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By Nikki Cabus

Open AI CEO Sam Altman invests in South Florida AI data center energy startup Exowatt

Read Time 4 Minutes

Exowatt, a next-generation renewable energy company, unveiled a first-of-its-kind modular energy platform designed to power energy-intensive data centers along with a $20 million seed round from a16z, Atomic, and Sam Altman.

As the boom in AI technology escalates both the demand and the energy costs for data centers, Exowatt’s solution arrives at a critical time.

Exowatt, headquartered in Miami, is a next generation renewable energy company providing commercial and industrial customers with modular energy solutions tailored for energy-intensive applications like data centers. Founded in 2023 by Hannan Parvizian and Atomic CEO Jack Abraham, Exowatt’s mission is to make sustainable renewable energy always available and almost free. Exowatt is backed by a16z, Atomic, and Sam Altman.

Exowatt’s flagship product, the Exowatt P3, represents a significant innovation in energy technology. It consists of a modular, 3-in-1 system, a heat collector, a heat battery, and a heat engine capable of providing dispatchable power and heat throughout the day. Unlike traditional solar panels that convert sunlight into electricity directly, Exowatt uses a unique approach by storing solar energy in a thermal battery, which can retain this energy for up to 24 hours per day. The Exowatt P3 modules are designed to fit the space of a standard 40-foot shipping container. They can be deployed on small and large commercial and industrial projects, linearly scaling with workload size and infrastructure requirements.

“Unlike traditional solutions that require significant upfront costs and extended setup times, Exowatt’s modular system can be deployed rapidly and cost-effectively – and it’s available this year,” said Exowatt CEO and Co-Founder Hannan Parvizian.

“Exowatt is built to respond quickly to the escalating energy demands of the modern world, especially those spurred by the rapid growth of AI.”

Exowatt’s approach involves storing heat instead of electricity, allowing it to store energy at a fraction of the cost of electrochemical batteries and without any supply chain dependency on scarce rare earth materials. Its heat engine design will enable it to dispatch electricity 24 hours a day, ensuring that Exowatt’s energy solutions are reliable around the clock, regardless of weather conditions.

As its technology scales, Exowatt expects to be able to offer electricity for as low as $0.01 per kilowatt-hour, or even less in some cases, which will make it lower cost than fossil fuels and other renewable energy alternatives.

“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. Our mission is to provide extremely low-cost energy that advances the capabilities of global AI infrastructure while protecting our planet.”

Founded in 2012, Atomic is the venture studio headquartered in Miami that pioneered the model of starting companies by pairing founders with the best ideas, teams, and resources and funding those with the most potential. When entrepreneurs co-found with Atomic, they team up with an experienced group of operators who have started dozens of companies and created billions of dollars in enterprise value. Companies like Butter, Found, $HIMS, Homebound, OpenStore, and Replicant were started at Atomic along with dozens more.

Jack Abraham and Hannan Parvizian founded Exowatt at Atomic to tackle the significant energy needs of AI and data centers. Hannan brings extensive experience from the energy sector and a background in building complex hardware products at scale, having worked at Tesla, General Electric, and Siemens and founded and sold a company that developed and sold advanced delivery drones. Jack has started dozens of companies and built Atomic into the leading venture studio, with a vision to identify some of the world’s biggest problems and build companies to solve them.

“Exowatt is an innovative company helping to meet our country’s growing energy needs,” said Katherine Boyle, General Partner at Andreessen Horowitz. “By committing to full U.S. manufacturing with domestically sourced components, Exowatt will significantly strengthen our national infrastructure and resilience.”

Andreessen Horowitz (aka a16z) is a venture capital firm that backs bold entrepreneurs building the future through technology. They are stage agnostic investing in seed to venture to growth-stage technology companies, across AI, bio and healthcare, consumer, crypto, enterprise, fintech, games, and companies building toward American dynamism. a16z has $42B in assets under management across multiple funds.

Exowatt has a backlog of demand for over 500 megawatts for data centers across the U.S. and plans to begin deployments later this year. With this $20 million seed funding, Exowatt intends to expand its team and deploy the Exowatt P3 with its first set of data center customers.

To learn more about Exowatt, visit www.exowatt.com

By Nikki Cabus

Miami-based Atomic Venture announces new $320 million fund and addition of 3rd GP

Read Time 3 Minutes

Atomic Ventures, a Miami-based VC firm just announced that they have raised their 4th and largest fund to date at $320 million.

The fund will be used to found new startups the firm will create and further fund existing portfolio companies. The last fund raise of $260 million back in 2021, created more than a dozen new companies with several of them right here in South Florida. The recent fund brings Atomic to over $750 million in total assets in management, the largest venture studio fund in the technology industry.

Atomic does things a little differently than most VCs, They only writes checks to startups it spins up itself. The firms is said to have a list of hundreds of ideas in which they find co-founders for and then invest in. Atomic brings ideas, capital, resources, and talent together—partnering with co-founders to build the best ideas into great companies. They found AND fund companies.

“I think this is the best time potentially in history to be building a company,” said Jack Abraham, the founder, CEO, and managing partner of Atomic, during their recent 2023 Builders Summit.  He continued, “Historically, the best and biggest companies are built during downturns.”

Abraham discussed the advantages such as less noise, less competition and more available talent. He also highlights the potential for technology to disrupt and innovate every facet of life and how entrepreneurship can address major issues such as healthcare and energy.

He stresses the importance of great talent stating that “the talent availability in tremendous” with tons of talent coming through their doors. So much, that the company is having a hard time processing all the applicants.

Jack moved to Miami in July 2020 for the opportunity to build new startups and has since brought along our General Partner, Chester Ng and COO, Healey Cypher, as well as several other key leaders from the Atomic team and from their broader portfolio of high-growth startups.

Atomic also recently announced the expansion of their team with the addition of  Kristin Schaefer as their third General Partner.

Kristin was previously the CFO at Postmates. She joined as the tenth employee, building out growth, analytics, finance, and, eventually, as CFO, leading the company’s near-IPO process and ultimate acquisition by Uber for $5 billion – with a B. As an angel investor in Postmates, Jack said there would have been no way the company would have become a $1B revenue run-rate company that raised nearly $1B in funding without the support of Kristin.

Before Postmates, Kristin worked at PayPal for David Marcus’s strategy team and Clarium on Peter Thiel’s global macro investment strategy.

Over the past year, Atomic Ventures has grown to a team of over 75 builders, started 16 companies and secured funding to fuel the growth of some of the most exciting and promising startups yet. One of which is based right here in Miami: OpenStore.

Founded in 2021, OpenStore is a way for Shopify entrepreneurs looking to sell their eCommerce businesses quickly and easily in just a matter of days. OpenStore has been able to acquire dozens of businesses representing millions of dollars in deal flow. With their $32 million round in 2022, OpenStore now has total equity funding over $150 million from investors that include Atomic, Founders Fund, General Catalyst and Khosla Ventures.

With the new wave of exciting AI companies, Atomic Ventures also recently welcomed two new fellow entrepreneurs as VPs, Lauren Dickstein and Michael Stenclik, alongside Jordan Kong, Phil Liu, and Sharon Winter.

Click here to learn more about Atomic and what they look for in their co-founders.

Open AI CEO Sam Altman invests in South Florida AI data center energy startup Exowatt
Miami-based Atomic Venture announces new $320 million fund and addition of 3rd GP