294 metric tons of neodymium-praeseodymium (NdPr) oxide, also a record amount.
Mountain Pass is currently the only operating rare earths mine in the US, and is gaining attention as the US seeks to establish a rare earths supply chain outside of China. In July, the US Department of Defense (DoD) agreed to buy US$400 million worth of preferred stock in the company, a move that MP called a ‘transformational public-private partnership.’
On Wednesday (November 19), MP deepened its DoD relationship with a partnership to establish a joint venture with Saudi Arabian Mining Company (Maaden); together they will develop a rare earths refinery in Saudi Arabia.
‘This agreement will be beneficial to MP and our industry, and it further aligns U.S. and Saudi interests,’ said James Litinsky, MP’s founder, chair and CEO, in a press release shared by the company that day.
‘The formation of the joint venture also underscores MP Materials’ role as an American national champion, and it demonstrates how our fully integrated platform can project U.S. industrial capability abroad.’
Earlier this year, the Trump administration said Dateline Resources’ (ASX:DTR,OTCQB:DTREF) Colosseum mine, located 10 kilometres from Mountain Pass, could continue operations under its existing mine plan.
A bankable feasibility study is currently being completed for Colosseum, and is due for completion in early 2026.
Rinehart’s rare earths investments
Rinehart is the wealthiest person in Australia, holding a net worth of US$23.9 billion.
According to Forbes’ 100 billionaires list, she was the 61st richest person globally as of March 7, 2025.
Besides MP, she is also the largest shareholder of Arafura Rare Earths (ASX:ARU,OTC Pink:ARAFF), with Hancock’s first investment in that company tracing back to December 2022.
On October 29, Arafura said it was conducting a AU$475 million financing to further advance its Nolans project. Nolans is expected to eventually supply approximately 4 percent of the world’s NdPr oxide.
Arafura said Hancock committed AU$125 million to the placement, bringing its stake in the firm to 15.7 percent.
Hancock also holds an interest in Lynas Rare Earths (ASX:LYC,OTCQX:LYSDY), with Rinehart raising her stake in the company to 8.21 percent in January via the purchase of about 10 million shares.
In 2023, Hancock Prospecting was reported to back Brazilian Rare Earths (ASX:BRE,OTCQX:BRELY) before it went public, taking a 5.85 percent stake. Brazilian Rare Earths listed on the ASX in December 2023.
Through Hancock, Rinehart also holds investments in lithium, copper and many more commodities. Click here to read about her mining investments and work in the sector.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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Private investor Don Hansen returns to share his latest thoughts on gold, outlining five factors that illustrate how powerful the current bull market is.
‘I think it’s pretty obvious that in 2025 we’re in a secular bull market in gold, and it’s only (just) started,’ he said. In his view, it’s in the second inning of what may be a 15 inning game.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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Steve Barton, host of In It To Win It, shares how he picks mining stocks, running through his initial screening process for companies, as well as the questions he asks CEOs.
He also explains how he decides when to buy and when to sell.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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China’s lithium market strengthened sharply on Monday (November 17) after Ganfeng Lithium (OTC Pink:GNENF,HKEX:1772) Chairman Li Liangbin said at a domestic industry conference that demand for the key battery metal could grow by as much as 40 percent in 2026.
The most-traded lithium carbonate contract on the Guangzhou Futures Exchange rose 9 percent that day and moved near its upper limit, marking its strongest close since June 2024.
Li’s comments, first reported by financial news outlet Cailian and later shared by Reuters, also included a projection that lithium carbonate prices could reach 200,000 yuan if demand accelerates as expected.
Traders said the reaction from the lithium price shows how much weight Ganfeng carries in a market that has been quick to react to any sign of stronger consumption after years of oversupply.
Chinese lithium carbonate prices are already up more than 17 percent this month on improving sentiment in the energy storage sector and expectations that demand for stationary batteries will grow through 2026.
CATL restart drives lithium volatility
China’s lithium market is also seeing support from the delayed restart of Contemporary Amperex Technology’s (CATL) (SZSE:300750,HKEX:3750) Jianxiawo mine in Yichun.
The mine normally produces about 65,000 metric tons of lithium carbonate equivalent a year, roughly 6 percent of global supply. However, it has been shut down since August after its operating permit expired.
CATL is reportedly making progress at getting the mine back online, but no exact date has been given.
The shutdown has spilled into global markets as well. In September, Australian lithium stocks fell sharply on the back of signs that CATL’s restart could be approaching.
Oversupply still weighing on lithium market
Beyond China, the broader lithium market has struggled with imbalance throughout 2025.
Prices spiked in July and August before easing again in September, with talks of potential supply cuts by Australian miners creating short-lived rallies despite strong inventories and growing production.
“The nascency of the lithium market means that it is prone to be led by sentiment,” Fastmarkets’ Claudia Cook wrote earlier this year, noting how futures activity has repeatedly drifted from fundamentals.
Oversupply remains the defining theme. Global mined output has jumped 192 percent since 2020, swelling inventories faster than even robust electric-vehicle demand can absorb.
While electric vehicle sales topped 17 million units in 2024 and are expected to exceed 20 million this year, production growth, including a 22 percent rise in mined supply in 2024, has kept the market in surplus.
Analysts have warned that the imbalance in the lithium sector could persist into the next decade unless mine delays, project cancelations or unexpectedly strong demand intervene.
Beijing’s new export controls have added another layer of uncertainty.
Export controls announced last month would mandate that Chinese companies secure export licenses for high-energy lithium-ion batteries, synthetic graphite anodes and critical production equipment. China has delayed the implementation of these controls for one year, until November 10, 2026, as part of a deal with the US.
Against that backdrop, the US is looking to boost its supply of non-Chinese lithium.
The US Department of Energy released the first US$435 million from a US$2.23 billion loan to Lithium Americas (TSX:LAC,NYSE:LAC) in October, advancing construction of the Thacker Pass project in Nevada — set to become the largest lithium source in the western hemisphere once online. The project is central to Washington’s push to reduce dependence on Chinese refining and secure domestic supplies of battery-grade material.
For now, China remains the clearest guide for price direction. Monday’s futures jump showed how quickly sentiment can move when major producers offer firmer demand signals.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Investor Insight
Copper Quest Exploration is advancing a portfolio of high-quality copper porphyry projects across British Columbia and the Western United States. With over 40,000 hectares in tier-one jurisdictions and a discovery-first mindset, the company is positioned to deliver multiple catalysts from both Canadian and US projects in 2025 and beyond.
Overview
Copper Quest Exploration (CSE:CQX,OTCQB:IMIMF,FRA:3MX) is focused on creating shareholder value through the exploration and development of its North American critical mineral portfolio. The company’s land position covers more than 40,000 hectares across tier-one mining jurisdictions in Canada and the US.
In British Columbia, Copper Quest holds a 100-percent-interest in the Stars property, a porphyry copper-molybdenum discovery covering 9,693 hectares in central BC’s Bulkley Porphyry Belt; the 5,389-hectare Stellar property, consolidating multiple historic showings and new geophysical anomalies; an earn-in option of up to 80 percent on the Rip project, a 4,700-hectare porphyry copper-molybdenum system in the same belt; and the 100-percent-owned Thane Project, spanning 20,658 hectares in the Toodoggone Porphyry Belt with multiple copper-gold-molybdenum targets.
In Lemhi County, Idaho, Copper Quest has acquired the Nekash copper-gold porphyry project, an early-stage, highly prospective property in the Idaho-Montana porphyry belt. The acquisition marks Copper Quest’s expansion to the US, strategically leveraging Idaho’s growing reputation as a copper exploration frontier.
The company is expanding its footprint in BC through an agreement to acquire the Kitimat Copper-Gold Project, located about 10 km northwest of the deep-water port of Kitimat, and an option to purchase a local company holding 100 percent ownership of the Alpine Gold Property.
Company Highlights
- Large, Tier-one Land Position: More than 40,000 hectares across British Columbia’s Bulkley and Toodoggone Porphyry Belts, plus a newly acquired copper-gold porphyry project in Idaho, USA.
- Flagship Discovery at Stars: Drill intercepts of 0.466 percent copper over 195.1 m confirm a fertile porphyry copper-molybdenum system with over 30 km of untested intrusive contacts.
- Multiple Copper Systems: Canadian portfolio includes Stars, Stellar, Rip (earn-in up to 80 percent) and Thane, each offering district-scale potential in proven belts.
- Idaho Acquisition: The Nekash copper-gold porphyry project in Lemhi County, Idaho, is a milestone acquisition aligned with its strategy to build a portfolio of highly prospective copper assets across North America.
- British Columbia Acquisition: Copper Quest is acquiring both the Alpine Gold Property in the West Kootenay region and the Kitimat Copper-Gold Project located just 10 km from the deep-water port of Kitimat, B.C.
Key Projects
Stars Project
The Stars project is a 9,694-hectare, road-accessible copper-molybdenum property situated within the prolific Bulkley porphyry belt. The district is home to past-producing operations such as the Huckleberry mine, operated by Imperial Metals, and Newmont’s Equity Silver Mine, making it a proven copper jurisdiction. Stars is defined by a 5 × 2.5-kilometre annular magnetic anomaly that coincides with a copper-molybdenum mineralized monzonite intrusion. In 2018, drilling confirmed a significant porphyry system at the Tana Zone, returning intercepts of 0.466 percent copper over 195.1 m from 23 m with molybdenum credits and 0.20 percent copper over 396.7 metres from 28 metres depth. Shorter, higher-grade sections included 40 metres averaging close to 1 percent copper. Importantly, every hole drilled on the property has returned copper concentrations well above background levels, with strong phyllic and potassic alteration, multi-phase intrusive textures, and quartz-sulfide veining consistent with productive porphyry systems.
Impressive drill results in 2018 have never seen follow-up exploration
Geological comparisons with Huckleberry suggest Stars has the potential to host multiple deposits along more than 30 kilometres of untested intrusive contact. Upcoming work will focus on IP surveys to vector into contact zones, step-out drilling at the Tana Zone, and initial drilling of embayment features such as the “Big Dipper” anomaly.
Rip Project
The Rip project is a 4,750-hectare copper-molybdenum property located 60 kilometres south of Houston, BC, with excellent access via Highway 16 and logging roads. Geophysical surveys completed in 2024, including airborne magnetics and a 3D-DCIP induced polarization program, identified two concentric chargeability anomalies encircling separate magnetic highs. These “donut” features are classic pyrite halos that typically rim porphyry copper centres.
In late 2024, Copper Quest drilled two holes totaling 1,033 metres into the northern anomaly. The results confirmed the presence of multi-phase porphyry intrusions with abundant quartz-pyrite-chalcopyrite-molybdenite veining, long intervals of anomalous copper above 0.1 percent, and strong alteration patterns. The larger southern anomaly remains completely untested and represents the project’s most significant target. Copper Quest has the option to earn up to 80 percent in Rip by spending $1 million by the end of 2025, after which the agreement transitions to a joint venture. Planned drilling will test the southern anomaly while stepping out on the northern target to vector into higher-grade zones.
Stellar Project
The Stellar project covers 5,389 hectares and lies immediately north of Stars. It consolidates multiple historic claims and showings that had never been evaluated under a unified geological model. Stellar hosts several key targets, most notably the Cassiopeia anomaly, a 2.5-kilometre magnetic bullseye with an 800-metre magnetic low at its centre, discovered in 2019 but never drill tested. This geophysical feature is strongly consistent with porphyry copper-molybdenum-gold models.
The Jewelry Box area is another high-priority target, hosting eight documented MINFILE showings where historical sampling returned extreme grades, including 36.7 percent copper, 31.2 percent copper, 22.6 percent copper with 4,860 grams per ton (g/t0 silver, and gold values up to 42 g/t. These occurrences are related to a porphyritic intrusion that cuts Hazelton Group volcanic rocks and limestone, with mineralization styles ranging from high-grade copper-gold-silver veins to lead-zinc-silver occurrences and rhodonite-hosted mineralization. Additional targets include the Galena Zone, a 100 × 150 metre area with strong lead-silver-zinc mineralization, and the Northwest Showings, associated with syenite intrusions. Copper Quest is applying a holistic approach to the property for the first time, integrating fragmented historical exploration. Planned programs include ground IP at Cassiopeia, systematic mapping and sampling at Jewelry Box, and drill targeting across the consolidated property.
Thane Project
The Thane project is a 20,658-hectare copper-gold property in the Toodoggone District of the Quesnel Terrane, an area that hosts major porphyry deposits such as Mt. Milligan and Kemess. The property encompasses a 14 km × 6 km alteration footprint with at least ten mineralized centres, including Cirque, Fairway, Bananas, Gail, and Aten. Historical exploration has involved more than $5 million of investment in mapping, geochemistry, geophysics and shallow drilling, with 12 short diamond drill holes completed to date. Rock sampling campaigns between 2013 and 2020 returned copper grades exceeding 9,000 parts per million (ppm) and gold values up to 12.8 g/t, highlighting the system’s fertility. Regional Geoscience BC datasets place Thane in the 100th percentile for copper prospectivity across British Columbia. Copper Quest views Thane as a large-scale discovery opportunity and is considering a joint venture to advance the project while retaining upside exposure.
Nekash Project
The Nekash project is a highly prospective copper-gold porphyry opportunity in Lemhi County, Idaho, situated along the prolific Idaho-Montana porphyry belt. Spanning 70 unpatented federal lode claims (~585 hectares), the property is fully road-accessible via maintained US highways and forest service roads. Historic sampling has confirmed the presence of high-grade surface mineralization, including up to 3.8 percent copper, 0.9 g/t gold, and 25 g/t silver over 6.4 m in a stratabound “manto” horizon, and porphyry-style veins grading as high as 6.6 percent copper with gold values.
Acquired at a modest cost (4.25 million shares, no cash payment or royalties), and coupled with the appointment of an experienced technical advisor, Nekash offers shareholders exposure to a jurisdiction with favorable infrastructure, strong comparables and room for significant upside through geophysics, geochemistry and drilling.
Management Team
Brian Thurston — CEO and Director
Geologist with over 30 years of global exploration experience Brian Thurston is the former country manager for Aurelian Resources in Ecuador during the Fruta del Norte discovery. Has managed and founded multiple public resource companies with expertise in porphyry systems, corporate strategy, and capital markets.
Dong Shim — CFO
Dong Shim is a chartered professional accountant with extensive experience in public company audits, financial controls and cross-border reporting for TSXV, CSE and OTC issuers.
Dr. Mark Cruise — Director
A geologist and mining executive with over 25 years of experience, Mark Cruise is the founder and former CEO of Trevali Mining, which he built into a top-10 global zinc producer with operations in four countries. Previously with Anglo American.
Jason Nickel — Director
Jason Nickel is a mining engineer with three decades of mine design, operations, and project management experience across Canada. Held senior roles in underground and open-pit operations.
Cameron MacDonald — Director
Cameron MacDonald is a capital markets professional with background in M&A, project financing and equity/debt raises exceeding $950 million.
Joshua White – Technical Advisor
Joshua White is an exploration geologist with more than 13 years of experience, and a principal of Aqua Terra Geoscientists LLC. He worked for Kinross Gold as a project generation gold geologist, working at mines and exploration projects on 4 different continents.
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Silicon Valley’s tech giants are pouring hundreds of billions of dollars into artificial intelligence (AI) infrastructure this year, a commitment that has been met with growing anxiety from shareholders.
This massive investment, reminiscent of the dot-com boom, has faced skepticism over its sustainability.
Market concerns were recently amplified after investor Michael Burry, who successfully bet against the US housing bubble, shorted tech shares and argued that AI hyperscalers are artificially inflating earnings by extending the useful life of costly equipment, a practice he termed “one of the more common frauds of the modern era.”
As investors weigh the promise of AI against the risks of inflated valuations and uncertain profitability, success will depend on grasping the strategic and legal dynamics of the AI infrastructure market, not just technological progress.
Overinvestment concerns in AI infrastructure
Drawing parallels between the current AI investment boom and the historic dot-com bubble, Ramos warned about the risk of overbuilding capacity without enough demand-driving applications.
“I’ve been worrying that we’re … building all this capacity, (but) there aren’t enough killer apps to use all the capacity that’s being built. What I worry (is that) we’re going to end up in the same place that we did in the boom,’ he said.
Formerly an engineer at the Boeing Company (NYSE:BA), Ramos provides technical insight on intellectual property (IP) licensing, portfolio growth and management. He leverages his experience in software and IT service transactions to advise clients on AI risk evaluation and help them develop workplace AI policies.
Ramos cautioned against overbuilding capacity without established demand, drawing lessons from the telecommunications bubble. He compared the fiber optic cable buildout of the past to the current construction of AI data centers and infrastructure, and described working extensively for companies involved in building out this capacity, only to see the market collapse when the anticipated demand failed to materialize.
“We did all these things technologically to get more capacity, and then it wasn’t needed. And all the investments that happened … it impacted my practice quite a bit,’ he noted.
While today’s enthusiasm is similar to what happened then, Ramos said a key difference is that today’s institutional investors are less willing to tolerate prolonged uncertainty without visible paths to profitability.
“Enterprise demand kind of works in the same way that it always did,” he explained.
“Most of my clients have not yet put a whole bunch of money into the next brand-new thing, because they want to make sure the next brand-new thing works and is going to be sold and maintained by a vendor who’s going to be around to do that. So there’s kind of a slower adoption than what you see on the consumer side,’ Ramos added.
Companies that look beyond hype and strategically balance investment with clear business cases will likely emerge strongest. Ramos advised leaders to consider succession and exit strategies in technology ventures early, underscoring that “the business lifecycle around AI is evolving quickly, and legal foresight is essential.”
Legal and regulatory considerations shaping AI infrastructure adoption
With technology evolving rapidly, Ramos emphasized that savvy businesses must assess AI-specific risks carefully, pointing to issues such as intellectual property infringement.
“Data privacy is a concern,” he said. “If you have an AI solution, and you are using it to solve problems that involve putting personal information into an LLM, can that LLM access that information to answer other people’s questions? And, if they can, there’s a potential that you have privacy breaches going on.”
Ramos advised businesses to consider where the value of AI adoption lies, and whether it comes with its own flaws.
He also highlighted that the landscape is currently highly fragmented, with no preemptive federal policy guiding AI development. As a result, states are establishing their own rules, creating a “patchwork” of regulations that increase compliance challenges as well as costs, a potentially major impediment to both innovation and infrastructure investments. All of this will shape how and where companies decide to develop and deploy AI solutions.
Strategic innovation in AI infrastructure
Ramos suggested that the buildout of AI infrastructure could prompt significant changes in how companies approach tech investment, noting that models could shift toward more flexible resource allocation rather than outright ownership, mirroring successful “capacity sharing” approaches from past technology cycles.
The emergence of new models and increased focus on energy efficiency could prompt significant changes in how companies structure their technology investments and strategies.
Ramos highlighted time sharing of GPU resources as a key emerging strategy to optimize costly AI infrastructure, drawing a parallel to historical time sharing in fiber optics as a model.
He explained that with GPUs currently utilized only 15 to 20 percent of the time, there is major potential for efficiency gains if companies share or lease compute resources when not in use.
Emerging business models that enable GPU time sharing represent promising avenues for value creation. For investors, this marks a shift toward more asset-light, scalable models in AI infrastructure.
A partnership between decentralized data platform Pundi AI and decentralized cloud computing provider Spheron Network exemplifies this strategy. Their collaboration addresses the problems of low-quality training data and the high costs of compute resources by providing verifiable, community-labeled datasets with on-chain provenance, packaged as tokenized digital assets that development teams can access securely and transparently.
The recent partnership creates an integrated pipeline from data to scalable, affordable compute, supporting decentralized AI development and directly addressing the inefficiencies and bottlenecks in current AI workflows.
On the compute side, Spheron Network offers decentralized and affordable GPU and CPU resources, enabling AI developers to rent compute power on demand rather than relying on costly fixed infrastructure.
This allows AI developers, especially startups and small teams, to run more experiments per dollar, avoid costly fixed infrastructure and scale compute resources flexibly based on their needs.
Investor takeaway
As capital floods into AI infrastructure, Ramos advised prudence coupled with innovation.
The stakes are high, with opportunities to reshape the technology landscape, but equally real risks underscoring the importance of legal and strategic guidance. For companies navigating these waters, careful planning around AI investments and corporate policies will be key to long-term success.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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