Gigascale, the venture firm led by ex-Meta CTO Mike Schroepfer, has recently raised $250 million to support startups rebuilding the physical economy through climate tech. The fund will focus on energy, grid infrastructure and critical minerals.

The decision to continue with an overt climate focus stands in contrast to a broader industry retreat from 'climate tech' investments. However, Schroepfer's firm has already backed some high-profile climate tech startups like Commonwealth Fusion Systems and Heron Power, demonstrating his commitment to the sector.

While solar power commands much attention as a clean technology, Schroepfer is keen on exploring other opportunities. He believes that AI and broader trends towards electrification are making it harder for companies to connect to the grid, prompting many to develop their own energy sources. However, competition in this space remains fierce.

The new fund aims to invest beyond just generation, into grid infrastructure and physical AI as well. Schroepfer argues that backing startups that offer cheaper, faster, and more reliable solutions will drive adoption and scale climate impact.