Cully Cavness, Crusoe’s co-founder and chief operating officer, and Chase Lochmiller, co-founder and chief executive officer.
Crusoe Energy/Andrew Schmitt
Seven years ago, the founders of Crusoe Energy set out to solve a dirty problem. Their mission was to take gas burned off by oil producers, convert it into electricity, and use that power to mine bitcoin. It turned into a good business.
But then came the artificial intelligence boom, and Crusoe co-founders Chase Lochmiller and Cully Cavness started to see a much bigger opportunity.
As the company focuses on AI and races to complete what it says could be one of most powerful clusters of graphics processing units, or GPUs, in the world, Crusoe is getting out of bitcoin mining. The company said Tuesday that it’s struck a deal to offload that operation to NYDIG, a power and financial services firm focused exclusively on bitcoin. Terms of the deal weren’t disclosed.
NYDIG will take on about 135 Crusoe employees, who will continue operating the business under the new ownership. Crusoe will become a major equity holder in the combined entity — second only to Stone Ridge, NYDIG’s parent company.
The deal includes Crusoe’s technology that captures and converts flared gas from oil fields, and more than 425 modular data centers spread across seven U.S. states and parts of Argentina. Altogether, the operation accounts for roughly 1% of the world’s bitcoin mining, according to Crusoe, which was valued late last year at $2.8 billion. NYDIG is also privately held and valued at about $7 billion.
Lochmiller told CNBC that Crusoe started investing in AI infrastructure it its earliest days, and that the business increasingly became a central focus.
A Crusoe-operated bitcoin mining site in Roosevelt, Utah, powered by stranded natural gas.
Crusoe Energy/Andrew Schmitt
“We’d actually been building this AI business since the start of the company,” he said. “But over time that business has grown to be a really meaningful piece of our focus, our capital allocation and our growth.”
It’s an area with hefty investor interest because of soaring demand for AI processors, primarily from Nvidia. CoreWeave, which also got its start in crypto before pivoting to AI, is scheduled to hold its stock market debut this week and could be valued at well over $25 billion.
CoreWeave provides cloud-based Nvidia processors to companies including Meta and Microsoft, and reported revenue growth last year of more than 700% to $1.92 billion.
‘We have a big advantage’
Crusoe realized its bitcoin and AI businesses had fundamentally different requirements for things like uptime, scalability and energy sourcing.
From the prairie of Abilene, Texas, Crusoe plans to launch a hyperscale data center campus with 206 megawatts of capacity that’s expected to scale to 1.2 gigawatts by mid-2026. Crusoe says it could set a speed record for greenfield data center development. Construction began in June.
Crusoe is expanding its cloud platform to offer on-demand access to high-performance GPUs and is already running AI workloads in Iceland, entirely on geothermal and hydropower.
Read more about tech and crypto from CNBC Pro
“The AI business — it’s become the majority of our revenue,” Cavness, the company’s operating chief, told CNBC. “We see a huge opportunity in front of us, and we have a big advantage and a big head start with what we’ve already announced — and more coming soon.”
Crusoe’s early thesis was that compute should go where power is cheap and abundant, not where internet connections are best. That made it an industry outlier, but its approach caught the attention of big energy companies. It forged partnerships with Devon Energy, Equinor and Exxon Mobil.
NYDIG and Crusoe have worked together for years on flare gas projects and hosting each other’s equipment. Lochmiller first met NYDIG’s Josh Burandt, the company’s head of strategic investments, in person at the Bitcoin 2021 conference in Miami, which he described as “probably the greatest bitcoin conference that probably will ever happen.”
“The bitcoin mining industry is filled with a lot of colorful characters, some more trustworthy and credible than others,” Lochmiller said. “They always stood out to me as someone that I really wanted to be in business with,” due in part to the “highest degree of ethics” and “highest quality standards.”
Of NYDIG’s acquisition, Lochmiller said, “Ultimately, we decided our businesses were better together than separate.”
Chinese EV brand ZEEKR has announced a new design refresh to its flagship 001 EV model – the second in as many years. This latest upgrade to the 001 features ZEEKR’s 900V architecture, enabling better performance and some of the fastest charging speeds we’ve seen. The interior also appears quite cozy, allowing for a starry night setting on the panoramic roof.
If you know anything about the EV brand ZEEKR, you’ve probably heard of the 001 shooting brake EV. The flagship EV initially debuted in April 2021 and found early success in China before expanding its availability to new markets in Europe.
By 2023, the 001 has contributed to 64% of Zeekr’s annual global sales, including a high-performance quad motor variant called the 001 FR that was introduced in 2023. However, ZEEKR began selling a new model called the 007 in January 2024, which immediately overtook the 001 in popularity.
As a result, ZEEKR introduced a 001 refresh in February 2024, which offered customers new, lower-priced trims, plus improved performance. Even after the refresh, ZEEKR’s other models, like the 007 GT (which features newer tech at a lower price), continue to outsell the 001. So, ZEEKR has gone back to its design lab and introduced yet another 001 refresh for 2025, a much bigger overhaul.
Advertisement – scroll for more content
Source: ZEEKR/WeChat
ZEEKR 001 refresh will hit the market on October 11
Although most of China is currently on holiday to celebrate the Mid-Autumn Festival, ZEEKR’s marketing team was hard at work, sharing numerous images, videos, and performance specs of the new 001 refresh on social media channels like Weibo and WeChat.
According to the company, the 2025 001 refresh EVs are already making their way to ZEEKR showrooms around China before the official launch and start of deliveries on October 11. Those pre-order holders will be some of the first to experience the new 001 upgrades, which are centered around ZEEKR’s new E-Powertrain technology – a full-stack 900V architecture.
This is a significant upgrade from the 001’s previous 800V system. The result is significantly faster 12C charging, enabling 10-80% SOC in just seven minutes. Variants include an AWD version that offers 925 hp (680kW), accelerating from 0 to 100 km/h (0 to 62 mph) in 2.83 seconds to a top speed of 280 km/h (174 mph).
ZEEKR is also selling a RWD variant powered by CATL’s Qilin battery technology, offering notable (CLTC) range improvement of up to 810 km (503 miles). This version was equipped with a larger pack (113 kWh) compared to the 100 kWh in the 2024 model, which achieved a CLTC range of 750 km (466 miles).
Source: ZEEKR/Weibo
The 2025 ZEEKR 001 refresh also features plenty of upgrades to the interior. As showcased by the automaker in a video on Weibo, a new interior design theme called “Starry Sky Concert Hall” features premium textiles and an immersive display that can be activated across the EV’s interior roof. As you can see in the video here, stars and constellations twinkle amidst the glow of the moon, while shooting stars occasionally fly across the ceiling.
Other upgrades in the 001 refresh include a new chassis and “CCD Electromagnetic Damping System,” inclusion of ZEEKR’s G-AES (General Obstacle Avoidance) emergency active safety technology, which enables automatic avoidance at speeds up to 130 km/h (81 mph), and all-scenario tire blowout protection which can keep the shooting brake stable at speeds up to 120 km/h (75 mph) after a tire fails.
As mentioned above, the ZEEKR 001 refresh is expected to reach customers in China this weekend; however, there is no word yet on whether or when it will become available in other markets, such as Europe.
FTC: We use income earning auto affiliate links.More.
California is taking significant enforcement action against Tesla Insurance, alleging the company has been systematically failing to handle claims properly and harming its customers in the state. The California Department of Insurance announced the action, threatening to revoke Tesla’s license to operate in the state and impose significant fines.
This isn’t the first time we’ve seen Tesla’s insurance arm in hot water, but this action from a major market like California represents a serious escalation.
According to the press release, the California Department of Insurance has issued “Accusations” and “Notices of Orders to Show Cause” against Tesla Insurance Services, Inc., Tesla Insurance Company, and their partner, State National Insurance Company. The Department alleges that these companies have repeatedly failed to comply with California’s claims handling laws, leading to significant harm for policyholders – most of whom are Tesla drivers.
The Department of Insurance laid out some of the core allegations:
Advertisement – scroll for more content
Egregious delays in responding to policyholder claims in all steps of the claims handling process, causing financial harm, out-of-pocket expenses, potential third-party liability exposure, and distress to policyholders.
Unreasonable denials and delays in fully paying valid claims to consumers. Failure to conduct thorough, fair, and objective investigations of claims, thus denying consumers the insurance benefits they expect.
Failure to advise policyholders of their rights to have their claims denials reviewed by the Department – a major consumer protection in California to make sure insurers are held accountable by their regulator.
The state claims that despite numerous warnings and meetings where Tesla and its partners promised to improve, “the number of justified consumer complaints and violations continued to mount.”
The companies now face potential penalties of up to $5,000 for each unlawful, unfair, or deceptive act, or up to $10,000 for each act determined to be willful. Given the Department alleges “hundreds” of mishandled claims, the fines could quickly add up into the millions.
The companies have 15 days to respond to the allegations. If the issues are not resolved, the case will go before an administrative law judge to determine if Tesla can continue to sell insurance in California.
Electrek’s Take
That does sound like Tesla, especially the part where they are ignoring the notices.
This might be more important than it sounds, as insurance is critical to Tesla’s future, particularly if it is to be an autonomous one.
Tesla first started its insurance arm to lower cost to customers and “better account for how its autonomous driver assistance features improve safety.”
However, ultimately, Tesla drivers would find it hard to insure vehicles with level 3-5 autonomous driving technology, and Tesla planned to offer those services whenever it actually achieves these levels of autonomy.
Based on these statements by the California Department of Insurance, it doesn’t sound like Tesla is ready to take on that responsibility.
FTC: We use income earning auto affiliate links.More.
Due to Tesla still referring to them as “new, more affordable models”, many people believed that Tesla would still bring to market new, cheaper models.
In fact, the automaker initially stated that it would arrive in the “first half of 2025.”
The new stripped-down Model Y is codenamed E41 and is expected to feature cheaper materials and fewer features than the normal Model Y, which starts at $45,000 in the US.
It is expected to be equipped with more affordable materials, such as a textile interior, and to lose the Model Y’s glass roof, as well as features like the rear screen and more.
Electrek’s Take
The problem with this program is that, rather than launching a brand-new model, it will mostly cannibalize Tesla’s existing Model Y sales.
At best, it will boost Model Y demand by ~10-15% when Tesla’s production capacity is operating at ~60%.
And to achieve that, I think the variant needs to be closer to $35,000 than the $40,000 we have seen in leaks earlier.
If that’s the case, I think it will do the same thing at the Cybertruck RWD that only lasted a few months because people felt they lost too many features for the $10,000 price difference.
FTC: We use income earning auto affiliate links.More.