Britain’s biggest household energy provider Octopus Energy has announced that it will spin off its AI (Artificial Intelligence) technology arm Kraken, in the hope that this will accelerate the latter organisation’s expansion across the globe.
Kraken is responsible for an AI-powered software platform designed to serve energy and utility companies, with clients including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude, and Tokyo Gas. It has seen revenue quadruple over the past three years to reach $500 million per annum. The business is now contracted to serve over 70 million household and business accounts worldwide and has grown into the world’s most advanced data-driven operating system for utilities, processing 15 billion new data points a day.
The move adds further weight to speculation that Kraken, valued between $10 to $15 billion[i][ii], could list on the New York or London stock exchange as early as next year[iii].
In a press release Greg Jackson, Founder of Octopus Energy Group, has said: “We set out to create Kraken as a global platform to transform utilities and deliver the innovation, service and value that customers deserve. I am so proud that the business is smashing it – and is now such a huge and successful company in its own right”[iv]. He added that Kraken had significantly outperformed expectations, describing a previous target of 1 million accounts by 2027 as an ‘embarrassingly low goal’, with the firm instead aiming to serve a billion people over the next decade.[v]
Amir Orad, CEO of Kraken, commented: “Octopus has been a phenomenal founding partner and first client. Kraken is now a globally successful business in its own right, operating independently for some time – completing our journey to full independence is a strategic and inevitable next step. It gives us more freedom to invest, expand, and serve our utility clients equally. We’ll keep pushing innovation in the cloud, advancing our utility-grade AI and harnessing vast amounts of energy and grid data, while ensuring structural clarity for customers, investors, and partners. We are aiming to accelerate the energy transition and positively impact people around the world. This is an exciting next chapter for Kraken”[vi].
[i] Octopus Energy hires Goldman to sell minority stake in Kraken | Money News | Sky News
[iii] Octopus Energy hires Goldman to sell minority stake in Kraken | Money News | Sky News
[iv] Octopus Energy Group to spin off Kraken | Octopus Energy
[v] Ibid
[vi] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
