1KOMMA5° hits $1.35B valuation, plans €100M AI energy push

German energy technology company 1KOMMA5° has secured a new valuation of $1.35 billion and will invest €100 million in AI-powered energy management systems.

The funding round, first reported by tech.eu, positions the startup as a unicorn in the climate sector. 1KOMMA5° plans to use the capital to expand its AI tools for residential and commercial energy optimization, including demand forecasting and grid balancing.

Unlike recent AI funding rounds—such as Instinct’s $1 billion Series C at a $10 billion valuation or Positron AI’s $875 million raise—1KOMMA5° operates at the intersection of hardware and software. Its model relies on physical energy assets, which require longer deployment cycles than cloud-based AI services.

The €100 million AI investment suggests a strategic shift toward higher-margin software, though the company has not disclosed whether the funds will come from new capital or existing reserves. Competitors in the space have also integrated AI into their platforms, but 1KOMMA5°’s valuation reflects growing investor confidence in hybrid energy-AI models.

What remains unclear is how quickly the AI tools will drive revenue growth. Energy hardware businesses typically face thin margins and regulatory hurdles, and AI-driven savings for customers may not translate into scalable pricing models. The next milestone to watch is whether 1KOMMA5° can demonstrate unit economics that justify its valuation before its next funding round.

Sources: tech.eu