Octopus Energy Spins Off AI Platform Kraken

Octopus Energy is spinning off its AI platform Kraken into a standalone company that could be worth up to $15 billion.

Kraken was already awake, but this latest aim is to build the world’s most valuable utility AI company. Kraken has reached $500 million in committed annual revenue, four times what it was three years ago, and it is connected to more than 70 million household and business accounts worldwide.

“I set the embarrassingly low goal of 100,000,000 accounts by 2027. It looks like it’ll beat that and can now aim to serve a billion people over the next decade,” said Greg Jackson, Founder of the Octopus Energy Group, in the announcement.

An energetic AI platform

Kraken is not a billing tool in a new coat of paint, it is an AI-powered operating system that processes five billion data points daily. The separated company will be led by CEO Amir Orad, who has headed Kraken since July 2024, with Tim Wan joining as CFO from workplace software firm Asana.

Licensed to major utilities like EDF, E.ON, Next, TalkTalk and National Grid U.S., the platform struck a deal with National Grid in the United States to serve 6.5 million customers in New York and Massachusetts. It is not just about billing either, it uses simulation tools to forecast asset performance and manages over a gigawatt of electricity through smart devices.

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Kraken could go public with a London or New York listing within the next 12 months, according to reports. Spinning it off also clears the air, removing perceived conflicts of interest for utilities that did not want to buy software from a competitor.

The AI platform aims to hit 100 million customer accounts by 2027, up from roughly 70 million now. Its AI assistant Magic Ink has summarized over 6.2 million calls and generated 9.4 million messages. Today, around 35% of customer emails are drafted with AI support, hitting 70% customer satisfaction ratings.

What this means for the future of energy

This move is more than corporate housekeeping, it marks AI stepping into the control room of global energy infrastructure. The UK government estimates AI-driven flexibility could save at least £10 billion a year in grid costs by 2050.

Independence has the potential to accelerate Kraken’s expansion and, if momentum holds, cement it as the software backbone of the energy transition.