The AI boom has sparked a power race, and Chevron Corp CVX, GE Vernova Inc GEV, and investment firm Engine No. 1 want in.

The trio just announced a joint venture to supply natural gas-fueled electricity to AI data centers, aiming for 4 gigawatts of capacity—enough to power 3.5 million homes—by the end of 2027.

Timing is everything. The news comes just as Chinese firm DeepSeek unveiled an AI model that’s similar to ChatGPT, but consumes far less energy. Power stocks—including GE Vernova—subsequently tumbled.

See Also: Bill Gates Says This Book On AI Will ‘Change Every Industry’ – Predicts Millions Of Jobs Will Vanish By 2030

The AI Power Grab

With AI's energy demands surging, investors have been piling into power plays, fueling a renewed interest in nuclear and natural gas generation. Chevron, the U.S.'s second-largest oil giant, is supplying the gas, while GE Vernova will provide its turbines for “power foundries” across the Southeast, Midwest, and Western U.S.

The goal? Co-located data centers with built-in carbon-cutting tech like carbon capture and renewable energy integration.

The companies are even framing their first project as the flagship power plant of President Donald Trump's second term.

Chevron Earnings On Deck

Investors won't have to wait long for an update—Chevron reports fourth earnings on Friday before the market opens.

Analysts expect $2.11 in EPS on $46.75 billion in revenue, pre Benzinga Pro data. With AI power demand rising and energy markets in flux, Chevron's outlook could provide key insights into its long-term AI power strategy.

Read Also: GE Vernova Mixed Q4: Revenue Misses, But Orders Surge 22% Amid Strong Electrification Demand

GE Vernova's Mixed Bag

GE Vernova's stock has soared 173% over the past year, but its latest earnings were a letdown.

The company missed fourth-quarter revenue estimates, posting $10.59 billion versus expectations of $10.78 billion, though orders surged 22% organically.

It reaffirmed a bullish 2025 outlook, with $36-$37 billion in revenue and up to $2.5 billion in free cash flow.

The Big Question

Can Chevron and GE Vernova cash in before AI efficiency gains make their power surge obsolete?

Investors will be watching closely to see if this joint venture rides the AI wave—or gets caught in its undertow.

Read Next:

• Chevron Strikes Oil Milestone In Tengiz: Future Growth Project In Kazakhstan Boosts Output

Image: Shutterstock