Octopus Energy Group has announced it will spin off Kraken, its fast-growing AI-powered technology arm, in a move designed to accelerate its expansion into global energy markets.
Kraken, launched within Octopus in 2019, has become one of the most advanced operating systems for utilities worldwide. The platform is now contracted to manage more than 70 million household and business accounts and processes 15 billion new data points every day.
The spin-off is seen as a major strategic milestone for Octopus Energy, providing Kraken with the independence and capital to expand its technology offering, enter new markets, and attract fresh investment.
Octopus Energy has already reshaped the UK energy market, becoming the country’s largest energy supplier earlier this year with 7.7 million households now on its books. Kraken’s technology underpins that success, enabling flexible pricing, fairer billing, and improved customer service.
Globally, Octopus now operates in 27 countries, serving 2.8 million more customers across France, Germany, Italy, Spain, and Japan. Its wider business spans EV leasing, solar, heat pumps, and a £7 billion renewables portfolio.
Greg Jackson, Octopus Energy’s founder, said the spin-off reflects Kraken’s growth into a major tech business in its own right: “We set out to create Kraken as a global platform to transform utilities and deliver the innovation, service and value that customers deserve. I am so proud that the business is smashing it – and is now such a huge and successful company in its own right. It looks like it’ll beat my goal of 100 million accounts by 2027 and can now aim to serve a billion people over the next decade.”
Kraken has quadrupled its contracted revenue in three years and now boasts $500 million in committed annual revenues from licensing deals with some of the world’s largest utilities, including EDF, E.ON Next, National Grid US, Origin Energy, Plenitude, and Tokyo Gas.
Amir Orad, Kraken’s CEO, said the spin-off was a “strategic and inevitable next step”: “Octopus has been a phenomenal founding partner and first client. Kraken is now a globally successful business in its own right, operating independently for some time – completing our journey to full independence gives us more freedom to invest, expand, and serve utility clients equally.”
Kraken recently signed its first fully integrated US utility client with National Grid and has also launched a new solution tailored for commercial and industrial customers.
To support this next chapter, Kraken has appointed Tim Wan as its new CFO, bringing expertise from US software firm Asana, where he oversaw its successful IPO.
Orad said Kraken will now double down on cloud innovation, utility-grade AI, and energy data processing while ensuring “structural clarity” for customers, investors, and partners.
Kraken has emerged as a global leader in residential flexibility, managing more than 2GW of power from EVs, home batteries, and heat pumps. This flexibility helps balance electricity grids by shifting energy use to periods when renewable generation is high, cutting costs for consumers and reducing reliance on fossil fuels.
The spin-off is expected to help Kraken scale these capabilities faster, boosting its role in the energy transition at a time when utilities face soaring demand for digital solutions.
Orad added: “We are aiming to accelerate the energy transition and positively impact people around the world. This is an exciting next chapter for Kraken.”
Read more:
Octopus Energy spins off Kraken as $500m AI platform targets 1bn users