Illustration: Sarah Grillo/Axios
Axle, an AI energy startup, raised a $1.6 million pre-seed round led by Picus Capital.
Why it matters: As the electricity grid cleans up and adds energy devices like EVs and heat pumps, it's becoming more complex. Energy providers will need better software using AI to manage how these energy machines will work together.
Details: Picus Capital led the round, which also included Eka Ventures. Axle was founded only in early 2023 and has four employees.
- The company plans to use the funding to develop its software to cover more energy devices like solar and batteries, as well as move beyond the U.K. market.
- "Energy is one of the last industries to be digitalized. It’s a bit in the mainframe era," said Karl Bach, CEO and co-founder of Axle.
How it works: Axle has developed AI that can connect EVs and heat pumps to unregulated energy markets (common in the U.K., Europe and Texas).
- Axle's AI doesn't use any hardware, which means it can keep its costs low.
- The algorithms can help the owner of the EV or the heat pump save money on their electricity bills.
Bottom line: It's still early days for utilities and energy service providers to use software to manage home devices. But AI will play a key role in driving these systems.
