Tem raises $75M to remake electricity markets using AI

London-based startup Tem has raised $75 million in an oversubscribed Series B funding round led by Lightspeed Venture Partners, valuing the company at over $300 million. Tem uses AI-driven technology to create an energy transaction engine called Rosso, which matches electricity generators—primarily renewable energy producers—with business consumers. By leveraging machine learning and large language models to predict supply and demand, Tem aims to reduce energy costs by cutting out multiple intermediaries in traditional energy markets, thereby bringing prices closer to wholesale rates. The company currently serves over 2,600 UK businesses, including Boohoo Group, Fever-Tree, and Newcastle United FC, promising up to 30% savings on energy bills. Tem operates two main businesses: Rosso, the AI-powered transaction platform, and RED, a "neo-utility" that uses Rosso’s infrastructure to demonstrate its value. While Tem initially attempted to license Rosso to other utilities, it now prioritizes growing RED, which is currently the sole utility