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Whether they can continue to do so depends on how long the green freeze lasts.

This story is part of a Heatmap series on the “green freeze” under Trump.
By now I’ve come to expect the responses. “We’re continuing to assess the situation and aren’t able to speak on it at this time.” “We are not able to provide comment on this matter.” Oftentimes, all I’ll receive is a Gmail prompt to an unanswered email: Sent 9 days ago. Follow up?
This week, my colleagues and I are covering the “green freeze,” an economy-wide trend of canceled clean energy projects, a retreat from climate tech investments, and a tightening of purse strings perhaps best epitomized by Breakthrough Energy’s pullback from grantmaking and policy advocacy. I aimed to look more closely at how nonprofits are navigating the new political and economic landscape — with climate no longer a key policy focus of the White House, would related causes lose their appeal to donors? Or would the opposite be true: Given the federal funding gap, would philanthropy surge to fill the vacuum? Would it even be prudent to do so?
“In my experience, when the government takes a step back from a particular impact area — and climate is no different — often philanthropists end up leaning in,” Amy Duffuor, a co-founder and partner at Azolla Ventures, told me. Azolla invests in climate tech start-ups using both traditional venture capital and catalytic capital, the latter of which comes primarily from philanthropists. But for many organizations, especially at the grassroots level or in the environmental justice space, it might not be that simple.
Talking about donors is always delicate and awkward, but I was still surprised by how closed-lipped local and national nonprofits became when I started asking these questions. Many groups that have spoken candidly with Heatmap News in the past declined to talk to me on the topic, even on background. One media relations manager for a conservation organization that receives federal grants delicately implied, while turning down my request for comment, that no one wants to stick their neck out when there’s a climate witch-hunt going on.
“Nonprofits have to be really conscious of where their support comes from and how they protect that,” Cyrus Wadia, the CEO of Activate, a nonprofit that offers fellowship support for early-stage science entrepreneurs looking to launch climate start-ups, told me when I explained what I was seeing.
He’s right that the wariness is understandable. The Trump administration is attempting to claw back some $20 billion in funds awarded to climate nonprofits under President Joe Biden, including hundreds of grants from the Environmental Protection Agency, many of which were earmarked for local environmental justice nonprofits. A number of these nonprofits are, as a result, facing unexpected funding shortfalls, forcing them to consider cuts to staff and programs in the weeks and months ahead. “If this lasts much longer … then we’re going to start seeing more organizations saying this program and that program have to shut down, they’re having to reduce capacity because they can’t make payroll, or they’re closing their doors,” Rick Cohen, the chief communications officer for the National Council of Nonprofits, recently told The Chronicle of Philanthropy.
There is a sense among some in the nonprofit space that the hesitation among donors might be more of a reassessment than an actual freeze. “There is definitely a ‘pause and wait and see and figure out our strategy and maybe start over’ moment that I think a couple of these foundations are having,” Lara Pierpoint, the managing director of Trellis Climate — a 501(c)(3) that helps philanthropists, donors, and foundations invest in climate opportunities that wouldn’t go forward without philanthropic support — told me. A policy director for a national policymaking and advocacy group similarly suggested to me that the election of Trump caught some of their donors flat-footed, adding that they “didn’t have strategies ready to go.”
That doesn’t necessarily indicate a broader trend. “The good news is that we aren’t seeing a huge amount of change just yet among our donor set,” she told me. “I think our donor set tends to be folks who are already very focused on climate,” she went on. “They are not only not afraid of the word ‘climate,’ but I think they really see the need to focus on it, particularly given what’s going on.”
She did note, however, that it’s still early, and that there are two main headwinds she and her peers are facing. “Some of the donors that we’ve spoken to have said, ‘Hey, we can’t really talk right now or commit to anything because we’re doing a wholesale reevaluation of our portfolio and how we approach giving,’” she said. Additionally, philanthropists who think of themselves more as investors might have questions about how viable their investments will be, given what’s happening with both federal priorities and the gyrating economy.
As my colleague Katie Brigham has reported, climate tech investment had already started to slow down from the frothy days of the early Biden administration; some companies had started to pivot away from promoting the clean, green climate perks of their business models even before Trump took office. (Bloomberg has labeled this semantic game “greenhushing”; the general wisdom is, “it’s still a great time to start a climate startup. Just don’t call it a climate startup.”) Anxieties about the economy can, as a rule, also impact the giving patterns of donors.
“At the end of the day, for very good reasons, philanthropists want to invest in projects and ideas that are likely to be successful and go forward and do the things they are meant to do,” Pierpoint said. “And all of that is under threat right now because climate tech is hard, it’s expensive, it’s competing with fossil fuels, and counting out government support and tax credits, the picture is daunting.”
Others were similarly cautiously optimistic about the days ahead. “There’s a gap, and philanthropy is often well-suited to close gaps,” said Duffuor, the partner at Azolla Ventures. (Both Azolla Ventures and Trellis Climate are part of Prime Coalition, a nonprofit focused on climate financing.)
Like Pierpoint, Duffuor expects to see a “doubling down” by philanthropists who are motivated by climate. Donors who were more on the cusp to begin with — who saw climate investment as en vogue, or were more driven by financial returns — might back away, she agreed. But it seems unlikely that people who genuinely believe in climate causes will be dissuaded by who’s in the White House. “I think people are waiting to see where the gaps are most effective,” she said.
Wadia, the CEO of the venture capital firm Activate, who spoke with me from the CERAWeek energy conference in Houston, agreed that while the language around giving may change, he is still seeing a “momentum for innovation.”
“If we all just step back, what are we really trying to do?” he said, speaking of nonprofits, philanthropists, and start-ups alike. “Everybody might have a different version of how we do it, but we’re all working towards trying to make the planet a better place for people — for all species on this planet. There’s a general consensus that’s a good thing.”
The nonprofit sector is large and diverse, and the impacts of the political and economic moment will not be felt equally. Local environmental justice nonprofits that relied on federal grants will undoubtedly be worse off than the better-insulated climate financing organizations like Activate, although the turbulence at Breakthrough suggests that even the deepest of pockets can still close to climate causes. (Tellingly, companies funded by Breakthrough’s investment arm, Breakthrough Ventures, do not appear to be affected.) The tension and anxiety aren’t likely to break soon; uncertainty and fear remain pervasive.
If anything can be counted on, though, it’s that climate causes — whether local, national, community-focused, or innovation-related — will need their donors more than ever. The people I spoke with expect them to step up. But is that even a good thing?
“It’s not just the immediate impact — the question mark around grant funding and things like that,” Pierpoint of Trellis Climate told me. “It’s also the question of, is this, in the long term, going to reduce trust in the federal government in a way that lowers investment when folks are trying to leverage dollars?” She paused. “I think it would be bluntly catastrophic for climate development if we get into that world.”
Editor’s note: This story has been updated to reflect the fact that Activate is a nonprofit, not a venture capital firm.
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SoftBank’s error and Nvidia’s scandal suggest data centers may have already peaked as an economic and energy trend.
This is Heatmap Daily, a weekday digest written by our executive editor. Subscribe here.
Covering energy and climate change sometimes means seeing certain stories in a different light than others. And a particularly vivid hue illuminated The Wall Street Journal’s report today that the Japanese conglomerate SoftBank Group is taking a $3.7 billion loss on several gigawatts’ worth of natural gas turbines.
For the Journal, the big news is that SoftBank and its billionaire founder, Masayoshi Son, are failing to capitalize on the artificial intelligence boom. But at Heatmap, we’re thinking about the turbines.
The data center boom and the return of electricity load growth has depleted the world’s supply of natural gas turbines. SoftBank had purchased reservations for about 13 gigawatts of turbines, according to the Journal. That’s a staggering amount of electricity — it could meet New York City’s maximum power draw on the hottest part of a summer’s day. The conglomerate now seems set to dump reservations for about four gigawatts’ worth. Keeping a reservation, it turns out, really is harder than making it.
Most of those rotors were reportedly from GE Vernova, one of the world’s largest producers of gas turbines. GE Vernova’s order list for gas turbines has been filled for nearly two years and the waiting list now stretches into 2031. That has led data center developers, hungry to get power as soon as possible, to reach for ever dirtier forms of electricity generation, including diesel generators and even old jet engines.
On that front, SoftBank’s failure to sell the turbines to a higher bidder suggests (albeit weakly) that demand for energy-producing assets might not be as strong as the AI boom’s backers once thought. SoftBank was already set to send about 9 gigawatts of turbines to the enormous Trump-backed OpenAI data center in Pike County, Ohio. The roughly remaining four gigawatts will be released back their manufacturers. (One thing this news can’t quite tell us, alas, is what type of turbine set-up will be used in the Pike County facility, which will be the world’s largest gas-fired power plant if it is build to completion. Recent public filings have suggested the facility isn’t planning on using any turbines in the more efficient combined-cycle configuration, which would mean the plant’s carbon intensity will be worse than most other new natural gas plants. But we’d love to hear any tips on this front.)
To zoom out for a second, I’m struck by how the AI bubble has been replaced by an AI muddle. As I wrote this, news emerged that Nvidia is preparing to fire its CEO, Jensen Huang, for his affair with a Chinese woman who is alleged to be a spy. (He had at least one more affair with another Nvidia executive, according to The New York Times.) Under Huang’s leadership, Nvidia has invested in a sprawling and sometimes circular network of energy-related companies, including Emerald AI, a startup that helps data centers flex their electricity consumption, and Redwood Materials, a battery recycler and producer led by the former Tesla executive J.B. Straubel. Huang has used Nvidia’s enormous balance sheet to buy down the risk of other AI and AI-related companies, propelling the overall AI trade to become the biggest story in American markets.
Now that balance sheet is in peril: Nvidia’s stock is already down 11% over the past five days, and it has fallen another 8% in after-hours trading since news broke of Huang’s ouster. If the chip designer’s financial network began to fray — or even if the next CEO had a lower risk appetite than Huang — then its demise could impact a much larger set of firms.
Even before the Huang scandal broke, companies at the center of the AI trade were showing signs of weakness. Alphabet, Meta, and Microsoft are all down on the month. Nvidia was already lagging by about 10% on the month before its hebdomas horribilis began, too. The memory and chip makers Micron and Applied Materials are both down more than 25% in about the same period, and GE Vernova and Oklo have fallen nearly 20%. Although the data center company Coreweave rebounded on an earnings beat today, it’s still down 24% on the month and nearly 50% since May.
The market rout isn’t total — Anthropic seems likely to enjoy one of the largest IPOs ever in the next week (although perhaps not with quite as large a valuation as its investors once imagined). And the underlying technology of AI seems to be getting worryingly better all the time. But even though the politics of data centers and AI seem set to dominate the new Washington, I’m wondering if data centers as a mainstream economic trend might have already peaked. Americans voted for a more subdued AI boom in the midterms. Now it seems like they might get it ahead of schedule.
Lunar Energy’s latest AI-powered system aims to integrate EVs into the automated demand response mix.
In theory, it’s straightforward to assemble the smart energy home: Solar panels, home backup batteries, and electric vehicles, plus smart thermostats, heat pumps, and water heaters — all the individual pieces can be had for the homeowner who can afford the up-front cost. The challenge is getting all those pieces to talk to one another.
Bay Area-based Lunar Energy is one of the tech firms that’s been trying to crack this problem. Today, it announced an upgraded version of its artificial intelligence-powered home energy control system, which not only integrates all those separate systems but also responds tactically to energy markets. CEO Kunal Girotra told me Lunar AI saves its users money by monitoring their home 24/7 and making decisions to charge, not to charge, or discharge so that they save the most money.
“Utilities are all moving to almost-real-time changes of rates,” he said. “You need software to handle that for you. I think that the race is on for who has the best AI machine learning algorithms to save the most amount of money. And so far, we seem to have a head start.”
Lunar’s first-generation system focused on generation, storage, and control. In other words, it connected elements like a home’s rooftop solar panels with the backup battery the residents might keep in the garage, using the AI to decide when to meet the home’s real-time energy needs with solar versus grid energy versus stored power. What it didn’t have was the ability to work with electric vehicles to manage charging and use the car’s battery as a bonus source of energy.
To fix this, Lunar has built its own bidirectional EV charger — one that can charge up the battery or discharge the car’s battery for a secondary use, like backing up the home’s power supply. Girotra, formerly the head of Tesla Energy, told me the problem with that functionality to this point has been the connection point between the car and the home electrical system. Carmakers and other companies in the space didn’t have the deep experience with electrical certifications to make the process seamless, he tells me. That led to setups like the original Ford Charge Station Pro, which required several different wall-mounted electrical boxes to connect the F-150 Lightning EV to the home.
Lunar’s charger is built to connect to its customers’ existing home Lunar energy system, which includes a microgrid interconnect device they call Lunar Bridge that islands the home in case of a power outage on the grid. In that way, the power stored in the EV battery is ready to back up the home in case of a blackout without any additional work — or to be optimized as part of a fully smart home that’s making money as part of a virtual power plant.
The company’s setup allows for another fun feature: “slow” charging that’s not slow at all, but actually two or three times as fast as the Level 2 charging most EV owners use to recharge their batteries overnight. Electric cars in the U.S. can typically take on only about 11 kilowatts of AC power from one’s home because of the limitations of their on-board hardware. Because Lunar’s system is fully DC, however, Girotra said the company decided to build a DC home charger, one that — like a Tesla Supercharger or other DC fast chargers out in the world — isn’t limited by that power cap. Lunar said it could use a combination of power from the grid, home solar, or home batteries to charge an EV at up to 25 kilowatts. That’s enough to recharge an EV in three to four hours rather than six to eight.
“If the standards get high, and if everybody sees cars can get charged in three hours, then all of a sudden people are like, ‘Wow, this is how I want it,’” he said. “Especially for 25% of the users who are like me, who always are running low on charge and they don’t mind a boost every now and then.”
Some of the other improvements in the second-gen system are more incremental. An inverter that’s 40% more powerful helps Lunar get its system up to enterprise scale. That’s crucial, as the world moves toward a place where more homes and businesses employ battery backup systems. Lunar’s new batteries come in modular 5 kilowatt-hour blocks ranging from 10 kilowatt-hours to 30 kilowatt-hours in a single unit and scale up to 300 kilowatt-hours for home or small commercial use; there’s also new pad-mounted configurations with capacity up to 1 megawatt-hour.
Batteries, though, are the simple part. Everyone from EV makers like Rivian to utilities like Octopus Energy is racing to make a person’s or a business’s batteries and solar panels and electric cars work for them, using the power of AI to account for moment-to-moment changes in energy prices and supply. Lunar’s new tech makes the case that the most important element is a single brain to integrate every last smart, electrified thing in your house.
The fundraise comes on the heels of a $50 million grant from the Department of Energy.
Almost all lithium-ion batteries on the market rely on graphite for their anodes, more than 90% of which is processed in China. That concentration has created a chokepoint in the Pentagon’s supply chain as the military increasingly turns to batteries to help its transportation network operate more quietly and reduce reliance on complex refueling logistics.
So when Congress passed the latest National Defense Authorization Act at the end of 2025, barring Chinese-linked battery materials from military use starting in 2028, Coreshell saw an opening. While the California-based silicon-anode battery startup had previously focused on automakers as its beachhead customers, it’s now shipping its first battery cells to the military for use on Navy ships and Army ground vehicles. On Wednesday, Coreshell announced a $30 million Series B to scale up manufacturing operations to meet the needs of this growing customer base.
“We’re entering a new stage where we’re no longer, I would say, demand limited,” Coreshell’s CEO Jonathan Tan told me. “This year we’ve had to put on second and third shifts, work nights and weekends, just to get the product out the door.”
Coreshell sets itself apart by going a step further than the NDAA requires. The law doesn’t make suppliers trace battery materials all the way back to the mine, which would be exceedingly difficult given China’s dominance across the battery supply chain. But Coreshell has nevertheless eliminated Chinese sourcing from its anodes by replacing graphite with silicon mined and refined in the U.S. by Ferroglobe, one of its Series A investors.
Ferroglobe and global investment firm Access Industries led the latest round, with defense contractor ADS also joining as a new strategic investor. The financing comes on the heels of a $50 million Department of Energy grant that Coreshell secured in August as part of a program to strengthen the domestic battery supply chain. That funding will support the company’s first commercial-scale facility, a 2-gigawatt-hour factory.
That’s about 20 times the size of the 100-ish-megawatt-hour plant the startup had originally envisioned, as the DOE grant has allowed Coreshell to “expand much further than we were originally expecting,” according to Tan. The company is now evaluating several potential U.S. sites and expects to announce its selection early next year. For now, it relies on unnamed contract manufactures, along with its small pilot line in San Leandro, to produce its cells. But once the gigafactory gets up and running, the startup plans to bring electrode production in house by 2028, followed by full cell assembly in 2029.
Building this plant will ultimately require significant additional capital. But Tan believes this latest vote of confidence from the federal government will help Coreshell to diversify its capital stack as it continues to fundraise. “That’s one of the great things about having such a notable DOE award is that it also allows us to attract multiple forms of capital,” he told me.
Silicon has long been recognized as a promising alternative material for battery anodes, as it can store far more energy than graphite. The catch is that it tends to swell during charging, causing it to break down quickly and ultimately leading to a much shorter cycle life. Coreshell says it’s extended its anode’s lifespan by giving it a proprietary coating, which Tan told me back in April essentially means “painting the inside of your battery” with an ultra-thin protective layer.
Other companies, such as Sila Nanotechnologies and Group14 Technologies, are also working to commercialize silicon anodes. But Coreshell says many of its competitors rely on more highly engineered, expensive forms of silicon, such as silane gas. By contrast, Coreshell uses metallurgical silicon, a cheap, raw commodity already widely used in aluminum alloys. That, Tan argues, gives the company a cost advantage not only over its competitors, but potentially Chinese graphite too.
Coreshell hasn’t yet demonstrated that its cells can meet the performance demands of the automotive industry, however. When the company raised its Series A in early 2025, it said it expected its automotive cells to exceed 1,000 charge cycles while retaining 80% of their original capacity. But Tan told me many defense applications don’t require such demanding performance targets, as Navy ships and ground vehicles are “not intending to have as many miles or missions or use cases on that same battery” as a consumer EV would.
That doesn’t mean the company is abandoning its automotive ambitions. As Tan pointed out, electric vehicles remain by far the largest source of global and domestic battery demand. “It’s natural for us to obviously utilize the security supply chain first,” he told me. “That allowed us to really get to commercialization, revenue, and production faster, because automotive qualification is this longer journey. But ultimately, we want to do both of those and more.”