tech

December 30, 2025

UK's Octopus Energy to spinoff AI unit Kraken at $8.65 billion valuation

British renewable energy startup Octopus Energy is set to spin out its AI tech unit Kraken Technologies, as an independent company valued at $8.65 billion.

UK's Octopus Energy to spinoff AI unit Kraken at $8.65 billion valuation

TL;DR

  • Octopus Energy is spinning out its AI tech unit, Kraken Technologies.
  • Kraken Technologies raised $1 billion in its first standalone funding round.
  • The company is valued at $8.65 billion following the investment round.
  • Origin Energy, a major stakeholder in Octopus, confirmed the funding and spin-out plans.
  • The separation of Kraken is targeted for mid-2026.
  • Investors included a major unnamed Kraken customer and D1 Capital Partners.
  • Origin Energy will invest $140 million in the process.
  • Octopus Energy will retain a 13.7% stake in Kraken, and Origin will hold 22.7%.
  • Kraken supplies energy software to utility companies like EDF and E.ON.
  • Kraken's contracted annual recurring revenue has more than doubled in 18 months.
  • Kraken's CEO mentioned the possibility of a public listing in the future.

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