Octopus Energy Kraken Spin-off 2026: AI Unit Valued at $8.65B in Funding
Octopus Energy plans to spin out its AI unit Kraken by mid-2026 after a $1B funding round. Discover how Kraken hit an $8.65B valuation and its path to a potential IPO.
$1 billion war chest has officially put Kraken Technologies on the fast track to independence. British renewable energy giant Octopus Energy is preparing to spin out its AI-driven tech unit, setting the stage for a potential public listing by mid-2026.
The Octopus Energy Kraken Spin-off 2026 Strategy
Origin Energy, a major stakeholder in Octopus, announced that Kraken secured its first standalone funding round at an $8.65 billion valuation. The round saw participation from D1 Capital Partners and an unnamed major customer. Origin Energy also chipped in $140 million to maintain its interest in the software-focused powerhouse.
- Targeting 100 million customer accounts globally.
- Annual recurring revenue (ARR) more than doubled over the last 18 months.
- Supplying tech to major utilities like EDF and E.ON.
Becoming the Operating System for Utilities
Kraken's goal is simple: to become the pure-play software 'operating system' for the global energy sector. CEO Amir Orad emphasized that the separation will allow the company to attract long-term software investors. Following the spin-off, Octopus Energy will retain a 13.7% stake, while Origin's stake will sit at 22.7%.
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