Family office investment activity dipped in May, but select high-conviction bets still emerged—especially in sectors aligned with the growing demands of artificial intelligence and clean energy.
One of the month’s standout moves came from Barry Sternlicht, the billionaire founder of Starwood Capital. His family office, Jaws Ventures, joined a $50 million funding round for Zeno Power, a startup producing compact nuclear batteries powered by radioactive waste. These devices are built for remote, extreme environments—from the ocean floor to outer space—and already count NASA and the U.S. Department of Defense among their clients.
According to Fintrx data shared with CNBC, family offices made just 41 direct investments in May—a nearly 50% drop compared to the same period last year—amid ongoing macro uncertainty. Yet interest in nuclear energy is surging as AI’s power demands escalate. A UBS survey from 2024 found that nearly 80% of family offices were planning AI investments within two to three years.
Sternlicht isn’t alone in the nuclear bet. Earlier this year, X-Energy, a nuclear reactor startup, secured backing from a trio of high-profile investors: Ken Griffin, Laurene Powell Jobs’ Emerson Collective, and Pitt Hyde’s Pittco.
Big tech is also getting on board. Meta, the parent company of Facebook, recently inked a 20-year deal with Constellation Energy to source nuclear power—a move that could signal broader institutional demand for clean, reliable energy at scale. Jed Dorsheimer of William Blair told CNBC this could mark the start of a wave: “We’ve sidelined the most energy-dense technology for too long.”
That shift may accelerate after Donald Trump’s late-May executive order, which calls for faster deployment of nuclear reactors and reform of the Nuclear Regulatory Commission.
Beyond energy, family offices are backing foundational technologies for AI infrastructure. Bezos Expeditions joined a $155 million seed round for Atlas Data Storage, a spinout from Twist Bioscience. Atlas aims to reduce data storage costs using a novel, DNA-based format. The deal also included Tao Capital, the investment firm of Joby Pritzker.
Despite an overall cooldown, the family office deal landscape is shifting toward long-term plays that support AI’s infrastructure—both in terms of energy and data.
