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Solving a Defining Infrastructure Challenge of the AI Era: Investing in Stone Power Technologies
AI converts energy to intelligence. To meet the demand for AI, we need to build more datacenters and chips, but above all we need more energy. Backlogs for power turbines extend into the early part of the next decade.
That’s why we invested in Stone Power Technologies via Deepwater Venture Fund II.
Stone is a U.S. based power infrastructure company building gas turbines optimized for rapid deployment to AI datacenters. The company is targeting a market where demand is acute and delivery timelines from incumbents are structurally constrained.
We believe power generation is one of the defining infrastructure challenges of the AI era. Turbines power ~80% of the global power grid, representing ~$2 trillion in annual power generation, while the ex-China turbine installation market is estimated at $37 billion with an additional $45 billion in service contracts. Stone has the opportunity to become a critical supplier to AI datacenters and capture meaningful share of the $80 billion-plus turbine market.
Stone is uniquely positioned to attack the current bottleneck by rethinking how turbines are designed and manufactured. Incumbent OEMs such as GE Vernova, Siemens Energy, and Mitsubishi face 5+ year backlogs and depend on a limited supplier base for critical forging and casting capacity. Stone plans to vertically integrate key manufacturing processes while using software-defined hardware development to accelerate engineering workflows.
Stone was founded by Dylan Morris, a hardware design and manufacturing expert with experience at Anduril, Rainmaker, Lockheed Martin, and a bootstrapped manufacturing company he previously co-founded. We believe Dylan’s combination of defense-tech execution speed with deep turbomachinery expertise gives him the rare mix of urgency, technical depth, and manufacturing experience to buildStone into a category-defining company in power infrastructure.