🕶️ Forget Likes—The Future of Social Media Is Private

A recent New York Times report highlights a growing challenge in the AI industry: data centers powering AI models are consuming massive amounts of electricity and water, pushing companies to seek alternative power sources—including nuclear energy. Microsoft, for instance, is reopening the Three Mile Island nuclear plant to sustain its AI infrastructure, while Google and Meta are investing in water-intensive cooling systems that could strain local resources. The report estimates that AI-related power demand in the U.S. could double by 2030, a shift that will impact cloud pricing, sustainability efforts, and even regional energy policies.

For startups, this raises a critical question: Can they afford to keep up? The rising cost of compute power could make it harder for smaller AI players to train and deploy models, reinforcing Big Tech’s dominance. Some startups, like CoreWeave, have pivoted to providing cloud GPUs, capitalizing on the infrastructure boom. Meanwhile, investors are looking at energy-efficient AI models, alternative semiconductor designs, and novel cooling technologies as ways to lower costs and create new market opportunities. As AI reshapes industries, the infrastructure behind it could determine the next wave of winners and losers in the startup world.

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As traditional social platforms lose steam, investors are betting on a new wave of consumer apps driven by AI, personalization, and Gen Z’s evolving habits. Startups are moving away from mass broadcasting toward friend-focused, private social networks, where users engage in smaller, more meaningful interactions. This shift is fueled by growing dissatisfaction with mainstream platforms and a desire for intimacy over virality.

AI is playing a major role in this transformation. Tools like Lovable let users create personalized social apps without coding, empowering people to build customized, niche communities tailored to their interests. Investors are also eyeing social platforms that tackle loneliness by facilitating real-world connections and deeper online interactions, reflecting a broader trend toward purpose-driven digital spaces.

Despite a sharp decline in social app funding—from $3.1B in 2021 to $900M in 2024—the sector is far from dead. The next wave of platforms will likely look nothing like TikTok or Instagram, focusing instead on AI-driven experiences and community-first engagement. The question is: Who will crack the code before Big Tech catches up?