In 2025, Artificial Intelligence (AI) is transforming industries at an unprecedented pace, but with great progress comes significant environmental costs. As AI models grow more powerful, their appetite for energy escalates, leaving a hefty carbon footprint in the process. Alarmingly, a single large AI model can emit over 626,000 pounds of CO2, equivalent to the lifetime emissions of five cars! However, a new wave of startups is tackling this issue head-on, innovating solutions to make AI greener, smarter, and more sustainable.
Here, we’ll explore 7 startups making AI sustainable, highlighted by investors as 2025’s most promising ventures. Get ready to uncover their revolutionary work, practical tips for reducing AI’s energy demands, and a special tool to help you launch your green AI startup faster!
Why a Greener AI Matters
The energy consumption of AI data centers is set to double by 2026 to reach 1,000 TWh, approximately the combined electricity usage of Japan. As AI becomes a critical pillar for numerous industries, addressing its environmental impact is no longer optional but essential.
From sustainable infrastructure to smarter cooling systems, the startups on our list exemplify how AI can be aligned with our planet's needs while driving innovation.
7 Green AI Startups Backed by Investors
1. PlayPal – Your AI Co-founder and Virtual Friend
PlayPal is a groundbreaking AI companion designed to help both individuals and startups succeed. Developed by Violetta Bonenkamp, the game-changing founder of Fe/male Switch, PlayPal acts as a virtual co-founder, taking care of tasks like brainstorming, creating SOPs for startup operations, and validating ideas. Its eco-conscious design ensures that it consumes minimal energy while powering impactful solutions.
Why It Matters: By equipping entrepreneurs with tools to navigate complex startup processes efficiently, PlayPal significantly reduces the resource-intensive trial-and-error phase often tied to startup failures. Plus, it’s free to use for entrepreneurs around the world.
➡️ Ready to chat with an AI co-founder? Learn more about PlayPal.
2. Nexos.ai – Smarter AI Model Orchestration
Based in Lithuania, this startup optimizes energy usage by intelligently routing computational tasks across multiple AI models. By ensuring that only suitable AI workloads are processed, Nexos.ai reduces unnecessary energy consumption while scaling efficiency for its clients.
Investor Insight: Nexos.ai’s orchestration leverages AI energy efficiency to become a strong player in the fight against excessive energy use in data centers.
3. Flower – AI Aligned with Clean Energy
Sweden’s Flower startup connects AI workloads with renewable energy sources like solar and wind. Its grid-scale battery technology, combined with forecasting algorithms, ensures AI systems use sustainable power with better predictability.
Why It Matters: By matching AI energy demand with clean power sources, Flower significantly reduces reliance on fossil fuels.
4. Deepgate – Hardware-Embedded AI Systems
Founded in the UK, Deepgate disrupts traditional AI hardware by embedding intelligence directly into microchips. This drastically cuts the energy required to power AI applications while ensuring faster, more efficient computations.
Investor Insight: Hardware-level innovation like Deepgate’s tech could cut AI energy consumption by more than 50%.
5. Literal Labs – Explainable & Low-Power AI
Literal Labs focuses on crafting ultra-efficient AI models leveraging logic-based methods. These systems are smaller in size, use less power, and provide explainable outputs, bridging the gap between sustainability and transparency.
Why It Matters: Efficient AI isn’t just green; it’s easier to understand and build trust with stakeholders.
6. Nexalus – Sustainable Cooling with Heat Reuse
This Irish startup pioneers liquid cooling technology to reduce the energy consumption of AI-driven data centers. Nexalus doesn’t stop there, it repurposes the excess heat generated into secondary applications, further enhancing efficiency.
Why It Matters: Cool technology, literally! Cooling systems for AI currently represent 35% of data center energy consumption, making Nexalus a game-changer.
7. Terralayr – Virtual Energy Infrastructure for AI
Headquartered in Switzerland, Terralayr virtualizes renewable battery assets, enabling AI systems to run on more stable and scalable green power. Its approach ensures seamless AI energy operations, even during renewable intermittencies.
Investor Insight: Investors believe Terralayr bridges the gap between AI’s rising scalability needs and the limitations of today’s renewable energy infrastructure.
Bonus Resource 💡
Get Funding for Your Green AI Startup
Struggling to find a grant or draft funding applications? Try the F/MS AI Grant Finder and Application Writer.
This AI-powered platform connects entrepreneurs with EU funding opportunities tailored to their unique needs. Instead of agonizing over complex applications, the tool drafts them for you in minutes! A must-have for any founder in the EU, particularly in climate tech.
Practical Tips for Launching a Sustainable AI Startup
1. Start Small
Don’t aim for complex AI models immediately. Focus on solving specific problems where energy savings are measurable.
2. Utilize Green Hosting
Host your data on renewable-powered data centers like Google Carbon-Free Cloud.
3. Partner with Ecosystem Players
Join accelerators and programs focused on green tech. Explore nation-specific initiatives like Malta’s startup visa program or tech hubs like the Netherlands (learn more via this interview on Malta startups).
4. Reduce Model Size
Implement pruning or compression techniques in AI model training to lighten computational demands.
Common Mistakes to Avoid
- Overlooking Hardware Efficiency: Many entrepreneurs focus only on software optimization, ignoring that hardware innovations can yield greater energy savings.
- Ignoring User Transparency: Investors and customers increasingly demand “explainable” AI. Avoid developing black-box solutions that lack transparency and trust.
- Underestimating Data Consumption: Storing or processing vast amounts of data unnecessarily can balloon energy consumption. Process only what's essential.
Conclusion: Green AI, the Way Forward
From hardware-level innovations by Deepgate to intelligent orchestration by Nexos.ai, 2025 proves to be a transformative year for making AI green and efficient. The rise of startups focused on sustainable AI development showcases that it’s possible to balance technological progress with environmental responsibility.
Are you considering building a green AI startup? Don’t do it alone. Tools like PlayPal and the F/MS AI Grant Finder are here to guide and support you in this exciting journey toward sustainability and innovation.
The future of sustainable tech starts today! Will you be a part of it? 🚀
FAQ
1. What is PlayPal and how does it help startups go greener?
PlayPal is an AI tool acting as a virtual co-founder, helping startups streamline operations, reduce trial-and-error, and minimize resources. Its energy-efficient design aligns with sustainability goals. Learn more about PlayPal
2. How does Nexos.ai optimize AI energy consumption?
Nexos.ai intelligently routes computational tasks across AI models, reducing unnecessary energy usage and scaling efficiency for clients. Explore Nexos.ai
3. What role does Flower play in connecting AI workloads with clean energy?
Flower integrates AI systems with renewable energy sources like solar and wind, using grid-scale batteries and forecasting for better sustainability. Learn more about Flower
4. What is unique about Deepgate’s hardware-embedded AI systems?
Deepgate embeds intelligence directly into microchips, drastically reducing the energy needed for AI computations while increasing efficiency. Explore Deepgate
5. How does Literal Labs make AI models more sustainable?
Literal Labs uses logic-based methods to create ultra-efficient, smaller AI models that consume less power and deliver explainable outputs. Discover Literal Labs
6. How does Nexalus contribute to sustainable cooling for AI operations?
Nexalus develops liquid cooling technologies that reduce energy consumption in data centers while reusing heat for secondary applications. Discover Nexalus
7. What makes Terralayr’s approach to virtual energy infrastructure innovative?
Terralayr virtualizes renewable battery assets, ensuring AI systems operate on stable, scalable green power, even during intermittent clean energy availability. Visit Terralayr
8. Why is hardware efficiency critical for greener AI?
Hardware innovations, like those from Deepgate and Enlightra, reduce AI energy consumption by embedding intelligence directly into devices or leveraging optical technologies to improve performance. Explore Deepgate
9. What are practical tips for launching a sustainable AI startup?
Start small by building simpler AI models, use green hosting solutions, and partner with accelerators focused on green tech to minimize your carbon footprint. Check out Malta startup initiatives
10. How can founders find funding for green AI projects?
Entrepreneurs can leverage AI-powered tools like the F/MS AI Grant Finder to locate EU funding opportunities and draft funding applications tailored to their needs. Discover the F/MS AI Grant Finder
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch. The Fe/male Switch team is located in several countries, including the Netherlands and Malta.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 3,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
