Gigascale Capital, the venture firm led by former Meta CTO Mike Schroepfer, raised $250 million to back climate-friendly solutions for energy and material shortages. This second fund continues Gigascale's focus on "rebuilding the physical economy" despite conventional wisdom souring on climate tech investments. The firm has already backed high-profile startups including Commonwealth Fusion Systems and Form Energy, establishing itself as a contrarian player in the climate investment space.

Power represents a significant focus in the new fund. Rising electricity demand from AI and electrification has created grid connection challenges. Natural gas turbines now have waitlists stretching into early 2030s, giving energy startups an opening. Schroepfer noted that developing independent power will become a competitive advantage for energy-intensive industries seeking reliable energy access.

Gigascale's approach targets systems that are cheaper, faster, and more reliable—qualities Schroepfer says drive adoption and climate impact. The fund will also explore grid infrastructure, critical minerals, and physical AI opportunities. This positions Gigascale to profit from solving real-world energy constraints while advancing climate goals, demonstrating that climate tech can deliver financial returns alongside environmental benefits.