The Black Hills AI Sponsorship Flywheel

I want you to start by visualizing a very specific, a very expensive nightmare. Okay. You are the chief marketing officer at a major tech company. Let's say, you know, anthropic, or maybe a legacy giant like Herman Miller or Ford. You have this massive budget, a budget that would make most people's heads spin, but you have a problem that money just can't seem to fix. The narrative problem. The narrative problem. Exactly everywhere you turn, Congress, social media, the family dinner table, the story is AI is the villain. AI is coming for your job. Right. And it doesn't matter how many slick, super pool ads you buy, you just can't seem to shake that cold, distant, you know, tech bro stigma. What was the defense trip? You see it all the time in crisis PR. Yeah. You're spending millions and millions of dollars just to apologize for existing. You're playing goalie. You're playing goalie against a firing squad of public opinion. Yeah. Okay. Now, what if I told you there was a way to flip that script completely? What if there was a way to prove AI creates jobs, revitalizes rural America? And here's a kicker. Get your logo permanently installed as the hero of that story. It sounds a little like a pitch tech fantasy. I have to say, but today we're looking at something very real. We are. We're doing a deep dive into the Black Hills consortium or BHC. But we're not just talking about the technology today. We're looking at the deal. And this is what I love about this. Usually, you know, we're dissecting a research paper for some news and we today we are analyzing an open business proposal to call to arms. It is for marketing directors, for manufacturers, right. And to understand the value of that deal, we have to quickly set the stage for anyone who hasn't been following the headlines. Luke Almorez, a former Ed Tech executive pulled off something, well, something statistically improbable in Custer, South Dakota. Improbable is putting it lightly. He used AI tools specifically clawed in cursor to build 11 functional companies in 60 days and 60 days. And he didn't do it in a garage in Palo Alto. No, we didn't town of what 2,000 people in the Black Hills. And the result wasn't just code. It was jobs, 60 hires, a 15 acre campus. I mean, his core thesis is AI saved small town America. That is the hook. But the deep dive today is about what they call the sponsorship fly wheel. It's a mechanism for brands to integrate themselves into these physical campus, this media ecosystem, and this political movement. And when we say integrate, we are not talking about writing a check for a charity gala. We're talking about equipment, dirt, steel. It's an asset-based partnership. But before we get into the nuts and bolts of the gym equipment or the projectors, we have to look at why a brand would even care. You mentioned that nightmare scenario for CMOs earlier. Yeah, let's dig into that. I mean, look at the big players. Open AI, Meta, Google, they're in a PR crisis. Absolutely. If you look at the estimated marketing spend for these AI giants, it's just staggering. We're talking at a combined budget estimated north of what $700 million. Wow. Meta is pouring money into Lama to make it seem friendly. Open AI is spending millions to combat the skynet fear factor. They're desperate for a win. They need something that feels human. And that is the scarcity in the market. A feel-good AI story is rare. The BXC narrative is AI created 60 jobs in a town with zero tech presence. It's AI-trained 500 kids in rural schools. So if you're anthropic, you aren't just buying ad space. You're buying the right to point it custer South Dakota and say, see, we helped build that. We are not the bad guys. Precisely. In marketing terms, you are buying brand attribution to a positive economic event. And BXC is explicitly offering naming rights. I mean, we're talking about the anthropic auditorium. Or the metagym. Exactly. But hold on. How is that different from buying naming rights to a stadium or slapping your name on a convention center for a weekend? Permanence and relevance. That's the difference. A digital banner disappears when you refresh the page. Right. A conference banner goes in the trash on Monday morning. This is a bronze plaque on a building where people work every single day. It's integrated into the story of the town's revival. OK, so that's the high level why. Let's get into the what? Because this proposal is surprisingly specific. They're not just asking for cash. They are asking for stuff. What's a physical campus? They call it the grow campus, 15 acres. And they are building it out right now. This is not some metaverse land grab. It's physical infrastructure. And they have this powered by placement strategy. Let's start with the gym. This one fascinates me because it seems so disconnected from AI at first glance. It does. Until you understand the culture of the tech world, BHC is building a sports complex basketball court skate park, a heavy weight room. It mimics the setup. You see it high end tech HQs in Silicon Valley. But it's sitting in the rugged black hills. And the specific ask here is for equipment brands. Rogue fitness, R.E.P. Titan. They need rigs, plates, barbells. OK, so play devil's advocate for a second. Why does Rogue fitness, the premiere name and CrossFit and weightlifting care about a gym in South Dakota? Well, it becomes a showroom, doesn't it? Think about who visits this campus. It's not just the employees. It's venture capitalists flying in from the coasts. It's politicians. It's other tech founders. And what are those demographics, too? They train. It's the new golf. So if you have powered by Rogue on the wall, and every time a high profile VC posts a workout selfie on Instagram, which they love to do, your rack is in the background. Oh, that's high visibility. Very, it's almost a subliminal association. The people building the future use road. It targets the influencers of the business world. It's not about volume. You are getting millions of eyeballs walking past the rack like you would at some chaotic expo. No, you're getting the right eyeballs. Good quality over quantity play. OK, so moving from the gym to the boardroom, they have the AV and tech needs. This is the most direct B2B play. They have an auditorium, conference rooms. They need projectors. I think Epson, BenQ screens, high-end audio systems. The value proposition here seems obvious, but walk us through it. It is. The gear is featured in every live stream. But more importantly, you have to remember, they have an accelerator called seed labs. Right, where the startups are actually built. So when a startup founder is pitching to an investor a life-changing moment, they are standing in front of your screen. They are using your clicker. The image is projected by your tech. It associates the brand with innovation. If the tech works seamlessly during that pitch, that's a powerful endorsement. It's basically saying, this is the tool you use to close the deal. And if you're an office furniture brand, Herman Miller Steelcase, it's the same logic. They're furnishing an HQ for 60 people plus all the relocating companies. The chair that saved rural America. It's a bit dramatic, but yeah. If you watch those office tour videos on YouTube and people do, buy the millions. Seeing a sleek Herman Miller setup in a rural context, signals that this place is legitimate. It bridges that gap between small town project and world class company. There's another element here that I think is really clever and it speaks to the social nature of business, the coffee. Ah, yes, the OP. Does there cafe and merch hub? But it's designed as a third place, not work, not home. It's where everyone meets. Tourists, VCs, locals. They need good espresso machines. Lamarzaco, Breville. Coffee is the fuel of the tech industry. I mean, if you power the coffee that fuels the revolution, that creates a really strong brand affinity. It's intimate. You're part of the morning ritual. And finally, the coolest one, in my opinion, the fleet. Luke bought a fleet of Ford Broncos. Old school or new school? New school. They use them to pick up investors from the airport, drive them through the badlands, take them to the campus. It's all part of the experience. And they're looking for automotive partners. They are putting logos on the doors. So if you are Ford or Toyota or Rivian, you want your truck to be the one driving the future of the economy through the American West. That is the shot. Wow. It creates this image of rugged capability combined with high tech progress. It's a very specific aesthetic that a lot of truck brands are trying to capture right now. Right. But having your logo on a car or a coffee machine is great. But what makes this whole flywheel concept truly interesting isn't just the physical placement, is how that physical placement feeds into their media machine. The content engine. This is the part that actually blows my mind. Because BHC isn't just a tech project. They own their own media company called The Session Media, which creates what they call an SEO mode. Explain that for the listeners who aren't SEO wizards. An SEO mode basically means you dominate the search results for your specific niche so thoroughly that competitors just can't break in. BHC is flooding the zone with content about AI, rural development, startups, all of it. So if you donate the gym equipment, you don't just get the plaque on the wall. That equipment is filmed in their documentary series, can AI save America? It's integrated content. It's not a commercial break. It's part of the show. And it gets better. They have this concept called the Shark Tank reversal for investors. I honestly think this is genius. It flips the power dynamic completely. Usually founders fly to Sandhill Road in California and they beg VCs for money. Right. BHC flips it. Investors have to apply to visit Custer. And if they get invited, they fly out for a three day investor experience. They ride in the Broncos. We just talked about they eat James Beer level food at the campus cafe. They sleep in guest housing with deer outside the window. But here is the catch. And this is crucial for sponsors. The investors must record a podcast episode as part of the visit. It's a requirement. It is mandatory. It's written into the agreement. So imagine this. You have these high profile investors, founders, and influencers sitting in a studio talking about the future. And if you are the brand that sponsored the microphones or the chairs they're sitting in or the coffee they're drinking. You are in every single episode. Automatically. That guarantees content generation. Most sponsorships are passive. You give them money and you what I hope they remember to tweet about you. Yeah. This process is exposure. The mechanism itself generates the content. They call it zero waste marketing. If a brand provides a treadmill, it's used by employees to stay healthy. That's internal value. It's tested by visiting VCs. That's influencer marketing. It's filmed for YouTube. That's content marketing. And it's branded on the wall. That's traditional out of home advertising. It just works 24-7. There is also a massive event component to this, right? Yeah. Physical assets are great, but live audiences are really powerful. Oh yes, the cult. Short for cultivation, which is a provocative name. Join the cult. It's brilliant branding. It's their annual convention. But the timing is strategic genius. It's slated for July, 2026. Which is the United States 250th birthday, the semi-quince intennial. And where is the biggest party in America going to be that summer? Mount Rushmore, which is right down the road. So BHC is banking on the political halo. Exactly. Governor Rodin has invited Donald Trump, Dusty Johnson, who is running for governor on a high-tech jobs platform, is deeply involved. The eyes of the world will be on South Dakota. And this is a tricky area for brands usually. Politics is so polarized. But jobs and American competitiveness, those are usually safe zones. Right, BHC is positioning itself as the economic success story that every politician wants to stand next to. Doesn't matter if you're red or blue, everyone wants to say they help create jobs in rural America. So if you're a sponsor of the cult, you aren't just at a tech conference. You are at the epicenter of a national political moment. You get to stand next to the success story. They have sponsorship tiers, presenting sponsors at $50,000 down to product placement. But they're also looking for local partners, breweries, for example. Like Cropique, Los Gaben, the local staples. Tap takeovers. Imagine being the official beer of the AI revolution. It's just... It's fun. It has so much more energy than a standard banner ad at a convention center in Vegas. And you mentioned caller is involved too. Yes, caller is providing the clothing for the employees. So the staff uniforms are essentially high-end branded workwear. It creates a whole cohesive look. Well, let's look at the math because that's what the marketing directors listening need to justify to their CFO. But we need to compare traditional sponsorship to this BHC model. Okay, let's run the numbers. Traditional sponsorship at a major tech conference. You pay 50 grand for a booth. You get your logo on a tote bag and a banner for three days. And you have to pay for your team's travel, the hotel, the setup, all of it. The conference ends. The banner goes in the dumpster. The tote bag ends up in a closet. The ROI stops the moment the door is closed. Versus the BHC sponsorship. You donate 50 grand worth of equipment, or cash. It is permanently installed in a campus that is growing. It's used every day. It is in videos for years. It never goes in the trash. Plus, there's a tax angle here that we shouldn't overlook. Right, the seed foundation. Explain how that structure works. BHC has a 501C3 non-profit arm that handles the K-12 education. They're teaching AI literacy to local schools. So if you donate equipment or capital, it can be structured as a charitable contribution to the foundation. So you're getting marketing exposure, permanent placement, and a charitable tax deduction. It's the no waste principle again. And they emphasize this point. Because tourist revenue from the cafe and merch sales pays for the employee culture and overhead, 100% of the sponsor contributions go to infrastructure or the mission. You aren't paying for their lunch. You're building the gym. That transparency is rare. Usually sponsorship feels like a black hole where you aren't sure where the money actually goes. So if I'm a brand listening to this, and I'm thinking, okay, this sounds interesting, but I need to see it. What's the actual process? How do I close this deal? It's surprisingly direct. They don't want a Zoom call. They want you to come see it. Step one, fly your marketing team to Custer. Boots on the ground. Exactly. Step two, see the campus. Meet the 60 employees. See the kids learning AI. Verify that the story is real. Step three, appear on the podcast yourself. You have to do the podcast too, even during the pitch phase. Everyone does the podcast. It's their litmus test. You have to make the case on air for why your product fits the ecosystem. Why is your projector the right one for the future of rural America? That's clever. It forces the brand to articulate their own value proposition in the context of the BHC mission. And step four, if it's a fit, you donate or discount the gear. And I get the sense there's a ticking clock here. Huge urgency. It's the first mover advantage. The story is being written now. The campus is being built now. They're taking kids immediately. Meaning, if you wait six months to run it up the flagpole, the gym might already be the Rogue Fitness Center and you missed out. Or the auditorium is already the anthropic hall. Exactly. You can't buy the naming rights after someone else's bolted their sign to the brick. Once the physical asset is branded, it's gone. You know, what strikes me about this whole proposal is the contrast in how companies spend their money. We talked about those massive $700 million marketing budgets at the beginning. Most of that money is spent on defense. It's spent apologizing. It's spent trying to convince people that AI isn't scary, that it's not going to ruin the world. It's all reactive. And VHC is offering a way to spend a tiny fraction of that, literally the cost of some furniture or gym equipment to be proactive, to build something. To be the hero. That's the hook. You can spend your marketing budget apologizing for the future. Or you can spend it to outfit the headquarters where the future is actually happening. It's a compelling choice. Do you want to be the brand that bought a banner ad or the brand that built the gym where the people saving rural America work out? It's tangible versus a femoral. I think for the right brand, this is a no-brainer. I know which one I'd pick. If you're listening and you have the Georgians, tech, furniture, coffee, cars, get in touch with Luke Alverez, the email is Luke at blackhillsconsortion.org. Go see the campus. And join the flywheel. Exactly. Join the cult. I mean, the cultivation. Thanks for listening to The Deep Dive. We'll see you in the Black Hills.