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UK Startup Uses AI to Revolutionize Energy Trading
10 Feb
Summary
- AI-powered engine aims to reduce energy prices.
- Startup secured $75 million in Series B funding.
- Expansion planned for Australia and the U.S.
London-based startup Tem is employing artificial intelligence to combat rising electricity prices, particularly those driven by AI data centers. The company has developed an energy transaction engine named Rosso, which utilizes AI to cut costs by optimizing transactions and reducing market intermediaries.
Tem's engine, Rosso, employs machine learning and LLMs to predict energy supply and demand. CEO Joe McDonald stated the goal is to eliminate multiple layers of profit-taking intermediaries and associated labor costs, making electricity prices more reflective of wholesale rates.
The company also operates a 'neo-utility' division called RED, initially created to demonstrate Rosso's value. RED currently serves as Rosso's sole utility customer, significantly influencing Tem's strategic focus.
Tem recently secured $75 million in Series B funding, led by Lightspeed Venture Partners, with a valuation exceeding $300 million. This funding will fuel international expansion into Australia and the U.S., starting with Texas.
While RED is proving Rosso's efficacy, Tem's long-term vision is to offer its infrastructure as a service, similar to AWS or Stripe, to other utilities and energy generators globally.
