Deep Tech Briefing #34: ⚛️ Big Tech Backs Nuclear Energy; 🌊 Wave Power Scales Up; 📡 Space Internet's New Constellation Expands; 🚜 Agri-Autonomy Advances; 🚗 Autonomous Cars Push for IPO
An insider’s update on Deep Tech Ventures: Your dose of tech innovations, startups, exponential industries, policies, and market moves to stay ahead and capitalize on it.
Welcome to the #34 edition of Deep Tech Briefing, our Sunday column where we break down the week’s top developments in Deep Tech Startups and Venture Capital.
In today’s edition
Big Tech's nuclear revival: Google and Amazon invest in Small Modular Reactors (SMRs)
Wave energy takes a leap forward with CorPower Ocean’s €32M funding round
A French startup raises €9.3M to challenge Starlink in the space internet market
Agriculture automation accelerates as Agtonomy secures $32.8M in funding
Pony.ai files for a $300M IPO, leading the autonomous vehicle race
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⚛️ Big Tech's Big Bet on SMRs: Are We Ready for This Nuclear Revival?
As the global push for decarbonization heats up, nuclear energy is making a comeback as a potential cornerstone for clean and reliable power. It seems like the new "Big Tech" has truly gone nuclear, with two of the most famous Big Tech giants betting on it.
Pun aside, we begin this week with Google, which on Monday signed a power purchase agreement with California-based nuclear energy startup, Kairos Power. Just two days later, on October 16th, Amazon announced it had signed three deals to develop nuclear reactors, including leading a $500 million funding round for a reactor developer called X-energy.
So, what's behind this? The growing need for new energy sources to power the hungry data centers, which are crucial for running AI and other tech products, is pushing the tech industry to dive into nuclear energy.
So, both Google and Amazon are focusing on Small Modular Reactors (SMRs), the next-generation technology that their partner companies are working on.
Essentially, SMRs are nuclear reactors designed to generate between 10 and 300 MWe, significantly smaller than traditional reactors. What sets them apart is their modularity: they can be prefabricated and assembled on-site, speeding up deployment. SMRs also boast passive safety systems, which rely on natural circulation for cooling, reducing the risk of catastrophic failures.
Currently, only one SMR project, NuScale Power, has received approval from the U.S. Nuclear Regulatory Commission (NRC), while Google's Kairos Power and Amazon's X-energy have not yet been approved. Naturally, people wonder why these tech giants haven’t turned to those who’ve already received approval, but here we enter market dynamics that, frankly, are more in the realm of speculation than anything else.
An interesting note is that the commonality between Google’s Kairos Power and Amazon’s X-energy is TRISO, or tri-structural isotropic particle fuel, an advanced, meltdown-resistant fuel designed to withstand extreme temperatures without the risk of a meltdown.
Speculatively speaking, the need for safer fuel could be the bet that Google and Amazon are making, or perhaps they can simply afford to wait for technologies with higher thermodynamic efficiency...?
In any case, the urgency to meet clean energy goals, coupled with the need to power data centers and AI, may accelerate regulatory support. In fact, a 2024 report from the U.S. Department of Energy highlighted the risks of delaying large-scale nuclear implementation, warning that waiting until the mid-2030s could jeopardize decarbonization goals and increase the capital investments required by over 50%.
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🌊 Energy from ocean waves on scale: CorPower Ocean on the way to commercialize its wave energy tech.
"Harvestable and accessible wave energy resources in the world amount to 500 GW, with availability and predictability way above wind and solar," notes Diego Pavia, CEO of InnoEnergy.
This distinction makes wave energy particularly suitable for reliable integration into the power grid. According to the World Energy Council, global wave energy could meet up to 10% of the world’s electricity demand by 2050.
Unlike wind and solar energy, ocean waves offer a steady and predictable energy output, making them highly appealing for those seeking a stable renewable source. This is precisely the vision of CorPower Ocean, a Swedish pioneer in wave energy, which is moving to scale up its technology for commercial use. In fact, this week, the company closed a critical Series B1 funding round of €32 million, enabling it to develop large-scale projects such as the Saoirse Wave project in Ireland. This project aims to demonstrate that wave farms can reliably power thousands of homes.
This investment follows a major milestone: CorPower’s successful C4 wave energy converter, a technology that has demonstrated resilience by maintaining efficiency in regular ocean conditions and even withstanding Atlantic storms.
But what makes wave energy so intriguing? One key benefit is its higher energy density compared to wind and solar; wave energy requires fewer devices to produce the same amount of power, reducing the spatial and financial footprint of large-scale projects. For instance, a 1 MW wave farm can supply energy to about 1,000 homes, and projections suggest the Levelized Cost of Energy (LCOE) for wave energy could reach €30-50 per MWh once scaled up—making it a competitive option in coastal areas with strong wave resources.
The potential for wave energy globally is remarkable, particularly along Europe’s Atlantic coast, the western United States, and coastal areas in Africa, Australia, and Asia. In these optimal regions, wave energy fluxes can reach up to 70 kW per meter, according to the European Commission.
Additionally, the International Renewable Energy Agency (IRENA) estimates the annual global wave energy potential at around 29,500 TWh—far exceeding the world’s current electricity needs. This reliability and consistent availability make wave energy an attractive option for coastal communities looking to diversify their renewable energy sources.
Looking ahead, global support for marine energy is growing. The United Kingdom, for example, has set a target of 1 GW of marine energy by 2030, while the United States has allocated over $200 million for marine energy R&D.
These policies aim to propel wave energy technology toward commercial viability, driving down costs through economies of scale and attracting further investment. Ocean Energy Europe projects that by 2050, the wave energy industry could create up to 400,000 jobs and save 276 million tons of CO2 annually.
📡 Space Internet's New Constellation: A €9.3M Bet on Telecom's Stellar Future
While Elon Musk's Starlink continues to fill our night skies with thousands of satellites, a French startup has just raised €9.3 million to help traditional telecom operators reclaim their share of the space internet market.
The investment comes from Expansion, a fund dedicated to New Space and New Air Mobility, and the French Tech Seed fund, managed by Bpifrance on behalf of the French government, as part of the France 2030 plan.
According to a 2023 GSMA Intelligence report, the global market for space-based internet connectivity is projected to generate $35 billion in annual revenue opportunities for telecom operators by 2035. Currently, this market is dominated by U.S. projects like SpaceX's Starlink and Amazon's Kuiper, which are developing or operating B2C satellite constellations with thousands of satellites.
Constellation Technologies aims to differentiate itself by developing a B2B2C model that places telecom operators at the center of the value chain. The company plans to deploy its constellation in Very Low Earth Orbit (VLEO), specifically at an altitude of 375 kilometers. This approach is designed to ensure high-speed connectivity with minimal latency, while promoting more sustainable space usage by reducing the risks of space debris and light pollution.
The mind behind this initiative is Charles Delfieux, a former World Bank infrastructure expert who has seen firsthand how the digital divide affects developing regions.
“For the first time in the history of space and telecommunications, we are witnessing a convergence between space-based and terrestrial connectivity in terms of performance and price,” Delfieux told TechCrunch.
His solution? A constellation of 1,500 satellites that will enable telecom operators to offer download speeds of 150 Mbps with less than 30 milliseconds of latency—figures that make it competitive with terrestrial 5G networks.
But the road to space is fraught with technical and regulatory challenges. Operating in VLEO is no simple task. These lower orbits face greater atmospheric drag, which could potentially shorten satellite lifespans. However, Constellation Technologies claims its 350-kilogram satellites will last seven years in VLEO before burning up in the atmosphere, according to SpaceNews. It’s a bold claim that only time (and space) will prove.
The regulatory landscape is equally complex. Reusing the 5G spectrum for space is not just a technical challenge; it’s a legal and regulatory maze that could make or break the venture. The company must demonstrate that its system won’t interfere with terrestrial networks—easier said than done.
Despite these challenges, Constellation Technologies has set an ambitious timeline. They aim to deploy the full constellation of 1,500 satellites between 2027 and 2029, offering global coverage and enabling telecom operators to deliver high-speed, low-latency internet access from space. If successful, this could significantly reshape both space and terrestrial communications, providing new opportunities for connectivity worldwide.
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🚜 AI-Driven Automation in Agriculture Accelerates: Agricultural Autonomy Gets a $32.8 Million Vote of Confidence
When a Sonoma County vineyard failed to find a single candidate for 27 tractor operator positions, they tried something unconventional: they rewrote the job posting to ask for "gaming experience." Applications flooded in. This isn't just another quirky Silicon Valley story; it's a glimpse into agriculture's autonomous future, punctuated by Agtonomy's new $32.8 million Series A funding round announced this week.
The round, which included new investors Rethink Food, Allison Transmission, and Black Forest Ventures, alongside existing backers Toyota Ventures, Flybridge, and Cavallo Partners, highlights growing investor confidence in agricultural automation solutions. The addition of Sterling Anderson, Tesla Autopilot creator and Aurora co-founder, to the board adds further weight.
The timing isn't coincidental. John Deere, the 187-year-old agricultural giant, just announced autonomous capabilities for its 2025 tractors, aiming for fully autonomous corn and soybean production by 2030. But while Deere is going vertical, building both hardware and software, Agtonomy is taking the Android approach, creating software that can be incorporated into any manufacturer's equipment.
Data suggests a shifting landscape in farming operations. Traditional roles are being redefined as farms adopt autonomous systems, with Agriculture Dive reporting that some operations now specifically seek candidates with technology experience for positions that previously required conventional farming backgrounds. This transformation of agricultural labor represents a significant shift in the industry's workforce requirements and skills.
Current market analysis reinforces this momentum, with MarketsandMarkets projecting the global agricultural robotics market to reach $11.5 billion by 2025, advancing at a CAGR of 19.3% from 2020. This trajectory reflects both technological advancement and increasing market demand, particularly noteworthy given agriculture's traditionally conservative approach to technology adoption.
Take the economic perspective: The American Farm Bureau Federation has found that labor costs make up about 40% of total production costs in agriculture. By automating labor-intensive tasks, farmers could reduce these expenses and improve their profit margins.
Moreover, by automating tasks like weeding, farmers can reduce their reliance on pesticides, which can have harmful effects on soil health and biodiversity. According to the Environmental Protection Agency (EPA), pesticide use in the United States has been linked to declining pollinator populations and water quality issues.
As the sector evolves, crucial questions emerge. The role of major tech players remains to be seen, as the entry of figures like Anderson might signal growing interest from Silicon Valley giants. Additionally, the evolution of regulation is uncertain, though autonomy in fields could pave the way for more favorable regulations in other sectors as well.
🚗 Pony.ai’s $300 Million IPO: A Milestone in the Race for Autonomous vehicle?
This week's autonomous vehicle headlines pivot to Pony.ai as the Silicon Valley-born, China-operating company files for its Nasdaq debut under the ticker "PONY". According to Bloomberg's sources, the company aims to raise up to $300 million in what marks the first pure-play robotaxi IPO in the U.S. markets.
The financial data presents a company in transition. Reuters reports revenues nearly doubled to $24.7 million in the first half of 2024, while net losses decreased to $51.3 million from $69.4 million in the previous year. The company's operational metrics show a fleet of over 250 robotaxis that have accumulated 33.5 million kilometers of autonomous driving, including 3.9 million kilometers in fully driverless mode.
The timing of this IPO intersects with several market dynamics. As reported by Reuters, the U.S. IPO market has recently gained momentum, buoyed by expectations of the Federal Reserve's policy-easing cycle. Additionally, Chinese regulators have eased restrictions on overseas listings, with the Wall Street Journal noting that China's securities regulator approved Pony.ai's U.S. listing plans in April.
The company's market position reflects its dual-market strategy. Founded in Silicon Valley in 2016, Pony.ai has established operations across major Chinese cities. Seeking Alpha reports it has secured regulatory permits for public robotaxi services in all four of China's Tier-1 cities: Beijing, Shanghai, Guangzhou, and Shenzhen. This regulatory achievement coincides with significant corporate backing - Toyota holds a 13.4% stake according to Reuters, while recent investments include $100 million from Saudi Arabia's NEOM and $27 million from China's GAC.
The competitive landscape contextualizes this IPO. The Wall Street Journal notes that the filing comes one week after Tesla's robotaxi announcement. The sector includes various approaches from tech giants and automakers - Waymo (Google), Zoox (Amazon), Apollo (Baidu), and Cruise (GM) among them, as documented by Seeking Alpha.
Industry analysts cited by Reuters highlight ongoing sector-wide challenges, including technology reliability in adverse weather conditions, complex traffic situations, and unpredictable urban environments. The company maintained an $8.5 billion valuation in its 2022 funding round, setting a benchmark for market expectations.
The IPO's underwriting team spans global financial institutions, with the Wall Street Journal listing Goldman Sachs (Asia), Merrill Lynch (Asia Pacific), Deutsche Bank (Hong Kong Branch), Huatai Securities (USA), and Tiger Brokers (NZ) as managing the offering.
While the initial filing doesn't specify share numbers or price ranges, Bloomberg reports that Guangzhou Automobile Group is considering participating in the IPO, potentially deepening the company's automotive industry connections.
