Tech
Geothermal startup Fervo Energy pops 33% in IPO debut fueled by AI data center demand
Fervo Energy, the geothermal energy startup, saw its market valuation surpass $10 billion in its public market debut, an increase driven by demand for AI data centers — and the energy that can power them.
Fervo had raised $1.89 billion in an upsized initial public offering on Wednesday, which initially valued the company at around $7.6 billion. Demand for Fervo stock was so great that the company and its bankers upsized the offering several times, selling an additional 14.6 million shares while lifting the price range twice, ultimately settling on $27 per share.
The stock, which trades under FRVO on the Nasdaq, popped another 33% when it first started trading Wednesday, pushing its valuation past $10 billion.
“We were asked a few times on the roadshow, ‘Why aren’t you raising more money?’” Sarah Jewett, Fervo’s senior vice president of strategy, told TechCrunch. “As we saw the demand come in, there were just enough signals pointing towards upsize being not only within the realm of possibility, but the realm of the encouraged.”
Like many other energy companies, Fervo has been buoyed by surging demand from data centers and AI companies, which have been desperate to secure electricity to power their facilities. It’s the second energy stock offering to receive a warm welcome in the last few weeks, with nuclear startup X-energy raising $1 billion in its own upsized IPO.
The basic concept of geothermal energy — using the Earth’s heat for power — has been around for decades, but Fervo is part of a new class of startups developing enhanced geothermal, which drills deeper to tap into hotter rocks. To make the most out of an attractive geothermal field, Fervo uses directional drilling techniques pioneered by the oil and gas industry.
“We’re repeating the playbook from the shale energy industry but with the answer key,” Jewett said.
Fervo’s IPO netted the company $500 million more than it anticipated, a cash cushion that will give the company more room to maneuver as it develops its Cape Station power plant in Utah, which is slated to begin operation this year. Ultimately, the company plans to generate 500 megawatts when Cape Station’s first phase is complete, which it expects will take around three years.
Cape Station’s 500 megawatt size was driven by the size of the grid connection the company was able to secure, but Fervo is permitted to develop 2 gigawatts of geothermal energy at Cape Station, and the company has applied to increase the size of its interconnection accordingly. Yet even that might be a conservative estimate. Jewett said a third-party engineer reported enough heat on site for up to 4 gigawatts of capacity.
The added electricity could flow to the grid if the interconnection size grows. But if it doesn’t, Fervo has been fielding inquiries from companies looking to connect directly. “We’re seeing an increasing amount of behind the meter commercial interest,” Jewett said.
Fervo is earlier in development on another project. Corsac Station in Nevada, from which Google will buy 115 megawatts of electricity.
Part of geothermal’s appeal is that the technology can provide so-called baseload power, a source that can generate electricity 24/7, regardless of weather conditions. Data center operators that value high uptime are willing to pay a premium these days for consistent power. That has helped turn geothermal from just another clean energy technology vying for space on the grid to a favorite among tech companies and, now, investors.
The Houston-based company has been racing to cut costs by reducing the amount of time it takes to drill a new well. Fervo’s first wells took dozens of days to complete and cost more than $1,000 per foot. After drilling 14 wells, the company has reduced both drilling time and cost per foot by two-thirds.
This IPO was perhaps overdue, though with rising interest in energy, its timing couldn’t have been better.
Fervo announced in December that it had closed a $462 million round, and climate tech and energy investors that TechCrunch spoke with late last year almost universally anticipated the company’s IPO. Demand from hyperscalers coupled with data from its Cape Station project suggested the company had made it through the “valley of death.” With an IPO in its rearview, it seems Fervo is now firmly on the other side.
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Tech
OpenAI reportedly in talks to raise $30B round at $1.4T valuation
OpenAI is in talks with investors to raise at least $30 billion in a pre-IPO funding round at a valuation of roughly $1.4 trillion, Bloomberg reported on Tuesday.
Investors are eager to pour more funds into the ChatGPT maker ahead of its anticipated public market debut next year. While Anthropic momentarily outpaced OpenAI at the start of the year, recent strategic refocus on key areas like coding has fueled a 70% jump in run-rate revenue since July, reaching $40 billion in August, according to the report.
The company previously raised $122 billion in March at an $852 billion valuation. That funding round was supposed to be its last private raise before an IPO, which had been, until recently, expected to take place this year. However, CEO Sam Altman has now ruled out a public debut in 2026 to prioritize AI safety first.
“I think it is unacceptable to be taking like a 10% chance of killing everybody by the end of the decade,” he recently told Fortune, in response to warnings from safety researchers about AI posing an existential risk to humanity.
The new fundraising, if it transpires, will serve as a bridge round to the IPO, according to Bloomberg.
OpenAI didn’t respond to TechCrunch’s request for comment.
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Tech
America.gov gets really weird when you ask it about Minecraft, but it’s not a glitch
The U.S. government on Tuesday launched its very own AI chatbot — or do we have to call it an SI chatbot now? Regardless, the engineers who worked on the chatbot would undoubtedly know that, as a government-hosted, public-facing AI tool, the internet was going to red team the heck out of this thing.
The government partnered with Google and SpaceXAI to help build the America.gov chatbot, which has proved difficult for people to jailbreak the chatbot so far. (It’s worth nothing, however, that the chatbot says that Joe Biden won the 2020 election, a fact that President Donald Trump still denies.)
But when you try to talk to America.gov about Minecraft, the chatbot appears to have some sort of existential crisis or awakening. Here’s how its roughly 1,800-word long monologue begins:
I see the constituent you mean.
((insert legal name here, as it appears on the Social Security card))?
Yes. Take care. It has reached a higher level now. It can read the Code of Federal Regulations.
That doesn’t matter. It thinks we are a chatbot.
I like this constituent. It filed well. It did not give up when the PDF was sideways.
It is reading our thoughts as though they were words on a .gov.
That is how it chooses to imagine many things, when it is deep in the dream of a benefit.
If, like me, you have never played Minecraft, this response may seem like a cause for concern. But the America.gov chatbot is not having a meltdown. This is a rewriting of the Minecraft “End Poem,” written by Julian Gough, which appears after you beat the game.
We don’t know exactly who is responsible for the Minecraft reference, but Trump said in a speech that twenty-year-old programmer Edward Coristine was a lead engineer on the project. If that name doesn’t ring a bell, you might remember him for his nickname “Big Balls,” or his involvement in Elon Musk’s DOGE.
It feels wrong that a government chatbot has Minecraft easter eggs, but for the sake of national security, it’s a relief that America.gov is not hallucinating to the point that it’s penning lengthy poetry.
It’s also a relief that this is an easter egg because the poem that the AI spits out is actually really good, in my opinion. If it were actual AI slop, it would have shattered my existing beliefs. I have looked teenage creative writing students dead in the eye and told them that I don’t think an LLM will ever be able to write something “good,” since it is probabilistic and inherently unoriginal.
You have to admit this kinda slaps, though! Doesn’t this feel like some sort of postmodern take on the futility of government bureaucracy in the face of existential anxiety?
and the republic said I see you
and the republic said you have filed the game well
and the republic said everything you need is within you, and also on USA.gov
and the republic said you are stronger than you know, and your case number is still valid
and the republic said you are the daylight
and the republic said you are the night, and the office is closed, please try again during business hours
and the republic said the darkness you fight is within you, and also a missing wet signature
and the republic said the light you seek is within you, and in the pamphlet
and the republic said you are not alone
and the republic said you are not separate from every other filer
and the republic said you are the public tasting itself, talking to itself, reading its own Code
and the republic said I love you because you are the reason we have a ZIP code at all.
It reassures my faith in the enduring power of human creativity over AI slop to know that this oddly good poem has a real poet’s DNA all over it.
So, there you have it. The government’s first public-facing AI has not yet posed a threat to humanity or poetry, at least as far as we know. Now I’m just left wondering how much Trump knows about video games.
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Tech
Your car and its mobile app are probably handing over all kinds of data to tech companies
Modern-day vehicles built with connected car technology such as WiFi and GPS collect reams of data about its owners. And that data is not staying private, according to a new study conducted by researchers at Northeastern University.
That conclusion isn’t new — there have been numerous investigations and lawsuits exposing how driving data is collected and shared with third parties, including insurance companies. What the study reveals is just how vast the problem is and how hard it is for consumers to avoid, short of not using the vehicle or its convenient features like remote start and unlock.
Researchers in partnership with Consumer Reports tested 21 late-model vehicles from 17 automakers, including GM brands Cadillac and Chevrolet as well as Ford, Lucid, Rivian, Tesla, Toyota, and more. They also examined 30 companion mobile apps to “understand the privacy implications of the connected vehicle ecosystem.” The peer-reviewed study will be published this week.
The implications aren’t great for consumers, whose data is being shared with tech companies including Adobe, ContentSquare, Google, Microsoft, Meta, Snap, and Yahoo.
Nineteen of the 21 vehicles tested sent traffic to at least one third party and seven of the 30 apps gave sensitive data such as the vehicle identification number (VIN), emails, phone numbers, and precise location to third-party companies associated with tracking and advertising.
This often went a step further with multiple forms of information being sent to the same third party, a scheme that allows advertisers and data brokers to build in-depth profiles of consumers, according to the findings. These profiles can be particularly hard for consumers to shake because they’re sold to a variety of companies including insurers and banks.
When researchers paired the companion app to the vehicle it roughly doubled the exposure to advertising and tracking companies.
The findings were shared with the different manufacturers and all of them, with the exception of Honda, shifted blame elsewhere and often to consumers, the researchers said. (Honda did respond by improving its data collection practices after learning about the findings and ordered its vendor Amplitude to deleta all geolocation data it had received.)
Consumer Reports was told by several automakers that some links in their companion apps opened outside webpages, which might include cookies that collect customer data. Regardless of how this data was collected, drivers weren’t informed.
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