What Karman Industries does

Karman Industries is a Los Angeles-based thermal technology company founded in July 2024 by aerospace engineers David Tearse (CEO) and CJ Kalra (CTO), both formerly of SpaceX. The company develops CO2-based heat processing systems targeting two end markets: AI data center cooling via its flagship Heat Processing Unit (HPU) and industrial process heating via its Thermal01 electric heat pump. Its core product, the HPU, is a modular 10MW thermal management platform designed for hyperscale AI data centers and giga-scale AI factories where it addresses escalating GPU thermal loads, water scarcity, and the sprawling mechanical infrastructure required by conventional cooling systems.

The HPU is built around the proprietary KOMPRESSOR, which integrates aerospace-derived high-speed turbomachinery, 800V DC silicon-carbide power electronics adapted from electric vehicles, and metal 3D-printed impellers and stator vanes into a compact system using supercritical CO2 as the working fluid. The company reports performance advantages of more than 25% reduction in cooling energy consumption, 60-80% reduction in mechanical yard footprint, zero water consumption, and Power Usage Effectiveness as low as 1.01 when configured for heat reuse in power generation. A single 10MW unit fits inside one shipping container, with claimed 90% reductions in mechanical systems, units requiring commissioning, and infrastructure hookups relative to traditional chillers and dry coolers. The product roadmap targets an initial 1GW annual production capacity at the GigaWerx facility in Los Angeles starting Q3 2026, scaling to 4GW+ across additional factories planned for 2028.

Karman operates an enterprise direct-sales model targeting AI data center hyperscalers and large industrial manufacturers globally. Revenue is generated primarily through HPU hardware sales, supplemented by professional services covering installation, commissioning, and maintenance delivered through partners such as Manufacturo. Pricing is not publicly disclosed; the company uses a website-based capacity reservation system to capture prospective buyer interest. As of the latest available data, the company had raised over $30 million across a $4M pre-seed (September 2024), a $7.5M round (January 2025), and a $20M Series A (September 2025) led by Riot Ventures, with first commercial deliveries planned from Q3 2026.

Name

Karman Industries

Legal name

Karman Industries, Inc.

Website

https://karmanindustries.com

Company type

Private

Founded year

2024

Operating status

Operating

Headcount range

1–10 employees

Short description

Karman Industries is a Los Angeles-based thermal technology company, founded in 2024, that builds CO2-based modular 10MW Heat Processing Units for AI data center cooling and industrial process heating, targeting hyperscalers and global manufacturers with deliveries starting Q3 2026.

Ownership category

akta.pro rank

Product category

Data Center Cooling Hardware

NAICS

Power Boiler and Heat Exchanger Manufacturing (33241), Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing (3334), Heating Equipment (except Warm Air Furnaces) Manufacturing (333414)

SIC

Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip (3585), Heating Equipment, Except Electric & Warm Air Furnaces (3433)

akta.pro primary industry

HPC Cooling, Power & Infrastructure (Liquid Cooling, Racks, Power Delivery) (HDACAOAI)

akta.pro secondary industries

AI Datacenter Power, Cooling & Racks (liquid cooling, power delivery) (HDAAAAAH), Heat Exchangers & Thermal Transfer Equipment (IMAHAKAC), Heat Pump & Smart HVAC Controller Integration (HSAOANAD)

Keywords

• Data center cooling
• Industrial heat pumps
• Thermal management systems
• CO2 refrigeration
• Electric thermal processing

Headquarters

HQ city

Los Angeles

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. HPU Hardware Sales: Sale of Heat Processing Unit (HPU) systems as modular 10MW thermal management units to AI data center operators and industrial manufacturers. The company manufactures at its GigaWerx facility in Los Angeles, with initial deliveries planned from Q3 2026 and a roadmap to 4GW+ annual production capacity.
2. Professional Services (Installation & Commissioning): Services supporting installation, commissioning, and ongoing maintenance of HPU systems. Manufacturo partnership provides data-driven manufacturing execution and quality traceability for reliable build and deployment.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Karman Industries designs, manufactures, and sells the Heat Processing Unit (HPU), a modular 10MW CO2-based thermal management platform that cools AI data center GPU clusters while enabling heat reuse for power generation, additional cooling loops, or district heating. The company also sells the Thermal01 high-performance electric heat pump for industrial manufacturers replacing natural gas boilers, with both products powered by the proprietary KOMPRESSOR technology. Systems are produced at the GigaWerx manufacturing facility in Los Angeles with initial deliveries planned from Q3 2026.

Product overview

Karman Industries offers a portfolio of advanced thermal management solutions centered on two core products: the Heat Processing Unit (HPU) for data center cooling and the Thermal01 heat pump for industrial applications. Both products leverage the proprietary Karman Kompressor technology, which applies aerospace-derived turbomachinery, rocket engineering, and electric vehicle innovations to deliver high-efficiency thermal management. The HPU is a modular 10MW platform targeting AI data centers, while the Thermal01 targets industrial manufacturers seeking to replace gas boilers with electric heating systems.

Differentiator

Problem solved

Functional benefit

Products and services

• Heat Processing Unit (HPU) A modular 10MW integrated thermal platform that uses CO2-based compression refrigeration and the proprietary KOMPRESSOR to cool high-power-density AI GPU clusters. It eliminates water consumption for cooling, reduces energy use by 25%+, and shrinks mechanical yard footprint by 60-80% while enabling heat reuse for additional cooling, power generation, or district heating. Designed for AI data center hyperscalers and giga-scale AI factories.
• Thermal01 Heat Pump A high-performance electric heat pump that leverages advanced turbomachinery and electronics technology to replace natural gas boilers in industrial settings. Targets global manufacturers in food & beverage, paper & pulp, materials & minerals, and chemicals to reduce energy costs and eliminate onsite scope 1 emissions.
• HPU Installation, Commissioning & Manufacturing Support Services Professional services supporting installation, commissioning, and ongoing maintenance of HPU systems, enabled by the Manufacturo partnership to provide data-driven manufacturing execution and quality traceability for reliable build and deployment.

Quantifiable outcome

• Reduces energy consumption by more than 25%
• +5 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Two partnerships are on record, tiered core and secondary.

• ManufacturocoreImplementation/ SI/ Consulting Partner · 17 February 2026Manufacturo, a next-generation manufacturing software platform for high-complexity production, partnered with Karman Industries to enhance manufacturing processes for the HPU. The collaboration provides a controlled, data-driven environment to support reliable build execution and quality traceability, with initial deliveries expected in Q3 2026 from Los Angeles.
• Prime Data CenterssecondaryStrategic or Co-development PartnerPrime Data Centers is collaborating with Karman Industries and Nvidia to develop and deploy innovations addressing data center cooling challenges. The three-way collaboration focuses on reducing energy consumption and physical footprint in data center operations.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• ZutaCore: Direct competitor offering liquid cooling solutions for AI and high-performance data centers, targeting similar hyperscaler customers with technology aimed at reducing data center cooling energy and footprint.
• CoolIT Systems: Direct competitor in direct liquid-to-chip (DLC) cooling for AI/ML data centers, supplying cold plates, manifolds, and CDU systems to hyperscalers and enterprise data centers — a similar product/customer profile to Karman's HPU.
• Asperitas: Direct competitor providing immersion cooling solutions for high-density data centers, addressing similar hyperscaler pain points around energy and water consumption in AI workloads.
• Iceotope Technologies: Direct competitor in precision liquid cooling for data centers and edge compute, with a similar focus on reducing cooling energy and footprint for high-density AI and HPC workloads.
• LiquidCool Solutions: Direct competitor offering single-phase liquid cooling for high-performance data centers, with similar focus on AI workloads and hyperscaler customers.
• Green Revolution Cooling (GRC): Direct competitor in immersion cooling for data centers, targeting AI/HPC customers seeking higher density and lower energy/water consumption — directly comparable to Karman's HPU value proposition.

Broad incumbents

• Vertiv: Broad incumbent in data center critical infrastructure (cooling, power, IT management). Vertiv offers liquid cooling and thermal management products across the full data center stack and competes for the same hyperscaler cooling budgets as Karman.
• Schneider Electric: Broad incumbent in data center infrastructure, including cooling solutions for AI factories. Schneider's broader portfolio competes head-to-head with Karman on hyperscaler and colocation procurement.

Emerging players

• Rondo Energy: Emerging player in industrial heat technology, focused on electrifying industrial process heat for manufacturers. Comparable to Karman's Thermal01 product line for industrial decarbonization applications.
• Electrified Thermal Solutions (ETS): Emerging player developing electric industrial heat solutions (Joule Hive thermal battery) for replacing fossil-fuel-fired industrial heat — comparable to Karman's Thermal01 industrial heat pump for Scope 1 emissions reduction.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds4 records

Investors6 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Karman Industries