Good morning, Peter Vanham here in Geneva.
With all the hype about generative A.I., you might have forgetten about “classical A.I.,” which uses big data and “machine learning” algorithms to optimize business processes or create new ones.
It’s the kind of A.I. Amazon used to dominate e-commerce and logistics, or what Google or Meta used to keep us scrolling and clicking on recommendations we wouldn’t have read otherwise.
But this classical A.I. could aid “small town America” too, by helping it embrace and benefit from the green transition, Arcady Sosinov, founder and CEO of FreeWire, says.
FreeWire, which is backed by BlackRock and BP, sells EV charging stations and batteries. It also provides its clients—mostly franchisees of fuel retailers such as Chevron and Phillips 66—with an A.I. data platform that tells them how to optimize returns on the electricity they sell or the foot traffic that comes into their stores. Here’s Sosinov, in an interview I conducted with him yesterday:
“I’m landing customers that no one else could have landed because I can show them actionable and cash flows forecasts. They’re these franchisee owners that have 15 gas stations. They’re not even sold on climate change. But if you can show them the positive cashflow [of investing in EV chargers], they’re going to go for it every single day.”
These American heartland fuel retailers, Sosinov added, are “most of the U.S.,” and it’s a market that has been largely overlooked by other providers. “It’s not New York or San Francisco. It’s small town America that has small gas stations where people go to buy a pack of cigarettes or Coca-Cola and bring [it] home to their family. How do you tap into that, with the messaging that’s been happening in the industry so far? That doesn’t work.”
More broadly, optimizing energy use and conversion loss through A.I. is one of America’s largest business opportunities going forward, Sosinov says. “The best estimate [I know of] is that 70% of all electricity produced is lost. Our addressable market is that 70%,” he says. And the A.I. used to optimize that market is “not the large language tools, but the real actionable systems that allow a very hard part of our economy to become much more intelligent.”
More news below.
Peter Vanham
peter.vanham@fortune.com
@petervanham
TOP NEWS
X-ing out headlines
X, the social media platform once known as Twitter, plans to strip headlines and article descriptions from links shared on the platform, according to material seen by Fortune. X owner Elon Musk believes the change will curb clickbait, as well as cram more posts on-screen. Advertisers are less enthusiastic, but “it’s something Elon wants,” one source says. Musk later confirmed the change is "coming from me directly," saying it "will greatly improve the esthetics." Fortune
How do you hire a CEO?
Boards are spending up to half a million dollars in their quest to find CEOs for companies. Among the candidate tests on offer: running roleplay sessions with prospective CEOs in which actors simulate different situations, like board members that disagree on strategy or an activist investor pushing for an unethical change. Few prospective CEOs flunk the test, but it helps a board understand how a candidate communicates under stress. Fortune
Arm’s IPO
Arm, the chip firm whose designs are used in just about every smartphone, has finally filed for its long-awaited IPO. The SoftBank-backed firm is expected to seek a valuation of between $60 billion and $70 billion in what will be the largest debut in the U.S. this year. In its filing, Arm revealed that its revenue fell by 1% over the past fiscal year amid a sales slump for consumer electronics and chips. Bloomberg
AROUND THE WATERCOOLER
The CFO at one of the largest law firms in the U.S. shares his philosophy for thriving as a self-described introvert: ‘I do not do work dinners’ by Sheryl Estrada
Saturday is the new Friday in the 6-day workweek for hybrid workers. They’re relaxing more during the week, but paying for it on the weekend by Chloe Berger
Step aside, LinkedIn: Grindr CEO says he has hired workers through the dating app, as the company pitches itself as the new networking platform in town by Orianna Rosa Royle
Why the ‘navel-gazing’ marketing industry has fallen for the trap of targeting 29-year-olds—and older ‘perennials’ are the key to booming sales by Mauro F. Guillen
Mark Zuckerberg’s new ‘in-person time policy’ will crack down on Meta’s remote work rebels by Chloe Taylor
This edition of CEO Daily was curated by Nicholas Gordon.
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