In just a decade, Octopus Energy has evolved from a London startup into a global force in the clean energy sector.

The company, which started with a handful of tech-savvy founders, now boasts thousands of employees and a valuation nearing $10 billion.

Earlier this year, Octopus overtook British Gas to become the largest household energy supplier in the United Kingdom, supplying green power to more than 7 million UK homes and nearly 10 million customers worldwide.

Interestingly, at the heart of its success is not just its electricity—it’s the technology that powers it.

Octopus Energy’s AI platform Kraken powering the future of energy

Octopus’s greatest asset is not its energy retail business but its proprietary AI platform, Kraken.

Originally developed to serve Octopus itself, Kraken was spun out into a separate company in 2024 and now operates as the tech backbone for energy providers across the globe.

With a suite of capabilities ranging from customer management to grid balancing and renewable integration, Kraken is fast becoming the go-to digital infrastructure for energy companies looking to modernize.

Greg Jackson, Octopus co-founder and CEO, has been clear about his intentions: Octopus was created not just to sell electricity, but to test the capabilities of Kraken in a live market.

“We created Octopus as the ‘demo client’,” Jackson said in a Wall Street Journal report.

He said Kraken “became the opportunity to prove this very disruptive approach and it’s worked so well and we’ve just been able to carry it out on a very large scale.”

From dynamic pricing models to personalized recommendations for electric vehicle charging and laundry scheduling, Kraken’s ability to collect and analyze real-time energy data has positioned it as an indispensable tool for the future of clean energy.

Kraken’s US deal with National Grid a significant milestone

This week, Kraken struck a significant deal with National Grid in the United States, marking its largest foray into the American market.

Through the partnership, Kraken will serve as the AI customer service and billing platform for 6.5 million residential, commercial, and industrial users in New York and Massachusetts.

Amir Orad, CEO of Kraken, emphasized the scale and significance of the move.

“With National Grid leading the way, we’re setting the stage for what’s next in the energy world – and we’re just getting started,” he said.

The deal makes National Grid the first major US utility to fully adopt Kraken’s platform.

The move into the American market has not been without caution though.

Orad acknowledges that the US energy sector is deeply conservative, fragmented by state regulations, and saddled with aging infrastructure.

But with a market hungry for modernization, Kraken’s entry is being seen as a wake-up call.

“The US is probably the most conservative market in energy,” Orad said in the WSJ report, however, adding that it was also a very large market and needed a lot of help because of more regulations, more distributed energy, more data centers.

We believe this will be a wake-up moment for the industry, that the time has come to seriously look at modernizing.

In Texas, Octopus is already offering real-time usage insights and incentives to encourage energy-efficient behaviour.

The company sees the potential to replicate this tech-driven engagement model nationwide.

“Zero Bills” project in UK driving tech in the energy sector

Back home in UK, a standout example of Octopus’s technology-driven approach is its “Zero Bills” project launched last year.

Homebuyers were offered a decade of free energy if they purchased properties embedded with green tech such as heat pumps, solar panels, and EV chargers.

Kraken was instrumental in monitoring energy flows and usage, helping create an optimal blueprint for a self-sustaining, energy-efficient household.

These homes allowed Kraken to learn when solar panels produced excess energy, the best time to power appliances, and how to optimize household demand to align with grid conditions.

The insights gathered could then be used to scale the model in UK or in markets overseas.

Investors buy into the tech-led clean energy model

For investors, Octopus and Kraken represent more than just green energy—they are catalysts for consumer empowerment and systemic change.

Bill Rogers, head of sustainable energies at the Canada Pension Plan Investment Board, said Octopus stood out not for its retail offering, but for how it enabled customers to engage with the energy transition.

“We identified Octopus as a leader in helping consumers shift behaviour toward cleaner energy use, a critical but often overlooked part of decarbonizing energy systems,” he said in the WSJ report.

Origin Energy’s CEO Frank Calabria echoed the sentiment, citing Kraken’s role in his company’s digital transformation in Australia.

Origin now holds a 22.7% stake in both Octopus and Kraken.

Other notable investors include Generation Investment Management, chaired by Al Gore, the California Public Employees’ Retirement System (CalPERS), and Japan’s Tokyo Gas.

Plans to reach 100 million customers globally by 2027

After already marking a foray into the US, other markets on the company’s radar include France, Italy and Japan.

Additionally, Octopus and Kraken have found eager partners not just in the West but in China as well.

Jackson recently spoke at the Sino-UK Entrepreneur Forum in London, highlighting collaborations with Chinese firms like BYD and Envision.

“My experience with Chinese companies is they move so fast and with great ambition,” he said, citing a conversation in which Envision promised a three-month turnaround for a project that would have taken years in the West.

Jackson praised China’s long-term vision in accelerating the energy transition.

“While the rest of the world hesitates, China is moving faster—and it’s going to reap the benefits. We want to take those benefits to the rest of the world through partnerships.”

Currently, Kraken is contracted to manage 70 million customers globally, with plans to reach 100 million by 2027.

Jackson believes even that number could eventually stretch to one billion.

Given the rapid expansion, growing investor trust, and the technological prowess embedded in Kraken, that ambition is no longer outlandish—it may be inevitable.

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Apple’s decision to expand its manufacturing footprint in India has triggered a sharp response from US President Donald Trump, who warned on Friday that iPhones sold in the United States must be made domestically—or face heavy tariffs.

The warning marks a new escalation in Trump’s global tariff strategy, directly targeting one of the world’s most valuable companies.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted on Truth Social.

“If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.”

The move marks Trump’s first direct trade threat against a single company, setting a precedent for potential future action against other multinationals who rely heavily on overseas production.

Apple shares fell more than 3% in premarket trading after the post, dragging down broader market sentiment.

Dow Jones Industrial Average futures dropped by 112 points, or 0.3%, while Nasdaq 100 and S&P 500 futures both declined by 0.4% and 0.3%, respectively.

Source: Truth Social

Trump’s warning follows report about Foxconn’s $1.5bn plant in India

The president’s statement comes on the heels of reports about Apple’s key supplier, Foxconn’s plans to invest $1.5 billion in a new component plant near Chennai, India, further entrenching the country’s position in Apple’s global supply chain.

According to a Financial Times report, the plant will assemble iPhone display modules, which play a vital role in the touchscreen interface and visual quality of the device.

Two Indian government officials told FT that the facility, located in Tamil Nadu’s Oragadam industrial region, has already received clearance from local authorities.

It is expected to create around 14,000 jobs and become one of the largest electronics-sector investments in the country.

Foxconn disclosed the investment via a filing on the London Stock Exchange this week, noting that the funds will be routed through its Indian subsidiary, Yuzhan Technology India.

Currently, Apple manufactures around 85% of its iPhones in China, with India accounting for roughly 15%.

The company has been slowly increasing its Indian production share, partly to diversify its supply chain away from China amid rising geopolitical risks and to leverage India’s more favourable trade ties with the United States.

Escalation of frustration

Trump’s threat follows a more measured statement he made last week on the same issue

At an event in Qatar last week, Trump revealed that he had directly confronted Apple CEO Tim Cook about the company’s growing operations in India, despite its pledge to invest $500 billion in the United States.

“I had a little problem with Tim Cook yesterday,” Trump said. “I told him: ‘Tim, you’re my friend. You’re coming here with $500 billion, but now you’re building all over India. I don’t want you building in India.”

He accused Apple of taking advantage of preferential treatment in the US while concentrating its manufacturing overseas, especially in China.

“We’ve treated you really good,” he said. “Now you got to build for us.”

The high costs of Apple’s US manufacturing

Despite political pressure, shifting iPhone assembly to the United States remains economically challenging.

Industry analysts estimate that relocating production would cause labour costs to skyrocket—from $290 per month per worker in India to about $2,900 under US wage laws.

This would increase the cost of assembling each device from around $30 to $390.

Such a move could slash Apple’s profit per iPhone from $450 to just $60 unless the company raises its prices.

Some estimates suggest that building the devices entirely in the US could push the retail price to nearly $3,000—three times the current price point.

This cost disparity has long been a key reason for Apple’s international production strategy.

While India offers relatively lower costs and improving infrastructure, bringing manufacturing stateside would be financially unsustainable without a significant increase in retail prices or a dramatic reduction in margins.

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President Donald Trump on Friday said he is recommending a 50% tariff on goods imported from the European Union, citing a lack of progress in trade talks with the 27-nation bloc.

The proposed tariffs would take effect on June 1 and mark a sharp escalation in tensions between Washington and Brussels.

Writing on his social media platform Truth Social, Trump said, “The EU has been very difficult to deal with…our discussions with them are going nowhere!”

The announcement came less than 30 minutes after Trump threatened Apple with a 25% tariff on iPhones if the company does not begin manufacturing them within the United States.

The dual threats reflect Trump’s increasingly aggressive trade posture as his administration races to strike deals before existing global tariff agreements expire in July.

Source: Truth Social

Brussels awaits scheduled call between EU and US trade representatives

The European Commission declined immediate comment, saying it would await the outcome of a scheduled call between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer, set for 15:00 GMT.

The call is expected to be tense, as Greer reportedly plans to inform Sefcovic that recent EU proposals fall well short of US expectations.

The timing of Trump’s announcement surprised many in Brussels.

Just weeks earlier, the US had agreed to a 90-day pause on “reciprocal” tariffs, offering both sides time to negotiate.

That truce was meant to stabilize markets following Trump’s ‘Liberation Day’ announcement on April 2, which had already roiled investors by introducing a 20% tariff later revised down to 10%.

Currently, EU exports to the US are only subject to the new “baseline” tariff.

A shift to 50% duties would represent a dramatic departure and potentially provoke retaliatory measures from Europe.

Market reaction swift and negative

The financial fallout from Trump’s statement was immediate.

European stocks fell sharply, with the Stoxx Europe 600 index down 1.9%. Germany’s DAX dropped 2.3%, France’s CAC 40 fell 2.8%, and the UK’s FTSE 100 lost 1.3%.

Sectors most vulnerable to global trade volatility were hit hardest.

Banking stocks sold off heavily, with Deutsche Bank and Societe Generale losing 6% and 5.5% respectively.

Italian lender Unicredit was down 4.2%.

The regional Stoxx Banks index slumped 3.6% as investors assessed the indirect risks to lenders from a potential economic downturn triggered by tariffs.

Consumer cyclical and luxury goods sectors were also under pressure.

Swatch Group and Ray-Ban maker EssilorLuxottica were each down about 5%.

Bond markets, a typical haven during uncertainty, saw increased demand.

Germany’s 10-year bond yield fell 8 basis points to 2.56%, while yields on French, Italian, and Swiss bonds also declined.

Bond yields move inversely to prices, meaning investors were moving money into safer assets.

Economists warn of stagflation risks

Commenting on the potential consequences of such high tariffs, Chicago Federal Reserve President Austan Goolsbee said,

To go to 10% was already the highest tariff rate we’d had on the world in 90 years. To go to 50% is a completely different order of magnitude.

Speaking on CNBC’s Squawk Box, Goolsbee warned the tariffs could create a “stagflationary” scenario by increasing production costs and slowing output, all while raising consumer prices.

“That’s the Central Bank’s worst situation,” he added.

The EU was the second-largest buyer of US goods in 2022, importing nearly $351 billion worth of American products.

A 50% tariff could severely impact transatlantic trade flows and unsettle multinational corporations relying on open trade channels.

Trump’s broader strategy remains unclear

The Trump administration is currently in talks with over a dozen governments in an effort to renegotiate trade deals before automatic tariff resets take effect in early July.

However, several foreign officials have expressed concern over Washington’s unpredictable demands, noting the difficulty in making concessions when tariffs can be reimposed without warning.

Trump has long argued that European nations benefit disproportionately from trade with the United States.

His push for “reciprocal” tariffs seeks to align duty rates, though critics say such measures risk igniting full-blown trade wars and undermining global supply chains.

With less than two weeks remaining until the proposed 50% tariff would take effect, attention now turns to upcoming discussions between US and EU trade officials.

A failure to find common ground could deepen the rift between two of the world’s largest economic blocs.

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Apple is staring down a major supply chain and pricing dilemma after President Donald Trump on Friday threatened to impose a 25% tariff on all iPhones sold in the United States unless the tech giant begins manufacturing the devices domestically.

Trump’s remarks, posted on Truth Social and reiterated later to reporters at the White House, are the latest escalation in his push for US-based production by large multinationals.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote, warning that otherwise “a Tariff of at least 25% must be paid by Apple.”

The president’s comments come as Apple has been ramping up production in India, seeking to diversify away from its heavy reliance on Chinese manufacturing amid rising geopolitical tensions and pandemic-era disruptions.

CEO Tim Cook recently said more iPhones sold in the US would be made in India, a shift that may now be politically fraught.

Analysts say iPhone making in the US unfeasible; say threat a negotiation tactic

Apple shares dropped almost 3% on Friday trading following Trump’s post, falling to $195.44.

The prospect of steep tariffs raised concerns across financial markets, with analysts warning of significant cost implications and logistical hurdles should Apple try to comply.

Wedbush analyst Daniel Ives estimated that manufacturing iPhones in the US could push retail prices to $3,500, a dramatic increase from today’s average $1,000.

“We see no chance that iPhone production starts to happen in the US in the near-term given the upside down cost model and Herculean-like supply chain logistics needed for such an initiative,” Ives wrote in a research note on Friday.

Morningstar analyst William Kerwin echoed those sentiments, describing domestic iPhone manufacturing as unfeasible in the medium term.

“To us, this is a negotiating tactic aimed at driving greater US investment from Apple, likely in the form of domestic chip investment and potentially production of lower-volume devices than the flagship iPhone,” he said.

Potential strategies for Apple under tariff threat

Faced with this new pressure, Apple may explore various strategies to blunt the impact of a potential tariff hike.

Morgan Stanley analyst Erik Woodring suggested that Apple could cut less profitable models from its iPhone lineup, focusing instead on higher-margin units to reduce the blow.

A “targeted iPhone mix shift could significantly minimize the tariff headwind,” Woodring wrote in a note to clients last month.

Another option floated by analysts involves stretching the product release cycle.

Bank of America analyst Wamsi Mohan said Apple could switch from an annual to a biennial launch schedule, simplifying supply chains and production timelines.

Apple may also decide to confront the administration directly, publicly tying higher prices to Trump’s trade stance.

One proposal discussed in analyst circles is for Apple to add a “tariff surcharge” to each US sales receipt, making consumers aware of how much more they’re paying because of the new tariffs.

Constraints that limit Apple’s US production

For now, most analysts agree that relocating iPhone production to the US is impractical.

Apple’s manufacturing relies heavily on China-based partner Foxconn, which employs hundreds of thousands of workers and taps into a dense web of suppliers, logistics firms, and engineers—none of which are easily replicable in the US.

“The idea of Apple producing iPhones in the US is a fairy tale that is not feasible,” Ives said, adding that even if the company decided to pursue the move, it would take five to ten years to make it a reality.

The challenges are not new.

In 2011, when President Barack Obama asked Apple co-founder Steve Jobs what it would take to make iPhones in the US, Jobs reportedly replied, “Those jobs aren’t coming back,” referring to Asia’s unmatched industrial infrastructure and labour scale.

Some of Apple’s suppliers, such as Taiwan Semiconductor Manufacturing Company, are expanding US operations under pressure.

However, Foxconn appears unlikely to significantly boost its American footprint.

The firm scaled back a highly publicized $10 billion Wisconsin plant and has instead committed $1.49 billion to its India operations.

Likely bearing of 25% tariff on Apple’s earnings

UBS analyst David Vogt estimated that if a 25% tariff were applied to 70 million iPhones annually imported from China and India, Apple’s earnings per share could take a hit of about $0.51.

Wall Street currently expects Apple to earn $7.18 per share this fiscal year.

As pressure mounts from Washington, Apple is left navigating a volatile mix of political demands, economic realities, and consumer expectations.

Whether Trump’s threat is a hard policy shift or a negotiation tactic, it has already forced a reckoning over the limits of globalization and the fragility of tech supply chains.

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