Startups developing data centers to power AI are among the most capital-hungry businesses around right now. Many are raising billions of dollars in equity and debt to build complicated facilities.
There are few like Houston-based Giga Energy, however. Founded in 2019 by two Texas A&M juniors studying finance and industrial distribution, Giga has generated more than $270 million in revenue in its lifetime while being almost completely bootstrapped, according to CEO and cofounder Matt Lohstroh.
The startup, which has raised just $3.4 million in equity funding and less than $5 million in debt, builds and sells equipment such as transformers and switchgear which help to regulate the power flow in data centers, some of which are being used by cloud provider CoreWeave, he said.
Giga also builds its own Nvidia-based AI data centers, with plans to rapidly expand that part of its business. That suggests it will have to raise more capital soon.
