tech

Octopus Energy to spin off $8.65bn tech arm Kraken

Archie MitchellBusiness reporter

Getty Images Octopus energy van and two Octopus energy employees carrying a boiler Getty Images

Octopus Energy is set to spin off its Kraken Technologies arm as a standalone company after a deal to sell a stake in the platform valued it at $8.65bn (£6.4bn).

The energy giant, Britain’s biggest gas and electricity supplier, has sold a $1bn stake in the AI-based division to a group of investors led by New York-based D1 Capital Partners.

The move paves the way for Kraken to be demerged from Octopus, and for a potential stock market flotation for the business in the future.

Octopus founder and chief executive Greg Jackson told the BBC there was “every chance” Kraken would list its shares “in the medium term”, with the location of the flotation “between London and the US”.

Kraken uses AI to automate customer service and billing for energy companies and can manage when customers use energy, rewarding them for reducing consumption at peak times.

It was initially built for use by Octopus but has since picked up a raft of other utilities clients, including EDF, E.On Next, TalkTalk and National Grid US. It now serves 70 million household and business accounts around the world.

The majority of the $1bn investment will go to Octopus to fund its expansion, with Kraken receiving the rest. Mr Jackson said Kraken will be operating completely independently of Octopus “within a few months”.

Other investors in the business included Fidelity International and a unit of Ontario Teachers’ Pension Plan, with Octopus maintaining a 13.7% stake in Kraken.

Kraken chief executive Amir Orad said the spinoff would give it the “focus and freedom” to grow, with the company having previously struggled to do business with Octopus’s rivals.

Mr Jackson said that for a large tech firm such as Kraken, the location for its share listing would be either London or the US.

“One thing about Kraken is we’ve got this global investor base… and so really the stock exchanges have got to kind of show why they are the right one for business.”

A London listing for Kraken’s shares would reverse a trend of firms snubbing the UK in favour of floating in the US.

Mr Jackson said Octopus had created 12,000 jobs in the UK, with 1,500 of these attributed to Kraken.

He said the company would keep its headquarters in the UK, and that “if London can be the right place to list, I would love that”.

“But it’s down to be where you’re going to get the most investor support and the most support from the stock exchange.”

The demerger comes amid the continued growth of Octopus Energy, which overtook British Gas to become the UK’s largest energy supplier earlier this year, serving 7.7 million households.

But it confirmed this year it was one of three retail energy firms that had not yet met regulator Ofgem’s financial resilience targets.

Octopus, which will unveil its annual results on Tuesday, said the cash injection would “almost double Octopus Energy Group’s already strong balance sheet”.

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Saunas, electronica and air guitar: Oulu, Finland’s tech city, is European Capital of Culture 2026 | Finland holidays

A floating community sauna on frozen Lake Oulu seemed as good a place as any to ask Finnish locals what they think of the European Capital of Culture bandwagon that will be rolling into their city in 2026. Two women sweltering on the top bench seemed to sweat more over my question than over the clouds of sauna steam – the result of a beefy Finn ladling water on the wood-fired coals with a grim determination to broil us all.

“Hmmm, yes, it will bring people to Oulu, which is good, but we don’t really know much about it,” said one of the women. “We know it’s happening, but we haven’t had many details.”

Outside, queueing for the pleasure of a dip in the frozen lake, the question elicited the sort of shrug rarely seen outside France. “We know it’s happening because the posters and signs are everywhere and people are talking about it, but we don’t know exactly what is happening,” said another woman, steaming in the sub-zero air.

Oulu can be found on the eastern edge of the Baltic Sea. Photograph: VisitOulu

There are many reasons to visit the Finnish city of Oulu, which sits on the eastern edge of the Baltic Sea: it hosts the Air Guitar world championships; is home to the world’s only Screaming Men’s Choir (20-40 suited, shouty men); and holds the annual Polar Bear Pitching event, where would-be business leaders pitch money-spinning ideas while standing in icy water. The presentations tend to be brief.

Oulu, Finland’s fifth most populous city, is 100 miles south of the Arctic Circle. It is a short drive from huskies and sled rides; it offers sea, rivers, rapids, lakes, woods, nature trails and reserves; and there is cross-country skiing as well as almost 600 miles of cycle lanes. You can see the midnight sun in summer and the northern lights in winter. It is a leading light in solar power and renewable energy – and it has saunas. Saunas on lakes and on rafts, saunas in hotels, free saunas by the roadside and in most homes. A century ago, 95% of all children were born at home, often in the sauna. Today, most parents-to-be choose a hospital but introduce their offspring to the sauna at an average age of 4.5 months.

Plus, the Oululainens have a cheery disposition, as do most Finns according to a survey that declared Finland the world’s happiest country for the eighth successive year.

These are all positives to attract visitors to this northern Nordic city that began as a settlement on Sami land in the 1600s, then became a trading site for wood tar, salmon and Nokia phones, and is now a European digital hub and a “living laboratory” (where innovations are tested in a real-world environment) for new technologies.

A floating sauna on Lake Oulu. Photograph: Jukka Lappalainen

Sadly, few of these esoteric attractions featured on a trip organised by the city’s Oulu 2026 culture committee, which chose highbrow over the shouty men and pretend guitarists.

The city’s diverse €50m Capital of Culture programme, spread across 39 sites and four counties, is aiming to attract up to 2.5 million visitors – 20% up on an average year – with the theme “Cultural Climate Change”. Highlights include a free Frozen People electronic music festival, held on the iced-over Bothnian Bay – provided it is frozen next year. Also on the calendar is the Lumo Art & Tech festival, plus the Arctic Food Lab, celebrating local cuisine (wild fish, berries, mushrooms), and a Sami opera, Ovllá, about the Indigenous people of Sápmi – the local word for Lapland – which covers northern Finland, Norway, Sweden and Russia’s Kola Peninsula.

“Its a unique opportunity for Oulu,” said Piia Rantala-Korhonen, chief executive officer of Oulu 2026, who estimates that for every euro spent, there will be a €5 return for the city. “Climate change is already happening and is a big concern here: the ice and snow are disappearing. Last year, we had to cancel the skiing marathon for only the second time in 100 years because there was no snow,” she said.

An Arctic Food Lab event, where people sample local delicacies. Photograph: oulu2026

Out on Oulu’s unseasonably slushy streets, most locals are cheerfully enthusiastic about 2026. “It will be nice to have people come here and discover our city,” said Matti, a student at one of Oulu’s two universities. “I am looking forward to it.”

Thirty meters under the city, you can find the Kivisydän (“stone heart”), a vast state-of-the-art car park that diverts vehicles away from the centre and doubles as a walkway when it rains and an emergency bomb shelter. It is a reminder of Finland’s proximity to Russia and the increasing alarm over its aggressive neighbour since Moscow’s invasion of Ukraine. Behind the Kivisydän’s steel doors, a vast red stone column stands like a beating heart. The car park could house the entire city, our guide told us.

But does it have a sauna? I asked.

“I don’t think so, but we’re Finns. If necessary, we can build one in a couple of days,” he said.

Were I a publicist for Oulu 2026, I would have hired Finland’s best air guitarist to accompany the screaming men with a few riffs while standing in an icy lake. Instead, after a traditional salmon soup dinner hosted by the city – followed by a sauna – we were treated to a cosy Norse tale. When 19th-century Oulu sailors became drunk and rowdy on merchant ships carrying tar to Liverpool, local legend has it that the Liverpudlian landlord would urge them to “keep peace”. This is now a popular toast.

As we raised glasses of local schnapps, I can think of many exclamations a scouse pub owner might make to an inebriated Finn. “Keep peace” is not one of them. Still, surrounded by the world’s happiest people, it seemed churlish to argue.

Then it was off to the sauna.

The trip was provided by Oulu 2026

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AI, Tariffs Fuel Big Tech Layoffs

This year is on course to become one of the worst years of this century for job cuts, comparable only to the Great Financial Crisis of 2008 and 2009 and the year of the pandemic, 2020.

Corporations are primarily attributing hundreds of thousands of recently announced layoffs to higher operating costs caused by US tariffs. Still, many feel that a workforce-rebalancing strategy to fund investments in artificial intelligence may also be to blame.

Last October, US job losses topped 153,000, the highest level since 2003. In November, the US gained 64,000 jobs, more than expected, but the unemployment rate climbed to a four-year high of 4.6%.

According to The Challenger Report, a leading indicator of the US labor market, American companies laid off over a million employees in the first 10 months of 2025. That’s the highest number since the pandemic-related recession five years ago, and up 65% from the same period last year.

The huge wave of redundancies, begun in January with the Trump Administration’s restructuring of government agencies, is now expanding to most sectors.

The latest round of announcements came from tech giants Intel, Microsoft, IBM, and Verizon, which collectively announced the axing of over 50,000 jobs. Online retail giant Amazon slashed 30,000 positions, while international courier UPS let go of 48,000 employees.

Other major industry players that have significantly reduced their workforce include Accenture (11,000 cuts), Procter & Gamble (7,000), PwC (5,600), Salesforce (4,000), American Airlines (2,700), Paramount (2,000), and General Motors (1,700).

The trend isn’t limited to American firms. In Europe, companies across various sectors also disclosed extensive staff reductions this year, with Nestlé cutting 16,000 jobs, Bosch 13,000 jobs, Novo Nordisk 9,000 jobs, Audi 7,500 jobs, Volkswagen 7,000 jobs, Siemens 5,600 jobs, Lufthansa 4,000 jobs, Lloyds Bank 3,000 jobs.

Asia-Pacific is also affected, with India’s Tata Consultancy dismissing 12,000 employees, Japan’s Nissan dismissing 11,000, and Australia’s second-largest bank, ANZ, dismissing 3,500.

Fears are spreading that this might be the start of an unprecedented, massive recession caused by AI expansion. If Amazon and Palantir dismissed the claim, Nvidia CEO Jensen Huang lately emphasized that “100% of everybody’s jobs will be changed” by AI.

And in a extraordinary step, after axing 1,500 jobs this year, traditional brick-and-mortar retailer Walmart delisted from the NYSE this month and move to tech-focused Nasdaq. The move highlights Walmart’s ‘tech-powered approach’, with decade-long investments in warehouse-automation and its current strong push towards AI. 

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Gaza’s tech workers code from rubble as Israel’s war destroys digital life | Israel-Palestine conflict News

In a territory where 81 percent of buildings lie damaged or destroyed, a small community of young Palestinians is fighting to preserve what remains of Gaza’s digital world.

Coders, repair technicians and freelance workers are labouring under impossible conditions to keep the besieged enclave connected to the outside world.

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Against all odds, Gaza’s youths continue to adapt. They work offline, code in notebooks, store solar power whenever the sun is out, and wait for rare moments of connectivity to send their work to clients around the world.

In a war that has taken nearly everything, digital skills have become a form of survival – and resilience.

Many now also rely on online work to make a living. But even that fragile lifeline is now hanging by a thread after more than two years of Israel’s genocidal war.

Gaza coders
Palestinians work on laptops and mobile devices in Gaza despite widespread destruction of telecommunications infrastructure [Al Jazeera]

According to the Palestinian Central Bureau of Statistics, Israeli forces have “deliberately and systematically destroyed” the telecommunications infrastructure.

“We just always look for another way to get connected, always find another way,” said Shaima Abu Al Atta, a coder working from a displacement camp. “This is what actually gave us purpose because if we didn’t do this, we would just die surviving and not doing anything. We would die internally.”

Before the war erupted in October 2023, Gaza had a modest but vibrant tech scene. Innovation hubs hosted coding bootcamps, and hundreds of freelancers worked remotely for international clients. Much of that ecosystem now lies in ruins.

Shareef Naim, an engineer who led a technology hub, described what was lost. His building housed more than 12 programmers with contracts for companies outside Gaza, he said. “The team was very active,” Naim told Al Jazeera.

Today, the structure is destroyed, though some team members are still trying to work from tents and emergency shelters.

Gaza coders
Technicians in Gaza work to repair telecommunications equipment amid severe shortages of spare parts and electricity [Al Jazeera]

Computer technician A’aed Shamaly says, “The main challenge is electricity. Today, electricity is not available all the time, and if it is available, it is unstable,  and there will be a lot of cuts. Prices are also high.”

Electricity, when available at all, is unstable and prohibitively expensive, $12 per kilowatt compared with $1.50 for 10 kilowatts before the war, he said. “There are no spare parts,” he added, so technicians must scavenge components from broken equipment pulled from bombed buildings.

The scale of destruction is staggering. According to the United Nations Satellite Centre (UNOSAT), approximately 198,273 structures across Gaza have been damaged, with 123,464 completely destroyed. The telecommunications sector has been particularly hard hit.

Data from the Palestinian Central Bureau of Statistics reveals that 64 percent of mobile phone towers were out of service as of early April 2025. In Rafah, coverage has collapsed to just 27 percent, down from near-universal access before the war.

During the war, connectivity watchdog NetBlocks documented repeated disruptions, including what it called a “near-total telecoms blackout” in January 2024 that lasted for days.

Israel has long restricted Gaza to outdated 2G mobile technology while allowing 4G in the occupied West Bank.

The telecommunications sector’s value has cratered from $13m in 2023 to just $1.5m in 2024, an 89 percent collapse. Estimated losses exceed half a billion dollars, while reconstruction is projected to cost at least $90m.

Gaza coders
Palestinians struggle to maintain internet connectivity in Gaza, where most telecommunications infrastructure has been destroyed [Al Jazeera]

The consequences ripple across Gaza’s economy and society.

Remote work was a crucial income source in a territory where unemployment exceeded 79 percent even before October 2023. Now, erratic internet access has pushed many freelancers into joblessness just as Israeli-induced famine has sent food prices soaring.

The telecommunications collapse has also paralysed the banking system, preventing money transfers and leaving families unable to access cash. Healthcare has been disrupted, with the World Health Organization documenting deaths caused by the inability to contact emergency services in time.

Even during the fragile ceasefire that took effect in October 2025, Israel has blocked essential repair equipment from entering Gaza. The restrictions form part of what analysts describe as a deliberate strategy to maintain control over Palestinian digital infrastructure and suppress the flow of information to the outside world.

The future remains deeply uncertain, as efforts to push a fragile ceasefire forward appear to stall and Israel threatens the possibility of returning to full-scale war.

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Tesla Board Reaped Over $3 Billion in Stock Awards, Far Exceeding Tech Peers

Tesla’s board of directors has earned more than $3 billion through stock awards since 2004, an amount that dwarfs compensation at other major U.S. technology firms. CEO Elon Musk’s brother Kimbal has earned nearly $1 billion, while director Ira Ehrenpreis collected $869 million and board chair Robyn Denholm $650 million. Most of these windfalls came from stock options that appreciated dramatically as Tesla’s share price soared.

Why It Matters
The outsized compensation raises questions about corporate governance and board independence. Experts argue that such high pay could compromise directors’ ability to objectively oversee Tesla and Musk, as a large portion of their wealth is tied to stock performance rather than cash. Critics also note that Tesla is one of the few major firms where directors are paid predominantly in options rather than shares, magnifying upside potential with limited downside risk.

Stock Option Controversy
Tesla directors have received compensation primarily through stock options, rather than shares. This practice allows them to profit if Tesla’s stock rises without incurring losses if it falls, unlike restricted stock which better aligns interests with shareholders. Between 2018 and 2024, Tesla directors averaged $1.7 million annually despite suspending pay for four years, more than double the average of Meta directors, the next highest-paid among the “Magnificent Seven” tech companies.

Legal and Governance Issues
Tesla’s board suspended new stock grants in 2021 following a shareholder lawsuit alleging excessive pay. The board has also faced scrutiny in a Delaware court over Musk’s 2018 compensation package, with the judge ruling that excessive pay and personal ties compromised CEO-pay negotiations. The board proposed a new pay package for Musk in 2024 potentially worth $1 trillion in Tesla stock over the next decade.

Stakeholders include Tesla’s board members, CEO Elon Musk, shareholders, corporate-governance experts, and the wider investment community. Oversight and accountability are central concerns, as compensation structures can influence board decisions and shareholder trust.

Comparison With Tech Peers
Other major tech firms like Alphabet, Meta, Apple, Microsoft, Amazon, and Nvidia (“Magnificent Seven”) have also seen stock-based wealth increases for directors, but none have granted awards as concentrated or directly tied to board service as Tesla. Lifetime earnings for Tesla directors far exceed peers when factoring in appreciated stock value.

What’s Next
Governance experts suggest reforms such as paying directors in restricted stock rather than options, and greater shareholder oversight of compensation plans. Tesla’s board must navigate the delicate balance of incentivising directors while maintaining independence in overseeing Musk and the company. Legal proceedings and shareholder scrutiny over Musk’s latest pay package are ongoing and may influence future board compensation practices.

Additional Considerations
The analysis raises broader questions about tech-sector governance, the risks of incentive structures tied to stock performance, and the potential misalignment between directors’ personal wealth and long-term shareholder interests. Tesla’s board, given its outsized compensation, will remain a focus for regulators and investors alike.

With information from an exclusive Reuters report.

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