Connect with us

Business

Bloom Energy’s stock is up 1,000% in a year because its fuel cells are solving AI’s data center power problem

Published

on


Aerospace engineer KR Sridhar always dreamed big: He used to work with NASA on technology to convert carbon dioxide into oxygen to support life on other planets or let humans breathe air on Mars. But as the Soviet Union fell and the space race slowed, Sridhar pivoted to providing clean energy technology for the rising global middle class.

He cofounded Ion America in 2001—renamed Bloom Energy five years later—with a focus on fuel cells that deliver cleaner, on-site, off-grid power. Fast forward to today’s AI race, and Bloom’s products just so happen to mesh with the needs of the data center boom that’s starving for massive power generation growth very quickly.

Fuel cells can hypothetically bring power online for data centers in months, not years, because they do not have to wait for the backlog of gas-fired turbines or the long queue for grid interconnections.

Bloom’s stock price has spiked 1,000% in 12 months—its market cap is now about $28 billion, up from $2.5 billion a year ago. The company has signed big data center deals with Oracle, American Electric Power (AEP), Equinix, and Brookfield Asset Management, the latter of which is a $5 billion partnership announced Oct. 13 to power AI factories globally, including Europe.

Bloom CEO Sridhar actually had data centers in mind as a big opportunity when he first pitched the company at the turn of the century. But the massive growth didn’t take off until after the ChatGPT launch.

“That’s when we said, ‘Everything that we’ve been telling the world is going to happen is now going to accelerate,’” Sridhar told Fortune.

“It’s a 24-year journey for an overnight success,” Sridhar said with a laugh. “I’m glad it’s in my lifetime.”

Renewable wind and solar energy still have some intermittency issues, even with batteries. And a sufficient supply of gas-fired and nuclear power stations are several years away, he said. That’s why on-site fuel cells are the answer, he says, both as a bridge and as a permanent power solution.

The company’s solid oxide fuel cells are a mature technology that have been developed over two decades. Thus far, Bloom has deployed 1.5 gigawatts of fuel cells—enough to power 1.2 million homes—with demand mounting by the day. The goal is to deploy 10 gigawatts per year from its manufacturing hubs in Fremont, California, and Newark, Delaware.

Fuel cells have existed for years, but they’ve lacked mainstream adoption because of their high manufacturing costs. They require expensive precious metals, corrosive acids, or hard-to-contain molten materials. Bloom’s solid oxide fuel cells use lower-cost ceramics—no precious metals—and they provide much greater electrical efficiency, operating at temperatures above 800 degrees Celsius.

The cells convert natural gas, hydrogen, or biogas into electricity through a clean electro-chemical process rather than dirty combustion. The cells are zero-carbon if they use green hydrogen, but they’re still cleaner than gas turbines even if they use natural gas. And the fuel cells are modular, so they can ramp up or down, or be relocated to other data centers when grid power becomes available.

Sridhar acknowledged the long journey to get here. Bloom took seven years to develop the first commercial cells. And then another decade to continually bring the costs down and improve their efficiency. In the meantime, Bloom relied on “early adopter” Fortune 100 customers who were willing to pay extra to power for cleaner power, including Google, Walmart, eBay, and FedEx.

From unicorn to large-cap stock

For years, Bloom was hyped as a Silicon Valley unicorn, but in 2012 the SEC charged an investment bank working with Bloom of using inflated numbers to mislead investors. Bloom was not accused of wrongdoing, and the company eventually went public in 2018.

The technology works more affordably now since fuel cell microgrids qualify for tax credits from President Trump’s One Big Beautiful Bill, said Marina Domingues, head of U.S. new energies research for the Rystad Energy research firm. She said they are comparable to the price of power from combined-cycle gas turbines, but fuel cells can come online more quickly and produce power more cleanly.

“Deta centers come with two main wish list requests. One of them is the power must be truly reliable,” she said. “Another one, which is probably the toughest, is that they need power now,” Domingues said. “They’re offering a solution exactly at the same time developers need it. There’s a lot of potential market growth for a company like Bloom.”

Bloom Energy explains how its fuel cells function.

Pushing a fuel cell imperative

Much of the AI boom’s focus is on massive hyperscaler campuses in rural areas, such as OpenAI’s Stargate project in Abilene, Texas, and beyond. But Sridhar insists fuel cells will not only be helpful, they’ll become imperative once the race is on to build more and more smaller data centers in increasingly urban areas closer to consumer demand.

“The only two raw materials [that AI needs] are data and electricity,” Sridhar said. “It’s extremely electricity intense. They have to produce their own power on site.

“You’re not going to have any choice but on-site power, because no city has the distribution network that can accommodate those kinds of big [electricity] loads,” Sridhar said, citing Memphis, Tennessee, as an example of public outcry amid rising emissions for powering data centers. “If it’s in your backyard or outside your office window, you want it to be clean.”

Elham Akhavan, Wood Mackenzie senior microgrid research analyst, said Bloom’s competitors—including FuelCell Energy, Doosan Group’s HyAxiom, and Plug Power—offer different variations on the technology but they have not yet scaled up as much as Bloom.

As the technology advanced, the fuel cell sector was able to reposition itself from being a mere provider of backup power to a primary power source—with the grid as the backup, she said.

“Bloom led fuel cell deployment across North America way before data center demand arrived,” Akhavan said. “It’s a prime power solution in a very small footprint, and rest of the land is available for the data centers.”

Domingues said Bloom has a multitude of factors working to its advantage, including a head start on competitors, a domestic manufacturing chain when Trump is pushing onshoring and tariffs, and an early bet on fuel cells for “stationary power” when many potential rivals focused on fuel cells for the transportation sector.

“Bloom bet on the stationary power path, and they also had strong relationships with some of the traditional data center market,” Domingues said. “That allows them some competitive advantages against their peers.”

The company is currently unprofitable. Bloom operated at a $29 million net loss in 2024, improved from a roughly $300 million loss in 2023. But Bloom also lost $66 million in the first half of 2025.

Sridhar insists the lack of profitability will be short lived. “We are not one of these companies that has to invest, invest, invest. We’ve already done that part the last 20 years. We have the flywheel spinning already. Accelerating is going to take less and less energy.”

Sridhar said Bloom intentionally built its manufacturing plants as exact copies so they can continue to scale up more quickly to match demand and offer rapid returns on investment. “We believe the market demand is going to be there because electricity abundance is what’s going to generate a better quality of life and wealth in a digitized world,” he said.

Sridhar is still inspired by his dreams of Mars: “Living off the land is truly what an explorer does. So, I started producing oxygen, breathing air, water, electricity, heat on Mars so someday humans can live there,” he said. On Earth, “Clean energy is what we need on the planet in a very reliable way, everywhere, and with access.”



Source link

Continue Reading

Business

Google DeepMind agrees to sweeping partnership with the U.K. government

Published

on



AI lab GoogleDeepMind announced a major new partnership with the U.K. government Wednesday, pledging to accelerate breakthroughs in materials science and clean energy, including nuclear fusion, as well as conducting joint research on the societal impacts of AI and on ways to make AI decision-making more interpretable and safer.

As part of the partnership, Google DeepMind said it would open its first automated research laboratory in the U.K. in 2026. That lab will focus on discovering advanced materials including superconductors that can carry electricity with zero resistance. The facility will be fully integrated with Google’s Gemini AI models. Gemini will serve as a kind of scientific brain for the lab, which will also use robotics to synthesize and characterize hundreds of materials per day, significantly accelerating the timeline for transformative discoveries.

The company will also work with the U.K. government and other U.K.-based scientists on trying to make breakthroughs in nuclear fusion, potentially paving the way for cheaper, cleaner energy. Fusion reactions should produce abundant power while producing little to no nuclear waste, but such reactions have proved to be very difficult to sustain or scale up.

Additionally, Google DeepMind is expanding its research alliance with the government-run U.K. AI Security Institute to explore methods for discovering how large language models and other complex neural network-based AI models arrive at decisions. The partnership will also involve joint research into the societal impacts of AI, such as the effect AI deployment is likely to have on the labor market and the impact increased use of AI chatbots may have on mental health.

British Prime Minister Keir Starmer said in a statement that the partnership would “make sure we harness developments in AI for public good so that everyone feels the benefits.”

“That means using AI to tackle everyday challenges like cutting energy bills thanks to cheaper, greener energy and making our public services more efficient so that taxpayers’ money is spent on what matters most to people,” Starmer said.

Google DeepMind cofounder and CEO Demis Hassabis said in a statement that AI has “incredible potential to drive a new era of scientific discovery and improve everyday life.”

As part of the partnership, British scientists will receive priority access to Google DeepMind’s advanced AI tools, including AlphaGenome for DNA sequencing; AlphaEvolve for designing algorithms; DeepMind’s WeatherNext weather forecasting models; and its new AI co-scientist, a multi-agent system that acts as a virtual research collaborator.

DeepMind was founded in London in 2010 and is still headquartered there; it was acquired by Google in 2014.

Gemini’s U.K. footprint expands

The collaboration also includes potential development of AI systems for education and government services. Google DeepMind will explore creating a version of Gemini tailored to England’s national curriculum to help teachers reduce administrative workloads. A pilot program in Northern Ireland showed that Gemini helped save teachers an average of 10 hours per week, according to the U.K. government.

For public services, the U.K. government’s AI Incubator team is trialing Extract, a Gemini-powered tool that converts old planning documents into digital data in 40 seconds, compared to the current two-hour process.

The expanded research partnership with the U.K. AI Security Institute will focus on three areas, the government and DeepMind said: developing techniques to monitor AI systems’ so-called “chain of thought”—the reasoning steps an AI model takes to arrive at an answer; studying the social and emotional impacts of AI systems; and exploring how AI will affect employment.

U.K. AISI currently tests the safety of frontier AI models, including those from Google DeepMind and a number of other AI labs, under voluntary agreements. But the new research collaboration could potentially raise concerns about whether the U.K. AISI will remain objective in its testing of its now-partner’s models.

In response to a question on this from Fortune, William Isaac, principal scientist and director of responsibility at Google DeepMind, did not directly address the issue of how the partnership might affect the U.K. AISI’s objectivity. But he said the new research agreement puts in place “a separate kind of relationship from other points of interaction.” He also said the new partnership was focused on “question on the horizon” rather than present models, and that the researchers would publish the results of their work for anyone to review.

Isaac said there is no financial or commercial exchange as part of the research partnership, with both sides contributing people and research resources.

“We’re excited to announce that we’re going to be deepening our partnership with the U.K. AISI to really focus on exploring, really the frontier research questions that we believe are going to be important for ensuring that we have safe and responsible development,” he said.

He said the partnership will produce publicly accessible research focused on foundational questions—such as how AI impacts jobs or how talking to chatbots effects mental health—rather than policy-specific recommendations, though the findings could influence how businesses and policymakers think about AI and how to regulate it.

“We want the research to be meaningful and provide insights,” Isaac said.

Isaac described the U.K. AISI as “the crown jewel of all of the safety institutes” globally and said deepening the partnership “sends a really strong signal” about the importance of engaging responsibly as AI systems become more widely adopted.

The partnership also includes expanded collaboration on AI-enhanced approaches to cybersecurity. This will include the U.K. government exploring the sue of tools like Big Sleep, an AI agent developed by Google that autonomously hunts for previously unknown “Zero Day” cybersecurity exploits, and CodeMender, another AI agent that can search for and then automatically patch security vulnerabilities in open source software.

British Technology Secretary Liz Kendall is visiting San Francisco this week to further the U.K.-U.S. Tech Prosperity Deal, which was agreed to during U.S. President Trump’s state visit to the U.K. in September. In November alone, the British government said the pact helped secure more than $32.4 billion of private investment committed to the U.K tech sector.

The Google-U.K. partnership builds on a £5 billion ($6.7 billion) investment commitment from Google made earlier this year to support U.K. AI infrastructure and research, and to help modernize government IT systems.

The British government also said collaboration supports its AI Opportunities Action Plan and its £137 million AI for Science Strategy, which aims to position the UK as a global leader in AI-driven research.



Source link

Continue Reading

Business

49-year-old Democrat who owns a gourmet olive oil store swipes another historically Republican district from Trump and Republicans

Published

on



Democrat Eric Gisler claimed an upset victory Tuesday in a special election in a historically Republican Georgia state House district.

Gisler said he was the winner of the contest, in which he was leading Republican Mack “Dutch” Guest by about 200 votes out of more than 11,000 in final unofficial returns.

Robert Sinners, a spokesperson with the secretary of state’s office, said there could be a few provisional ballots left before the tally is finalized.

“I think we had the right message for the time,” Gisler told The Associated Press in a phone interview. He credited his win to Democratic enthusiasm but also said some Republicans were looking for a change.

“A lot of what I would call traditional conservatives held their nose and voted Republican last year on the promise of low prices and whatever else they were selling,” Gisler said. “But they hadn’t received that.”

Guest did not immediately respond to a text message seeking comment late Tuesday.

Democrats have seen a number of electoral successes in 2025 as the party’s voters have been eager to express dissatisfaction with Republican President Donald Trump.

In Georgia in November, they romped to two blowouts in statewide special elections for the Public Service Commission, unseating two incumbent Republicans in campaigns driven by discontent over rising electricity costs.

Nationwide, Democrats won governor’s races by broad margins in Virginia and New Jersey. On Tuesday a Democrat defeated a Trump-endorsed Republican in the officially nonpartisan race for Miami mayor, becoming the first from his party to win the post in nearly 30 years.

Democrats have also performed strongly in some races they lost, such as a Tennessee U.S. House race last week and a Georgia state Senate race in September.

Republicans remain firmly in control of the Georgia House, but their majority is likely fall to 99-81 when lawmakers return in January. Also Tuesday, voters in a second, heavily Republican district in Atlanta’s northwest suburbs sent Republican Bill Fincher and Democrat Scott Sanders to a Jan. 6 runoff to fill a vacancy created when Rep. Mandi Ballinger died.

The GOP majority is down from 119 Republicans in 2015. It would be the first time the GOP holds fewer than 100 seats in the lower chamber since 2005, when they won control for the first time since Reconstruction.

The race between Gisler and Guest in House District 121 in the Athens area northeast of Atlanta was held to replace Republican Marcus Wiedower, who was in the seat since 2018 but resigned in the middle of this term to focus on business interests.

Most of the district is in Oconee County, a Republican suburb of Athens, reaching into heavily Democratic Athens-Clarke County. Republicans gerrymandered Athens-Clarke to include one strongly Democratic district, parceling out the rest of the county into three seats intended to be Republican.

Gisler ran against Wiedower in 2024, losing 61% to 39%. This year was Guest’s first time running for office.

A Democrat briefly won control of the district in a 2017 special election but lost to Wiedower in 2018.

Gisler, a 49-year-old Watkinsville resident, works for an insurance technology company and owns a gourmet olive oil store. He campaigned on improving health care, increasing affordability and reinvesting Georgia’s surplus funds

Guest is the president of a trucking company and touted his community ties, promising to improve public safety and cut taxes. He was endorsed by Republican Gov. Brian Kemp, an Athens native, and raised far more in campaign contributions than Gisler.



Source link

Continue Reading

Business

Rivian CEO says it’s a misconception EVs are politicized, with a 50-50 party split among R1 buyers

Published

on



If Rivian’s sales are any indication, owning an electric vehicle isn’t such a partisan issue, despite President Donald Trump’s rollbacks of mandates, incentives, and targets for EVs.

At the Fortune Brainstorm AI conference in San Francisco on Tuesday, Rivian CEO RJ Scaringe said it’s a misconception that electrification is politicized, explaining that most customers buy a product based on how it fits their needs, not their ideology. The questions car buyers ask, he said, are the same whether they’re purchasing one with an internal-combustion engine or a battery: “Is it exciting? Are you attracted to the product? Does it draw you in? Does the brand positioning resonate with you? Do the features answer needs that you have?”

Buyers of Rivian’s R1 electric SUV are split roughly 50-50 between Republicans and Democrats, Scaringe told Fortune’s Andrew Nusca. “I think that’s extraordinarily powerful news for us to recognize—that this isn’t just left-leaning buyers,” he added. “These are people that are saying, ‘I like the idea of this product, I’m excited about it.’ And this is thousands and thousands of customers. This is statistically relevant information.”

Buying an EV was once an indication of left-leaning politics, but the politics got scrambled after Tesla CEO Elon Musk became the top Republican donor and a close adviser to Trump. That drew some new customers to Tesla, and turned off a lot of progressive EV buyers, with many existing owners putting bumper stickers on their Teslas explaining that they bought their cars before Musk’s hard-right turn. Trump and Musk later had a stunning public feud, in part over the administration’s elimination of EV and solar tax credits.

But Scaringe said he started Rivian with a long-term view, independent of any policy framework or political trends. He also insisted that if Americans have more EV choices, sales would follow. Right now, Tesla dominates a key corner of the market, namely EVs in the $50,000 price range. Rivian’s forthcoming R2 mid-size SUV will represent a new choice in that market, with a starting price of $45,000 versus the R1’s $70,000.

Ten years from now, Scaringe said he hopes—and believes—that EV adoption in the U.S. will be meaningfully higher than it is today across the board, explaining that the main constraint isn’t on the demand side. Instead, it’s on the supply side, which suffers from “a shocking lack of choice,” especially compared to Europe and China, he added. EV options in the U.S. are limited by the fact that Chinese brands are shut out of the market.

More choices for U.S. EV buyers would presumably create more competition for Rivian—and indeed, the flood of low-priced Chinese EVs in other auto markets has created a backlash, with countries such as Canada imposing steep tariffs on them. But Scaringe appears to view more competition as positive for the market overall.

“I do think that the existence of choice will help drive more penetration, and it actually creates a unique opportunity in the United States,” he said.



Source link

Continue Reading

Trending

Copyright © Miami Select.