Former Meta CTO Mike Schroepfer launched Gigascale Capital to back firms rebuilding the physical economy. The firm closed its inaugural institutional fund this month, a $250 million vehicle aimed at pre‑seed to Series A hard‑tech startups. Schroepfer argues that surging AI compute demand will trigger a power‑supply crunch, making infrastructure the decisive moat for future winners. He also cites his Meta infrastructure experience as proof point.

Gigascale’s portfolio already exceeds 25 companies, with energy projects dominating a $2 trillion market the firm sees as the “single biggest area” for disruption. Partners Victoria Beasley and Evaline Tsai bring climate‑focused and semiconductor expertise, respectively, broadening bets from solar farms to AI‑powered inference chips. Schroepfer stresses hardware failure modes differ sharply from software, demanding larger capital and longer development cycles. These sectors draw climate‑aligned capital.

The thesis hinges on converging cost declines in batteries, electrolyzers and solar cells with exploding demand from data centers, electric‑vehicle charging and on‑shoring factories. Schroepfer warns that building power lines or new plants takes years, so firms that can deploy faster gain a competitive edge. Gigascale’s early bets illustrate a shift where investors chase tangible assets rather than cheap code. This focus reshapes venture allocation.