Cleantech veteran hopes to "turn AI energy crisis on its head"
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As founder of one of the buzziest startups at the intersection of energy and AI, Varun Sivaram is having a moment.
Why it matters: His company, Emerald AI, just landed its first commercial deployment and announced new funding — all while Sivaram was named to Time's Climate 100 and released a TED Talk.
The big picture: Emerald AI sits at the forefront of a nationwide — and increasingly global — race to build data centers at breakneck speed and to power their enormous electricity demand.
- "My hope comes from turning the AI energy crisis on its head," he told Time.
- "While the narrative is often about AI's massive and problematic electricity consumption, I see something different: the emergence of the single greatest tool we've ever had to manage a clean energy grid."
Driving the news: In addition to the Time accolade, just in the last week:
- A coalition led by Nvidia announced the first commercial deployment of Emerald AI's software at a data center in Virginia.
- Emerald AI announced $18 million in additional seed money (after coming out of stealth in July to announce $24.5 million).
- And his TED Talk is publishing on Monday.
How it works: The startup's software adjusts energy draw in real time — a model Sivaram and partners say can ease strain on the grid and curb electricity costs.
Catch up quick: At 36, Sivaram is already a cleantech veteran.
- A physicist by training, he's led innovation at offshore wind giant Ørsted and served as a senior aide to U.S. climate envoy John Kerry under President Biden.
Between the lines: Sivaram founded Emerald AI in November last year, and it's already well on its way to commercialization.
- It's a fast path typical of software companies — but not climate tech.
- Most high-profile climate tech startups over the past decade have been seeking to commercialize big and expensive infrastructure that is proving it takes many years (if ever) to come to fruition.
This focus on software was intentional, Sivaram tells Axios.
- Almost all cleantech companies that have actually made their investors money have been software companies, Sivaram said.
Flashback: Venture capital isn't well-suited to invest in capital-heavy startups given the long time they need to make a profit, Sivaram said in a controversial report he co-published in 2017.
Reality check: Venture capitalists have intentionally chased those high-risk, high-reward climate bets — aiming for massive returns in both profits and emissions cuts.
- So far, those big payoffs haven't arrived.
The intrigue: Sivaram's latest venture flips the script. While AI is fueling huge new electricity demand, he sees it as a flexible, software-driven load that can help manage the grid rather than strain it.
- "AI has this amazing load that is actually virtually controllable, and software can have a huge impact on the energy consumption pattern," Sivaram said.
What we're watching: Sivaram isn't in a rush to go public or sell, he says.
- "The goal is not a quick exit but to create far more value through disciplined and long-term execution," said Sivaram, adding that he wants to make "Emerald AI my life's work."
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