Quantum Capital Group

Last week, Quantum Capital Group hosted Darcy Partners’s AI Working Group - a dynamic forum with leaders from operators responsible for 10% of global Oil & Gas production. The room buzzed with insights on how GenAI is reshaping our sector. Our co-president, Charles Baillie, set an inspiring tone by outlining his vision for AI-driven change. He underscored the strategic edge of proprietary data and how AI is transforming decision-making across the energy landscape—even as we recognize more work lies ahead. Key themes from our discussion included: ? Cost & Investment: Operators are set to significantly increase their GenAI budgets. With guidance from our Internal AI Steering Committee and early successes from the chatbot use cases demonstrated in our working group, we are driving broad adoption of our GenAI platform, Quantum IQ. Keeping costs low while focusing on adoption is crucial to our agile and cost-effective strategy as we expand. ? Increase contextual understanding: Participants explored innovative ways to digitize physical documents and connect fragmented datasets by employing approaches such as Retrieval Augmented Generation, Text-to-SQL, and Agents. Recognizing that this is the future, we are leveraging these tools in several use cases within Quantum. This strategy not only simplifies data accessibility for business users but also helps reduce the cost of a question. ? Training & Collaboration: The working group underscored the importance of training and alliance with business/domain experts in unlocking the full potential of GenAI. While GenAI doesn't yet have a killer use case, its potential to transform the way we work is undeniable. At Quantum and among its portfolio companies, consistent adoption, training, and day-to-day use of GenAI tools are vital to delivering tangible business value. ? Future Impact & Demand:?At Quantum, we remain bullish on AI’s potential. We believe it will positively impact energy landscape, boost operational efficiency and safety, and drive the energy demand requirements for both training and inference. A huge thanks to everyone who participated in this forward-thinking dialogue. At Quantum Capital Group, we’re dedicated to innovation, nurturing partnerships, and shaping the future of technology in energy. About Darcy Partners: Darcy Partners (https://darcypartners.com/) exists to help the energy industry solve its toughest?technology?challenges. Customers use Darcy’s software platform and research services to identify, vet, and deploy new technologies and to collaborate with industry peers on vital engineering and innovation challenges. Darcy supports over 100 corporate members in the energy, utilities, industrials, and private equity industries. ?#AIInnovation #DigitalTransformation #EnergyTech #MachineLearning #DataExcellence #GenAI #TechCollaboration #BusinessTransformation #DigitalInnovation #EmergingTech

Our Founder & CEO Wil VanLoh?recently joined Bloomberg Television’s Surveillance to discuss the future of energy in America amid soaring power demand and the growing strain on an underinvested energy infrastructure. ? As a leading energy investor for 25+ years, Quantum has demonstrated its ability to navigate market cycles and policy shifts effectively, making impactful investments to address the energy shortage. ? During the interview, Wil shared his perspective on potential U.S. energy policy reforms under the new administration, the ‘early days’ of the shale revolution, domestic oil production, and more.?? ? Watch the full discussion below: ? #Bloomberg #EnergyInvestors #Energy

Our Founder & CEO Wil VanLoh?recently joined Bloomberg Television’s Surveillance to discuss the future of energy in America amid soaring power demand and the growing strain on an underinvested energy infrastructure. ? As a leading energy investor for 25+ years, Quantum has demonstrated its ability to navigate market cycles and policy shifts effectively, making impactful investments to address the energy shortage. ? During the interview, Wil shared his perspective on potential U.S. energy policy reforms under the new administration, the ‘early days’ of the shale revolution, domestic oil production, and more.?? ? Watch the full discussion below: ? #Bloomberg #EnergyInvestors #Energy

?? Exploring AI and Energy at Quantum Capital Group! ?? ? In our recent Quantum Capital Group AI Working Group session, Tuhin Srivastava, CEO of Baseten, and Brian O'Shea provided valuable insights into the evolving AI infrastructure landscape, focusing on the differences between foundational model training and inference. ???? ? Key Takeaways: ?? Open Source Momentum: The rise of open models like Llama and Deepseek is reshaping the AI landscape, addressing cost, privacy, and compliance concerns—especially for regulated industries. ? ?? Infrastructure Shifts: Access to high-quality models is changing capital expenditure strategies, increasing demand for GPUs and distributed data centers. ? ? Energy Impact: As inference costs decrease, AI usage increases, leading to higher power demand and data center capacity needs, reflecting the Jevons paradox in modern tech. ? ?? Training vs. Inference: Training foundational models requires significant compute resources and capital investment, traditionally dominated by tech giants. In contrast, inference—using these trained models for tasks—demands scalable, efficient infrastructure to handle real-time applications and high-volume usage. ? ?? Practical Applications: From domain-specific chatbots to real-time analytics, modern models enable smooth transitions and minimal reengineering, enhancing efficiency. ? ?? Future Outlook: Agentic AI applications are on the horizon, set to become integral to business operations within the next decade, improving speed and focus. ? These discussions at Quantum Capital Group AI Working Group sessions help our portfolio become smarter investors and more savvy in digital and AI. ? #AI #Innovation #QuantumCapitalGroup #EnergyEfficiency #TechTrends #FutureOfWork #MachineLearning #AIIntegration #SmartInvesting

?? Pioneering the Future of Energy and AI! ?? ? Quantum's AI Working Group brings experts in Energy and AI together to trailblaze the sustainable energy ecosystem of the future. Last week, Jeffrey Emanuel, renowned for his influential “NVIDIA thesis” and deep expertise in AI, delivered an insightful talk to challenge our thinking of how Energy and AI will transform private equity and sustainable energy markets: ? Key Takeaways: ?? Market Dynamics & NVIDIA’s Vulnerability: Emanuel challenges the notion of NVIDIA's unassailable dominance, pointing to emerging competitors like Cerberus and Groq. ? ???Training vs. Inference Economics: A shift?from high-cost training to ultra-low-cost inference is accelerating AI adoption ? ?? Diminishing Returns in Model Scaling: Simply increasing model size encounters diminishing returns, emphasizing the need for efficiency. ? ??Efficiency Gains and the Jevons Paradox: As AI training and inference become more energy-efficient, overall, AI usage may paradoxically increase power demand. However, the efficiency gains in AI could outpace demand growth, potentially leading to lower power consumption than forecasted. ? ?? Capital Expenditure and Data Center Strategy: Hyperscalers are reconsidering their CapEx, exploring alternatives like Amazon’s Graviton chips. ? ?? Evolution of Power Consumption: The transition from early GPUs to modern power-hungry GPUs underscores the need for improved utilization efficiency. ? ?? Geopolitical and Supply Chain Considerations: U.S. export restrictions may shift market share toward domestic alternatives, impacting global GPU supply chains. ? ?? Integration of Proprietary Data and Custom AI Solutions: Organizations can leverage low-cost compute to fine-tune AI models, unlocking unique insights. ? ?? Fundamental Shift in Problem Solving: Recent AI advances are setting the stage for a tectonic shift in industry problem-solving, balancing automation with human judgment. A big thank you to Jeffrey who was a perfect guest given his hybrid background in AI and investment, providing a multifaceted perspective on the evolving landscape. ? #AI #Energy #Innovation Jeffrey Emanuel #NVIDIA #TechTrends #FutureOfWork #DataScience #MachineLearning #AIInfrastructure #TechLeadership

Check out the 2024 Year in Review from Orennia (a Quantum portfolio company), which features their insight on data centers, power markets, batteries, and more! https://lnkd.in/gnTdFKAx

Our Founder & CEO Wil VanLoh recently joined Bloomberg Television’s Surveillance to discuss the latest in energy investment and expectations heading into 2025. During the interview, Wil spoke about oil & gas production, reform for the energy infrastructure permitting process, increased power demand for AI data centers, energy prices for consumers, and more. As the global energy industry continues to undergo significant transformation, we recognize the evolving opportunities across the energy value chain and continuously grow and evolve our strategy to capitalize on the many opportunities ahead. Watch the full interview below: #Bloomberg #EnergyInvestors #Energy

Our Founder & CEO Wil VanLoh recently joined Bloomberg Television’s Surveillance to discuss the latest in energy investment and expectations heading into 2025. During the interview, Wil spoke about oil & gas production, reform for the energy infrastructure permitting process, increased power demand for AI data centers, energy prices for consumers, and more. As the global energy industry continues to undergo significant transformation, we recognize the evolving opportunities across the energy value chain and continuously grow and evolve our strategy to capitalize on the many opportunities ahead. Watch the full interview below: #Bloomberg #EnergyInvestors #Energy

We are proud to share that our Founder and CEO Wil VanLoh and Partner Charles Davidson were recently inducted into Hart Energy’s Hall of Fame, which honors industry pioneers and the Agents of Change in Energy (ACEs) who are leading the energy sector into the future. ? Congratulations to Wil, Chuck and all of the inductees on this prestigious honor! ? Read Wil’s profile: https://lnkd.in/gdaAXCwm Read Chuck’s profile: https://lnkd.in/grAjS4aS ? #HartEnergyHallOfFame #Energy ?

?? And it’s a wrap! ?? We just concluded our 7th Annual Tech Forum! The transparency in knowledge sharing and the dedication from our portfolio companies were nothing short of remarkable. A huge thank you to our incredible team for making this event a success. The forum, themed "Driving Innovation and Continuous Improvement in the Era of Mature Resource Plays," featured a series of insightful case studies by our portfolio companies. We delved into strategies for: ? Creating a competitive edge in today’s market ? Unlocking value through resource expansion and recovery improvement ? Enhancing well returns through technological advancement and improved drilling efficiency ? These discussions provided invaluable insights and sparked innovative ideas that will drive our portfolio and our industry forward. ? Day 2 Highlights: ? ? Focus on Quantum’s value-added partnerships for our portfolio companies ? Emphasis on digital engagements through cybersecurity, AI, and collaboration tools like Quantum Basin Intelligence (QBI) and Quantum Basin Guide (QBG) ? Quantum’s Geoscience platform ? Partnering with Quantum’s Shared Services to create value, particularly through ESG applications and procurement benefits ? A huge thank you to everyone who contributed to the success of this event. Your support and dedication have set us apart, connected our companies, and inspired us to continuously improve our businesses. We look forward to building more together and achieving even greater success in the future! ?? ? #TechForum #Innovation #Collaboration #AI #Success