The capital infusion arrives as Flex prepares to accelerate its expansion into AI-driven power and cooling technologies. Revathi Advaithi, who serves as CEO of Flex and is slated to lead Axiom, noted that the funding will support the company’s acquisition of EPC Power while providing the necessary balance sheet strength for its transition to an independent firm. The move signals a broader effort to capitalize on the surging demand for specialized infrastructure required by modern data centers.
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Flex Secures $2 Billion Investment for AI Infrastructure Spin-off
Flex is carving out its cloud and power infrastructure segment, Axiom, into an independent public company following a $2 billion convertible preferred equity investment. The deal, backed by General Catalyst and Koch Equity Development, values the emerging entity at $37.5 billion ahead of its planned 2027 market debut.
Hemant Taneja, CEO of General Catalyst, highlighted the strategic importance of the investment, citing Axiom’s central role in the infrastructure buildout required for AI diffusion. Under the terms of the agreement, General Catalyst will gain a seat on Axiom's board upon the completion of the separation. The convertible preferred stock carries a 10% annual dividend, which is set to adjust following the spin-off, currently targeted for the first quarter of 2027.
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