British renewable energy group Octopus Energy is preparing to spin out its AI-powered software arm Kraken Technologies, following the completion of a $1 billion standalone funding round that values the business at $8.65 billion. The transaction positions Kraken for potential public market access, with a separation targeted for mid-2026, according to major shareholder Origin Energy.
The funding round included participation from D1 Capital Partners, a major unnamed Kraken customer, and a $140 million investment from Origin Energy. Post-spinout, Octopus Energy will retain a 13.7% stake, while Origin will hold 22.7%.
Led by CEO Amir Orad, Kraken delivers AI-driven operating systems for utilities, serving customers such as EDF and E.ON, and has seen contracted annual recurring revenue more than double over the past 18 months.
