Octopus Energy will spin off Kraken, the AI technology platform created by the firm, into a standalone company led by new senior appointments.
One of the largest energy providers in the country, Octopus in part made its name off the back of Kraken, an end-to-end platform that automates much of the energy supply chain.
Though developed as internal technology, the licensing of Kraken to other energy companies, including EDF, E.ON Next and National Grid US, has been a major revenue driver.
At the time of the spin off announcement, Kraken has reached $500m (£366.7m) in committed annual revenue through its licensing deals, quadruple what it was three years ago.
“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,” said Greg Jackson, founder of Octopus Energy.
The separated Kraken company will be run by chief executive Amir Orad, who has led Kraken as a department within Octopus since July 2024.
“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 is a strategic and inevitable next step,” Orad said.
“It gives us more freedom to invest, expand, and serve our utility clients equally. We’ll keep pushing innovation in the cloud, advancing our utility-grade AI and harnessing vast amounts of energy and grid data, while ensuring structural clarity for customers, investors, and partners.
“We are aiming to accelerate the energy transition and positively impact people around the world. This is an exciting next chapter for Kraken.”
Kraken has appointed Tim Wan as chief financial officer, who joins the company from workplace software group Asana.