Axiom Solutions International

AI Infrastructure · Power Infrastructure · Data Centers

Funding

Flex spinout Axiom lands $2B at $37.5B valuation for AI power infrastructure

The new valuation tops former parent Flex's entire market value, showing investors now price electricity and cooling above the chips they power.

• Axiom Solutions International, a cloud-and-power infrastructure business spun out of contract manufacturer Flex, landed a $2 billion strategic investment from General Catalyst and Koch Equity Development at an initial enterprise value of $37.5 billion.
• Austin-based Axiom builds the power conversion, electrical infrastructure, thermal management and rack-level integration that data centers need to run AI workloads, and plans to split off from Flex as an independent public company in early 2027.
• The capital is structured as convertible preferred shares purchased from Flex and will help fund Axiom's pending $4.4 billion acquisition of EPC Power, pushing the company upstream into megawatt-scale power conversion and 800-volt DC systems.
• At $37.5 billion, Axiom's initial valuation runs nearly double Flex's own roughly $19 billion enterprise value, even though the unit was folded into Flex's legacy telecom-hardware segment until a September filing broke it out.
• The round was the single biggest U.S. startup financing tracked from October 3-9, 2026, ahead of TypeSafe AI's $870 million raise and Oratomic's $475 million quantum computing round.
• The size and speed of this check shows venture and strategic capital increasingly chasing the physical scaffolding of AI -- power and cooling -- rather than model-layer software alone.