AI Has an Energy Problem, Exowatt Plans to Solve It

AI Has an Energy Problem, Exowatt Plans to Solve It

Miami-based Exowatt, founded by Hannan Parvizian and Jack Abraham, has unveiled a first-of-its-kind modular energy platform designed to provide reliable, cost-effective, and sustainable power for energy-intensive applications like data centers. The company's launch comes with a $20 million seed round from prominent investors, including Sam Altman, Andreessen Horowitz (a16z), and Atomic.

Exowatt's flagship product, the Exowatt P3, is a modular, 3-in-1 system consisting of a heat collector, a heat battery, and a heat engine. Unlike traditional solar panels that convert sunlight directly into electricity, Exowatt's unique approach involves storing solar energy in a thermal battery, which can retain this energy for up to 24 hours. This innovative design allows Exowatt to store energy at a fraction of the cost of electrochemical batteries, without relying on scarce rare earth materials.

The Exowatt P3 modules, designed to fit the space of a standard 40-foot shipping container, can be deployed rapidly and cost-effectively on both small and large commercial and industrial projects. As the technology scales, Exowatt says it expects to be able to offer electricity for as low as $0.01 per kilowatt-hour, making it more affordable than fossil fuels and other renewable energy alternatives.

The launch of Exowatt comes at a critical time as the rapid growth of AI technology escalates both the demand and the energy costs for data centers. "AI models have been doubling in size every three months—a pace that requires significantly more data center power," said Jack Abraham, CEO of Atomic and Co-Founder of Exowatt. "In order to keep up with AI advancements, we need more sustainable energy solutions, which is why we started Exowatt."

Exowatt's commitment to full U.S. manufacturing with domestically sourced components not only strengthens national infrastructure and resilience but also positions the company to benefit from the subsidies provided by the Inflation Reduction Act. With a backlog of demand for over 500 megawatts for data centers across the U.S., Exowatt plans to begin deployments later this year.

The $20 million seed funding will enable Exowatt to expand its team and deploy the Exowatt P3 with its first set of data center customers. As the AI industry grapples with its massive energy consumption, Exowatt's innovative solution offers a promising path towards sustainable, low-cost energy that can power the future of AI without harming the planet.

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