Octopus Energy Spins Off Kraken AI Platform in $15B Move
Octopus Energy Launches Kraken as Independent AI Utility Platform
Octopus Energy, the UK’s leading renewable energy provider, has announced the spin-off of its technology platform Kraken. This bold move comes as Kraken secures $500 million in annual revenue commitments from global utilities and energy firms, setting the stage for a potential initial public offering (IPO) that could value the platform at $15 billion within the next year.
What is Kraken?
Kraken is an advanced billing, customer management, and AI platform originally developed by Octopus Energy to modernize energy utility operations. It leverages artificial intelligence to optimize grid management, billing, and customer support, and is already trusted by major energy providers worldwide.
- Global Reach: Powers over 7.7 million UK households and 2.8 million internationally.
- AI-Driven Insights: Uses AI to analyze massive datasets, helping utilities efficiently integrate renewables and distributed energy resources like EV chargers and home batteries.
- Full-Service Suite: Manages everything from billing and meter management to customer relations.
Why the Spin-Off?
According to Octopus, spinning off Kraken allows the platform to work more transparently with other utilities and power providers, minimizing potential conflicts of interest as its customer base grows beyond Octopus itself. The process began last year as interest from external partners surged.
Octopus Energy’s Rapid Rise
Founded in 2015, Octopus Energy has quickly overtaken British Gas—an industry stalwart of over 200 years—to become the UK’s largest energy supplier. This achievement is driven by a combination of innovative tech, smart marketing, and customer-centric products:
- Zero Bills: A program enabling homeowners to pay no energy bills for a decade if they purchase fully-electrified properties.
- Agile Tariff: Dynamic pricing that encourages customers to use electricity during periods of grid surplus, even offering free energy at times.
AI at the Heart of the Energy Transition
Kraken’s AI models process operational data to determine how increased renewable energy can be efficiently managed across the grid. This capability not only benefits Octopus Energy, but is now available to utilities worldwide seeking to accelerate their own digital and green transformations.
What’s Next for Kraken?
With the spin-off, Kraken is positioned as a neutral, industry-wide platform ready to power the digital transformation of global utilities. If the IPO proceeds as anticipated, Kraken could quickly become one of the most valuable technology platforms in the utility sector.
