Tech
‘Too early’ to talk IPO, Redwood Materials’ incoming CFO says
Redwood Materials has finally found a new chief financial officer roughly a year-and-a-half after its last one departed, and he’s a familiar face to the former Tesla executives running the battery recycling and energy storage company.
On Monday, Redwood Materials said it has hired former Tesla finance chief Deepak Ahuja as its new CFO. Ahuja joins an executive team that includes Tesla’s former CTO (JB Straubel, Redwood’s founder and CEO), and former Tesla powertrain vice president Colin Campbell (Redwood’s CTO), among a number of other Tesla expats throughout the ranks. Most recently, Ahuja was chief finance and business officer at drone company Zipline.
But despite Ahuja’s many years running Tesla’s finances, and a hot IPO market for anything remotely related to AI data centers, he tells TechCrunch that it’s “too early” to talk about going public.
“Naturally, an IPO is a potential outcome for any private company, and we’ll talk about it when the time is right,” he said. Part of his caution, he said, was because Redwood Materials has so far had no trouble raising money from blue-chip investors. The company in January closed a $425 million Series E funding round that brought its total capital raised to more than $2 billion, and its valuation to over $6 billion. It also added Google and Nvidia’s venture arm to its cap table.
“Redwood has, I’d say, the crème de la crème of investors already, who do have deep pockets,” Ahuja said. “If they’re excited, they’ll fund. But I also expect that new investors will see what Redwood is doing, and they’ll get equally excited, and will want to come in and invest and offer us, perhaps, good terms as well.”
Ahuja’s appointment comes a pivotal moment for Redwood Materials. The company recently lost its chief operating officer (another former Tesla exec) to retirement, along with at least three other vice presidents, Those executives left amidst a restructuring that affected 10% of its workforce (or around 135 employees), as TechCrunch first reported last month, while the company shifts resources toward its rapidly-growing energy storage business.
Ahuja told TechCrunch he is “excited by very innovative technology solutions that impact our climate [and] that address our energy needs,” and that he’s stayed close with Straubel since the pair left Tesla in 2019. In fact, Ahuja told TechCrunch that he’s a “small investor” in Redwood Materials.
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“In so many ways, it felt like a natural fit, in terms of the energy storage business, the recycling business — all of these are such critical needs for our country and our society that it felt like the right place to be,” he said.
There is an undeniable amount of hype around AI, with SpaceX about to go public, OpenAI and Anthropic rumored to be considering IPOs, and billions of dollars being raised to build data centers. Redwood’s energy storage business is initially targeted at helping AI data centers manage their power loads, though Ahuja said he’s not worried about getting swept up in the exuberance.
“I think JB and I both have seen so many cycles of hype and disillusion in our lives that we’re going to be very mindful and conscious of how we message, how we manage, and how we grow the company,” he said. “We’re dealing with hardware here, which, by definition, brings a certain degree of sanity” compared to what’s happening at the software-focused AI companies, he added.
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Tech
Planned Amazon data center could become the biggest climate polluter in the U.S.
As part of a planned data center in Pecos County, Texas, Amazon is investing in an on-site power plant that could become the largest source of climate pollution in the United States, according to The New York Times.
The NYT says the plant would burn natural gas and is permitted to release 33 million tons of carbon dioxide per year — more than any other power plant in the U.S.
In a statement, an Amazon spokesperson confirmed that the data center will “be powered by new on-site generation that won’t raise electricity costs for Texas families.” (Data centers face growing political opposition for a number of reasons, including their effect on electricity costs.)
AI has already had a significant impact on Amazon’s carbon emissions, which it reported were up 16% last year — the wrong direction for a company that pledged to eliminate its carbon emissions by 2040. And that could get worse as Amazon and tech companies back the development of huge natural gas plants to support their power-hungry data centers.
The Amazon spokesperson said, “The world looks different now than when we co-founded the climate pledge,” while also claiming, “Our commitment hasn’t changed.”
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Tech
OpenAI acquires presentation startup NextSlide
NextSlide recently announced that it’s joining OpenAI, with the presentation startup’s team members now working on ChatGPT.
The NextSlide website currently displays a note from founder Ahmed Beshry describing the startup’s product as one “that could turn prompts, notes, documents, or research into a polished, editable presentation.”
The ultimate goal, Beshry said, was “to make visual communication more accessible and help more people express their ideas clearly.” So by joining OpenAI, the team will “continue pursuing that same mission: building AI products that help people create, communicate, and turn their ideas into meaningful work.”
The financial terms of the deal were not disclosed. In a note on LinkedIn, Beshry said the announcement is coming “a few months late,” as the acquisition took place “earlier this year.”
Beshry was previously a co-founder at Caper AI, a smart cart/cashier-less checkout startup acquired by Instacart in 2021.
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Tech
X replaces ‘misaligned’ revenue sharing program with Original Content Rewards
X, the social media platform now owned by Elon Musk’s SpaceX, is shaking up how it pays influencers and creators.
In announcing the change, the company said it will be winding down its existing Revenue Sharing program and replacing it with something called Original Content Rewards. X will stop accepting new Revenue Sharing participants, while existing participants will continue earning money through September 7.
Then, starting on September 8, they’ll be able to apply for the new program. Participants will still need to subscribe to one of X’s Premium tiers, and there will be qualifying thresholds for follower count (500 verified followers) and impressions (500,000 Home Timeline impressions from verified users in 90 days), but it sounds like the big change is the emphasis on originality.
What counts as original content? X said it can include original reporting and analysis, photos and videos created by the poster, or memes and graphics they’ve designed themselves. Commentary also counts, but “if your content regularly incorporates material created by others, you’ll need to contribute meaningful original value for it to qualify under our original content guidelines.”
The company also included examples of posts that won’t count as original, such as those just copied over from another account, downloaded from one account and re-uploaded to your own, or reposting content “without meaningful transformation.”
This announcement follows repeated attempts by X to reform the Revenue Sharing program, for example reducing payments to aggregators and “clickbait” accounts in April. But these efforts have also prompted complaints from popular accounts profiting from the current system; Musk even reversed some of those changes (giving a creator’s local audience more weight when calculating payouts) after a backlash.
In a post about the new changes, X’s Allegra Jacchia wrote that the existing program “had reached a point where its incentives were misaligned.”
“Creators should be focused on bringing net new content to the platform instead of maximizing payouts,” she said. “We could have kept adding more rules and exceptions, but ultimately the better decision was to start fresh and build a program designed from day one to reward originality.”
Jacchia added that X be “continue refining the program, improving our models, and raising the bar over time.”
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