TL;DRFormer Meta CTO Mike Schroepfer’s Gigascale Capital raised a $250 million fund focused on energy, grid infrastructure, and critical minerals startups. The fund bets that AI’s energy demands will make clean power startups the real winners of the AI boom.
Gigascale Capital, the venture firm led by former Meta chief technology officer Mike Schroepfer, has raised a $250 million fund to invest in energy, grid infrastructure, and critical minerals startups. The fund, announced on Monday, is Gigascale’s second and its first to include institutional investors. It arrives as most of the venture capital industry has pivoted away from climate tech and toward AI, making Schroepfer’s continued bet on the physical economy a deliberate contrarian move.
“The companies we back win because they’re cheaper, faster, and more reliable,” Schroepfer said. “Climate impact is the result of better-performing systems.” The framing is notable: Gigascale is positioning clean technology not as a values-driven investment thesis but as an economic inevitability driven by performance advantages.
AI is the catalyst, not the competitor
The irony of a former tech executive raising a climate fund during an AI boom is less contradictory than it appears. US utilities plan to spend $1.4 trillion by 2030 to meet the electricity demands of AI data centres, which could consume 9% of the country’s total electricity by the end of the decade, up from 4% in 2023. Natural gas turbines, the default backup power source, have waitlists stretching into the early 2030s.
