Quaise Energy announced the first close of a $134 million Series B on July 7, led by Prelude Ventures with strategic participation from Japanese energy majors JERA and Idemitsu. The Houston- and California-based startup is developing drilling technology that uses ultra-high-frequency millimeter waves to bore up to 15 kilometers into the Earth's crust.
That depth matters because it's deep enough to reach superhot geothermal reservoirs above 400°C -- hot enough to run a conventional power plant -- almost anywhere on the planet, not just in the geologically fortunate regions (like Iceland or parts of the western US) where conventional geothermal already works. Millimeter-wave drilling is designed to cut through hard rock far faster and deeper than mechanical drill bits, the core technical bet the company has been derisking since its MIT spinout origins.
“For infrastructure-focused GPs, the read is that "power for AI" is now investable well beyond just building more gas turbines or solar farms.”
The strategic backing from JERA and Idemitsu -- two of Japan's largest energy importers -- signals interest from utilities looking to diversify away from imported fossil fuels toward a domestically drillable baseload source, a dynamic playing out in parallel with Japan's broader push into next-generation nuclear and hydrogen.
Quaise's raise landed the same week as Proxima Fusion's €411 million fusion round, and together they're the clearest signal yet that venture and strategic capital are treating next-generation baseload power as its own hot category in 2026, driven directly by AI data centers' voracious and inflexible power appetite. For infrastructure-focused GPs, the read is that "power for AI" is now investable well beyond just building more gas turbines or solar farms.