The Strange Intersection of AI Mining Startups and Political Figures
An investigation into NRED’s questionable advisory board appointments and AI-driven mining claims.
1Questionable Corporate Appointments
Katie Zacharia was linked to NRED, an AI-powered rare-earths mining startup, shortly after her brief tenure as White House press secretary. Despite a formal press release announcing her role on the advisory board, Zacharia later claimed the appointment was fake. The company maintains that discussions occurred, but the role never materialized.
2The Pivot to AI Mining
NRED, formerly known as NovaRed Mining, shifted its focus from traditional copper-and-gold exploration to a platform called MetalCore. The company claims this AI-assisted tool will revolutionize mineral extraction. CTO Valentin Saitarli describes the vision as fully robotic, aiming to extend mining operations beyond Earth to space, despite the company's limited financial history.
3Financial and Operational Reality
As of January, NovaRed held only $65,689 in cash, an amount insufficient to cover projected expenses for the year. The company previously operated as a junior exploration firm with no revenue. The sudden pivot to AI-driven mining technology raises questions about the firm's actual technical capabilities and its long-term financial viability.
4Political Board Composition
The company’s advisory board includes figures like former DHS secretary Kristi Noem and retired Navy commander Phil Ehr. Ehr, who resigned after Noem joined, noted that the board lacked geologists or technical mining experts. Instead, the company recruited individuals with backgrounds in defense, media, and international political consulting, causing internal friction.
5Contradictory Public Statements
While NRED’s website listed Zacharia as management as late as July, representatives claimed the announcement was issued without her consent. Sam Amsterdam, a media professional, acted as an informal spokesperson, suggesting the situation was akin to signing up for a gym but never attending. The website remained unupdated despite claims of correction.
6The Role of External Influencers
Zacharia’s professional history includes an affiliation with Beachbody, a fitness network marketing business. She attempted to direct reporters to an influencer for clarity on this past role while simultaneously managing the fallout from her White House departure. These connections highlight a pattern of unconventional professional associations throughout her career trajectory.
7Internal Dissent and Resignations
Phil Ehr joined the board expecting to focus on critical minerals but was blindsided by the political nature of subsequent appointments. He cited ideological disagreements with Kristi Noem as a primary reason for his departure. The lack of transparency regarding board appointments created a disconnect between the company’s stated goals and its operations.
8Broader Industry Implications
The case of NRED illustrates the risks when speculative AI startups prioritize high-profile political figures over technical expertise. By pivoting to buzzworthy sectors like AI-assisted mining without a clear geological foundation, the company reflects a broader trend of leveraging political capital to attract attention, often at the expense of operational credibility.
Original article: Wired — The Strange Intersection of AI Mining Startups and Political Figures