Connect with us

Published

on

Airhive is one of the dozen companies Frontier has facilitated carbon removal purchases from on behalf of Stripe, Shopify and H&M. Airhive is developing a geochemical direct air capture system.

Photo courtesy Airhive.

Stripe, Shopify and H&M Group announced Thursday they are spending $7 million on carbon removal from a dozen new startups.

The deal was facilitated by Frontier, a public benefit company owned by payment processing company Stripe, which launched in April 2022 to accelerate the development of carbon removal technologies and make sure there is future demand to support the growth of the nascent industry.

Stripe, Shopify and H&M are three of the member companies of Frontier, and together, they spent $7 million on carbon removal purchases from 12 companies: Airhive, Alkali Earth, Banyu Carbon, Carbon Atlantis, CarbonBlue, CarbonRun, EDAC Labs, Holocene, Mati, Planetary Technologies, Spiritus Technologies and Vaulted Deep.

The techniques for removing carbon dioxide vary significantly: Alkali Earth applies alkaline byproducts from industrial processes to gravel on roads which acts as a carbon sink. CarbonBlue uses calcium to mineralize and remove dissolved carbon dioxide in freshwater or ocean water. Mati applies silicate rock powder to agricultural fields, where it reacts with water and carbon dioxide to produce dissolved carbon, and is starting to test its product on the rice paddy farms in India — and the list goes on.

Frontier facilitates carbon removal purchases for its member companies via multiple pathways, including pre-purchase agreements and offtake agreements. Pre-purchase agreements are generally smaller purchases where payment is made upfront and is not conditional on delivery, and the goal is to support early stage carbon removal companies.

The $7 million announced Thursday are pre-purchase agreements, and the amount of carbon expected to be removed ranges from 58 tons to 1,666 tons, depending on the startup.

Mati is one of the dozen companies Frontier has facilitated carbon removal purchases from on behalf of Stripe, Shopify and H&M. Mati applies silicate rock powders to agricultural fields where it reacts with water and carbon dioxide to produce dissolved carbon and is starting to test its product on the rice paddy farms in India.

Photo courtesy Mati

Offtake agreements are significantly larger purchases intended for later-stage companies and get paid out as the tons of carbon are removed and sequestered.

So far, Frontier has made one $53 million offtake agreement announcement with Charm Industrials to remove 112,000 tons of CO2 between 2024 and 2030. Charm sequesters carbon dioxide underground by gathering excess organic material — like corn stover — and converting that into a bio-oil, which it then pumps into abandoned oil and gas wells.

Offtake agreements with larger carbon removal companies will comprise most of the $1 billion-plus that Frontier has secured from its member companies, which also include Alphabet, Autodesk, JPMorgan Chase, McKinsey, Meta and Workday. Participation in the pre-purchase program for member companies is optional, but all Frontier members participate in the offtake purchases.

“But we still have the pre-purchase program to support the early stage companies, and really to make sure that we can get to the portfolio of gigaton scale removal that we need eventually, by starting today,” Joanna Klitzke, Frontier’s procurement and ecosystem strategy lead, told CNBC on Tuesday.

CarbonBlue is one of the dozen companies Frontier has facilitated carbon removal purchases from on behalf of Stripe, Shopify and H&M. CarbonBlue uses calcium to mineralize and remove dissolved carbon dioxide in freshwater or ocean water.

Photo courtesy CarbonBlue.

In addition to the pre-purchase agreements, Stripe is announcing on Thursday it has provided $250,000 in a research and development grant to both carbon removal startups, Carboniferous and Rewind, for a total of $500,000. Also, Stripe has provided $100,000 in funding to carbon removal start-ups Arbon and Vycarb, for a total of $200,000, in a partnership with the climate tech accelerator, Activate.

All of these efforts today are capturing minuscule amounts of carbon emissions compared with the quantity of emissions being released — humanity emitted 36.8 billion metric tons of CO2 in 2022 just to produce energy, according to the IEA. But the thought behind Frontier is that these techniques will be tested and built out over time.

And the carbon removal industry will need to grow dramatically in order for humanity to achieve its climate goals, according to the United Nations Intergovernmental Panel on Climate Change. Carbon dioxide removal cannot be a “substitute for immediate and deep emissions reductions, but it is part of all modelled scenarios that limit global warming to 2 degrees (Celsius) or lower by 2100,” the IPCC says.

Stripe Climate began carbon removal purchases in 2020 and Frontier launched a couple years later. Since then, there has been an increase in both the quantity and quality of applications, Klitzke told CNBC.

Carboniferous is one of two companies that stripe is announced Thursday that it has provided $250,000 in a research and development grant to. Carboniferous is developing a process to sink leftover surgar cane fiber and corn stover into the deep oxygenless parts of the Gulf of Mexico.

Photo courtesy Carboniferous

“In my mind, that’s a really encouraging sign that the field is growing and maturing,” Klitzke told CNBC. Frontier is seeing new approaches to carbon removal coming from a more diverse range of geographies in the applicant pool, which is also encouraging, Klitzke said.

For Frontier, the idea of carbon removal is not isolated from a primary climate goal of “really, really deep, deep emission reductions and fossil fuel phase out,” Klitzke told CNBC. “The role of carbon removal is fully to address legacy emissions and is not to be an offset or an excuse for the fossil industry.”

The rise of the carbon removal industry

Continue Reading

Technology

Google to test using AI to determine users’ ages

Published

on

By

Google to test using AI to determine users’ ages

Google chief executive Sundar Pichai speaks during the tech titan’s annual I/O developers conference on May 14, 2024, in Mountain View, California. 

Glenn Chapman | Afp | Getty Images

Google will start using artificial intelligence to determine whether users are age appropriate for its products, the company said Wednesday.

Google announced the new technique for determining users’ ages as part of a blog focused on “New digital protections for kids, teens and parents.” The automation will be used across Google products, including YouTube, a spokesperson confirmed. Google has billions of users across its properties and users designated as under the age of 18 have restrictions to some Google services.

“This year we’ll begin testing a machine learning-based age estimation model in the U.S.,” wrote Jenn Fitzpatrick, SVP of Google’s “Core” Technology team, in the blog post. The Core unit is responsible for building the technical foundation behind the company’s flagship products and for protecting users’ online safety. 

“This model helps us estimate whether a user is over or under 18 so that we can apply protections to help provide more age-appropriate experiences,” Fitzpatrick wrote.

The latest AI move also comes as lawmakers pressure online platforms to create more provisions around child safety. The company said it will bring its AI-based age estimations to more countries over time. Meta rolled out similar features that uses AI to determine that someone may be lying about their age in September.

Google, and others within the tech industry, have been ramping their reliance on AI for various tasks and products. Using AI for age-related content represents the latest AI front for Google.

The new initiative by Google’s “Core” team comes despite the company reorganization that unit last year, laying off hundreds of employees and moving some roles to India and Mexico, CNBC reported at the time. 

WATCH: Google kills diversity hiring targets, reviewing other DEI programs

Google kills diversity hiring targets, reviewing other DEI programs

Continue Reading

Technology

AppLovin soars almost 30% on earnings, guidance beat

Published

on

By

AppLovin soars almost 30% on earnings, guidance beat

Adam Foroughi, CEO of AppLovin.

CNBC

AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts’ estimates and issued better-than-expected guidance.

Here’s how the company performed compared with analysts’ expectations, according to LSEG:

  • Earnings per share: $1.73 vs. $1.24 expected
  • Revenue: $1.37 billion vs. $1.26 billion expected

Net income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year earlier, the company said in a statement.

Revenue jumped 43% from $953.3 million a year earlier.

AppLovin was the best-performing U.S. tech stock last year, soaring more than 700%, driven by the company’s artificial intelligence-powered advertising system. In 2023, AppLovin released the updated 2.0 version of its ad search engine called AXON, which helps put more targeted ads on the gaming apps the company owns and is also used by studios that license the technology.

Read more CNBC tech news

AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, the apps business has become much less important, and now the company says it is selling it off.

“Today we’re announcing we’ve signed an exclusive term sheet to sell all of our apps business,” CEO Adam Foroughi said on the earnings call.

Later in the call, the company said it has signed a term sheet for the sale for a “total estimated consideration” of $900 million. That includes $500 million in cash, “with the remainder representing a minority equity stake in the combined private company.”

Advertising revenue climbed 73% in the quarter to almost $1 billion. The ad business was previously categorized as Software Platform. The company said it made the change because advertising accounts for “substantially all of the revenue in this segment.”

AppLovin said it expects first-quarter revenue of between $1.36 billion and 1.39 billion, exceeding the $1.32 billion average analyst estimate, according to LSEG. More than $1 billion of that will come from its advertising segment, as the company said it is “still in the early stages” of bolstering its AI models.

“The roadmap ahead is filled with opportunities for iteration,” the company said in its shareholder letter. “As we execute, we believe we can continue to drive value creation for our shareholders.”

WATCH: AppLovin shares jump

Applovin shares jump more than 15% on earnings beat

Continue Reading

Technology

Cisco pops on increased full-year revenue forecast

Published

on

By

Cisco pops on increased full-year revenue forecast

Cisco CEO Chuck Robbins speaking on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.

Gerry Miller | CNBC

Cisco shares climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter results and guidance that topped Wall Street’s expectations.

Here’s how the company did against LSEG consensus:

  • Earnings per share: 94 cents adjusted vs. 91 cents expected
  • Revenue: $13.99 billion vs. $13.87 billion expected

Revenue increased 9% in the quarter, which ended on Jan. 25, from $12.79 billion a year earlier, according to a statement. The growth follows four quarters of revenue declines. The company said it had orders for artificial intelligence infrastructure that exceeded $350 million in the quarter.

Cisco now sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal year, with $56 billion to $56.5 billion in revenue. Analysts polled by LSEG had been looking for $3.66 in adjusted earnings per share and $55.99 billion in revenue. In November, the forecast was $3.60 to $3.66 in earnings per share and $55.3 billion to $56.3 billion in revenue.

Net income in the latest period slid almost 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per share, a year ago.

Revenue from the networking division totaled $6.85 billion, down 3% but more than the $6.67 billion consensus among analysts surveyed by StreetAccount.

The security unit contributed $2.11 billion. That is a 117% increase from a year earlier, thanks to the addition of Splunk. Analysts expected $2.01 billion, according to StreetAccount.

Read more CNBC tech news

Splunk, which Cisco bought in March 2024 for $27 billion, was accretive to adjusted earnings per share sooner than planned, Scott Herren, Cisco’s finance chief, was quoted as saying in the statement. Cisco’s total revenue would have been down 1% year over year if not for Splunk’s contribution, according to the statement.

Many technology companies have been trying to predict the effects from President Donald Trump’s newly established Department of Government Efficiency. But three-quarters of Cisco’s U.S. federal business comes from the Defense Department, while most of the headcount cutting thus far has occurred in other agencies, Cisco CEO Chuck Robbins said on a conference call with analysts.

“Everything seems to be progressing as we expected,” he said.

Customers do not appear to be pulling up orders before tariffs go into effect, Herren said on the conference call.

As of Thursday’s close, Cisco shares were up 5% so far in 2025, while the S&P 500 index had gained about 3%.

WATCH: Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI

Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI

Continue Reading

Trending