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Elon goes vertical with mobile gas turbines

Deals of the week

Temperature check

Number of the day: 40 GW 🤯

Elon Musk, the king of vertical integration, has apparently bought mobile gas turbine operator APR Energy for up to $1 billion.

Why it matters: Data centers are racing to procure power, and Musk has figured out a controversial way to move faster than the rest.

Zoom in: The deal surfaced through a Federal Trade Commission early termination notice from mid-May, first reported Tuesday by the Jacksonville Florida Times-Union and echoed across the internet.

The implied valuation of the deal came from APR minority shareholder Duos Technologies, which received $50.4 million for a 5% stake, per Electrek.

Yes, but: There's a lot unknown about the sale, the valuation and the plans for APR.

Catch up quick: Musk previously bought a bunch of mobile gas turbines to power Grok's data center in Tennessee.

It was a controversial move that was hit with a lawsuit for allegedly violating the Clean Air Act. Gas turbines emit local air pollution, in addition to carbon emissions.

But Grok's data center was up and running off-the-grid in record time, validating his idea, and showing that he didn't need slow-moving utilities to deliver him power.

Katie's thought bubble: It seems Musk took that idea and expanded it with vertical integration, snapping up APR Energy and likely lowering the ultimate cost and time of delivering electricity even more.

Musk has vertically integrated traditional industries that many thought impenetrable, like auto and rockets, so why not power generation.

It's no small irony that Musk, once a solar champion, is now leaning into one of the dirtier ways to power data centers.

🔌 Scoop: Voltus, an operator of virtual power plants, is raising $50 million to $100 million. Go deeper

💵 Standard Nuclear's CEO on pushing ahead with a downsized IPO. Go deeper

⚛️ Standard Nuclear, which makes fuel for advanced reactors, raised $150 million in its IPO on Wednesday. Go deeper

⚡️ Scoop: Astro Mechanica, a developer of turboelectric supersonic jet engines, is raising $250 million in Series B funding. Go deeper

🔋 Exclusive: Canadian battery maker Electrovaya has secured a commercial agreement and warrant transaction with Amazon. Go deeper

⛏️ BHP is leaning into an accelerator program to tap startups and tech innovation as demand for critical minerals like copper soars. Go deeper

🍎 The California teachers' pension system is allocating $2 billion to asset manager Nuveen to finance low-carbon infrastructure. Go deeper

💰 Scoop: Emerald AI, which develops data center management software, is raising roughly $100 million at an anticipated post-money valuation topping $1 billion. Go deeper

📈 General Fusion began trading Monday at $12.85 after completing its SPAC merger with Spring Valley Acquisition Corp. III. Go deeper

🤗 Inertia opened its headquarters in Livermore, California. Go deeper

1 big thing: Elon goes vertical with mobile gas turbines

Photo illustration of Elon Musk with money falling all around. 

Photo illustration: Aïda Amer/Axios. Photo: Marc Piasecki/Getty Images

👉 GO HERE TO CATCH UP on energy and climate deals this week.

Walden Robotics, a Cambridge, Mass.-based robotics startup, raised a $300m round that values the company at $1.1b. Toyota and Deviation Capital co-led, joined by Nvidia, Boeing, AE Ventures, Samsung Ventures, Prologis Ventures, CoreWeave Ventures, and financial partners Calibrate Ventures, Colle Capital, Shine Capital, NextView Ventures, Squarepoint Capital, One Madison Group, KAS Venture Partners, and Menlo Ventures. Go deeper

TerraFirma, an Austin, Texas-based interplanetary construction startup, raised $115m, including a $100m Series A. Kleiner Perkins led, joined by Bain Capital Ventures, Glade Brook Capital Partners, BANNER VC, Saga Ventures, Trust Ventures, Definition, PEAK6, Magnetar Capital, and Ravelin Capital. Go deeper

Senra Systems, a wire-harness startup, raised $65m in Series B funding co-led by Interlagos and Lowercarbon, per Axios Future of Defense. Alumni Ventures, Andreessen Horowitz, Founders Fund and General Catalyst joined. Go deeper

2. Deals of the week

Illustration of an electric plug in the shape of a lasso around the words "Energy and climate deals roundup"

Illustration: Sarah Grillo/Axios. Stock: Getty Images

⛔️ BP closing its VC arm: The energy giant is planning to close BP Ventures and divest stakes in over 10 companies amid a pivot back to oil and gas, Ben Geman writes in Future of Energy.

The development confirms Axios Pro reporting last year. BP will "retain interests in a small number of investments," the company said. BP Ventures backed startups in EV charging, grid tech and vehicle autonomy, among other sectors.

🥴 Power price pain: Electric and natural gas utilities asked state regulators to approve a combined $9.2 billion in rate increases in filings made between April and June, Ben also reports. 

🍺 Heineken's heat batteries: The Dutch beer maker is deploying batteries from thermal-storage startup Rondo Energy at a brewery near Lisbon.

Beer makers need high temperatures to produce steam for brewing and pasteurization, per WSJ, which reported on the Rondo partnership. The Rondo system, expected to reach full capacity in 2028, will use wind and solar power to heat clay bricks to 1,500 degrees Celsius.

📉 Lucid's future: Shares of Lucid Group plummeted Tuesday after a report that the Saudi-backed electric vehicle maker is weighing a bankruptcy filing as part of a possible restructuring, reports Axios' Nathan Bomey. 

The company quickly denied the report, saying that "the rumors are completely false," after which its stock recovered some ground.

3. Temperature check

Illustration of a thermometer shaped like a smoke stack with smoke spewing out.

Research firm SemiAnalysis projects over 40 GW of behind-the-meter power at U.S. data centers by 2028, most of it gas turbines, reciprocating engines and fuel cells.

July 18, 2026

1 big thing: Elon goes vertical with mobile gas turbines