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This chatbot can prescribe psych meds. Kind of.

This chatbot can prescribe psych meds. Kind of.

Utah is allowing an AI system to prescribe psychiatric drugs without a doctor. It’s only the second time the state — and the country — has delegated this kind of clinical authority to AI. State officials say it could bring costs down and ease care shortages, but physicians warn the system is opaque, risky, and unlikely to expand mental health care to those who need it.

The one-year pilot, announced last week, will allow Legion Health’s AI chatbot to renew certain prescriptions for psychiatric medications, in some cases. The San Francisco startup promises Utah-based patients “fast, simple refills” through a $19-a-month subscription. The program starts at some point in April, though the company is only operating a waitlist at the moment.

The AI chatbot will renew certain prescriptions for psychiatric medications, in some cases.

The program is deliberately narrow in scope, limited both in terms of the medications it covers and the conditions patients must meet to qualify. According to Legion’s agreement with Utah’s Office of Artificial Intelligence Policy, the chatbot can renew only 15 lower-risk maintenance medications that have already been prescribed by a clinician. That includes fluoxetine (Prozac), sertraline (Zoloft), bupropion (Wellbutrin), mirtazapine, and hydroxyzine, commonly used to treat anxiety and depression. Patients must also be considered stable: Anyone with a recent dose or medication change or a psychiatric hospitalization in the last year is excluded, and patients must check in with a healthcare provider every 10 refills or after six months, whichever comes first.

The system cannot issue new prescriptions or handle medications that require closer clinical oversight, including drugs that need blood-test monitoring. Controlled substances are also barred, ruling out many ADHD medications. The exclusion of benzodiazepines, used for anxiety; antipsychotics, used for conditions like schizophrenia and bipolar disorder; and lithium — widely considered the gold-standard treatment for bipolar disorder — leaves many more complex psychiatric cases outside the pilot’s scope.

To use the system, patients must opt-in, verify their identity, and prove they already have a prescription, such as by providing a photo of the label or pill bottle. They are then asked about their symptoms, as well as side effects and efficacy of the medication. They’re asked questions about suicidal thoughts, self-harm, severe reactions, and pregnancy in order to log red flags. If any answers fall outside of the pilot’s low-risk criteria, the cases are supposed to be escalated to a clinician before any refill is issued. Patients and pharmacists can also request human review.

“By safely automating the renewal process for maintenance medications, we are allowing patients to get the care they need much more quickly and affordably,” state officials said when announcing the pilot. Over time, they said, the program could free healthcare providers to “focus their time on more complex, higher-risk patient needs” and help address shortages that have left 500,000 Utah residents without access to mental health care. Legion cofounder and CEO Yash Patel has cast the program in even grander terms, describing it as a global first that will dramatically expand access to healthcare and mark “the beginning of something much bigger than refills.”

Psychiatrists are less convinced. Brent Kious, a psychiatrist and professor at the University of Utah School of Medicine, told The Verge he thinks the “advantages of an AI-based refill system may be overstated.” He suspects the tool “will not increase access for those who are most in need of care.” The target patient would already have to be on a treatment plan with their psychiatrist to use the service.

“It would be better if there were greater transparency, more science, and more rigorous testing before people are asked to use this.”

Kious suggests the automation could contribute to what he called an “epidemic of over-treatment” in psychiatry, with some patients staying on medication longer than they need to. John Torous, director of digital psychiatry at Beth Israel Deaconess Medical Center and professor of psychiatry at Harvard Medical School, raised a related concern, noting that some people benefit from staying on psychiatric medications long-term, while others may benefit from reducing or stopping them. “They require more active management, changes, and careful consideration,” he said. That’s harder to do if you’re outsourcing refill check-ins to a chatbot.

A bigger worry is whether a chatbot can safely automate even the most routine parts of psychiatric care. Torous said prescribing involves more than just checking for drug interactions, and questioned whether any AI system today “can understand the unique context and factors that go into a person’s medication plan.” Kious made a similar point: “This is something that could be safe in principle, but it all depends on the details.” Those concerns are compounded by how new these systems are — and how opaque they remain to outsiders. “It feels a bit like alchemy right now,” he said. “It would be better if there were greater transparency, more science, and more rigorous testing before people are asked to use this.”

There are more immediate safety concerns, too. Kious said the chatbot could miss something during screening: It may not ask the right questions, a patient may not recognize a side effect, or they may answer inaccurately. Some may simply tell the system what it wants to hear in order to speed up care. He stressed that this is not unique to chatbots; much of psychiatry relies on self-report. But human clinicians usually have access to other information as well, he said, adding that when he sees patients, he pays attention not just to what they say, but also to what they do not say and how they present themselves. And while patients can also mislead human providers, Kious said a chatbot system may make it easier for patients to adjust their answers until they produce the desired outcome.

Torous said there are more overt safety risks as well, which will be familiar to anyone following how chatbots fare in the real world. Legion’s chatbot is Utah’s second experiment with AI prescribing, joining an ongoing, broader pilot focused on primary care with Doctronic that launched last December. Within weeks of going live, security researchers had managed to push Doctronic’s system into spreading vaccine conspiracy theories, generating instructions for cooking meth, and tripling a patient’s opioid dosage. State officials say the more focused program with Legion is designed specifically to target “the state’s mental health shortage.”

Legion says the pilot is operating under tight guardrails. In addition to what it calls “conservative eligibility gates,” its agreement with Utah requires it to provide detailed monthly reports and have the first 1,250 requests closely reviewed by human physicians, with periodic sampling of around 5 to 10 percent of requests thereafter.

Legion cofounder and president Arthur MacWaters told The Verge that “risks exist in any remote care model, whether AI-assisted or fully human-led” and stressed the company’s “workflow does not rely on a single self-reported answer to unlock treatment.” He said key safeguards include the pilot’s narrow limits on medications and patient eligibility, built-in AI safety screens, pharmacist involvement, and the ability to escalate to a clinician. “We see this as critical to expand access to hundreds of thousands of people in Utah who live in mental health shortage areas, as well as an important proving ground for AI in medicine.”

MacWaters would not comment on additional use cases, medications, or expansions to other states, but said the firm is “excited for what the future holds.” He would not offer a timeline on Legion’s expansion plans either, though both MacWaters and Legion have signalled broader ambitions beyond Utah publicly: Legion’s refill site says the service will be available “nationwide 2026” and MacWaters has suggested it “will be in every state very very quickly.”

For the psychiatrists I spoke to, it all seems to raise a rather basic question: What problem is Legion really solving? Established patients often don’t even need an appointment to get a refill, Kious said, explaining that most psychiatrists are probably “happy to refill prescriptions for free and without an appointment” unless they are worried about the patient or the medication carries a meaningful risk. Those are the very cases Legion’s AI is barred from handling.

“I would personally avoid it for now,” Torous said, adding that if you’ve found a good treatment plan that works for you, it’s probably best to stick with that clinician.

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For months, rumors have swirled that SpaceX was preparing a historic market debut, with whispers of a $1.75 trillion valuation and a record-shattering $75 billion raise. Now that the paperwork is public, we finally have our first real look at the financials behind the company that normalized reusable rockets, built a space internet monopoly, and absorbed Musk’s xAI and the dredges of Twitter into its orbit.

Several of our anticipated market opportunities, including certain AI, orbital, lunar, and interplanetary transportation and industrial activities, are still emerging and evolving or do not currently exist, and such markets may not develop as we expect, or at all.

It also says its “substantial level of indebtedness could materially adversely affect our financial condition.”

According to the WSJ, Musk’s supervoting shares will give him 85 percent control over the company. In addition to Musk, SpaceX president Gwynne Shotwell, and CFO Bret Johnson, the SEC filing lists several other members of SpaceX’s board of directors, including Google executive Donald Harrison, Tesla board member Ira Ehrenpreis, as well as investors Randy Glein, Antonio Gracias, Steve Jurvetson, and Luke Nosek.

SpaceX describes its mission to investors as:

Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars. To do this, we have formed the most ambitious, vertically integrated innovation engine on (and off) Earth with unmatched capabilities to rapidly manufacture and launch space-based communications that connect the world, to harness the Sun to power a truth-seeking artificial intelligence that advances scientific discovery, and ultimately to build a base on the Moon and cities on other planets.

SpaceX currently leads the industry in commercial space launches, with its massive Starship V3 rocket scheduled for flight on Thursday following a delay. The document repeatedly brings up establishing “orbital AI compute” by putting servers in space as a massive opportunity for revenue and one that it is uniquely positioned to deliver. In January, SpaceX asked the Federal Communications Commission for permission to launch one million data center satellites into space to support a growing AI buildout.

It’s telling investors that SpaceX believes it has “identified the largest actionable total addressable market (TAM) in human history,” potentially worth $28.5 trillion, with $370 billion from space, $1.6 trillion in connectivity with Starlink Broadband and Starlink Mobile, and $26.5 trillion in AI, which includes AI infrastructure, subscriptions, advertising, and $22.7 trillion in enterprise applications.

#SpaceX #filed #biggest #IPOBusiness,Elon Musk,News,Science,Space,SpaceX,Tech">SpaceX just filed for what could be the biggest IPO everSpaceX generated .67 billion in revenue in 2025, driven largely by its Starlink satellite internet service, which brought in more than  billion, as reported by The Wall Street Journal. The company lost over .9 billion last year, with capital expenditures soaring to .7 billion last year, a leap from .2 billion in 2024, as reported by The New York Times. xAI, which recently merged with SpaceX, lost billions last year, while growing revenue by 22 percent, according to TechCrunch.For months, rumors have swirled that SpaceX was preparing a historic market debut, with whispers of a .75 trillion valuation and a record-shattering  billion raise. Now that the paperwork is public, we finally have our first real look at the financials behind the company that normalized reusable rockets, built a space internet monopoly, and absorbed Musk’s xAI and the dredges of Twitter into its orbit.Several of our anticipated market opportunities, including certain AI, orbital, lunar, and interplanetary transportation and industrial activities, are still emerging and evolving or do not currently exist, and such markets may not develop as we expect, or at all.It also says its “substantial level of indebtedness could materially adversely affect our financial condition.”According to the WSJ, Musk’s supervoting shares will give him 85 percent control over the company. In addition to Musk, SpaceX president Gwynne Shotwell, and CFO Bret Johnson, the SEC filing lists several other members of SpaceX’s board of directors, including Google executive Donald Harrison, Tesla board member Ira Ehrenpreis, as well as investors Randy Glein, Antonio Gracias, Steve Jurvetson, and Luke Nosek.SpaceX describes its mission to investors as:Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars. To do this, we have formed the most ambitious, vertically integrated innovation engine on (and off) Earth with unmatched capabilities to rapidly manufacture and launch space-based communications that connect the world, to harness the Sun to power a truth-seeking artificial intelligence that advances scientific discovery, and ultimately to build a base on the Moon and cities on other planets.SpaceX currently leads the industry in commercial space launches, with its massive Starship V3 rocket scheduled for flight on Thursday following a delay. The document repeatedly brings up establishing “orbital AI compute” by putting servers in space as a massive opportunity for revenue and one that it is uniquely positioned to deliver. In January, SpaceX asked the Federal Communications Commission for permission to launch one million data center satellites into space to support a growing AI buildout.It’s telling investors that SpaceX believes it has “identified the largest actionable total addressable market (TAM) in human history,” potentially worth .5 trillion, with 0 billion from space, .6 trillion in connectivity with Starlink Broadband and Starlink Mobile, and .5 trillion in AI, which includes AI infrastructure, subscriptions, advertising, and .7 trillion in enterprise applications.#SpaceX #filed #biggest #IPOBusiness,Elon Musk,News,Science,Space,SpaceX,Tech

reported by The Wall Street Journal. The company lost over $4.9 billion last year, with capital expenditures soaring to $20.7 billion last year, a leap from $11.2 billion in 2024, as reported by The New York Times. xAI, which recently merged with SpaceX, lost billions last year, while growing revenue by 22 percent, according to TechCrunch.

For months, rumors have swirled that SpaceX was preparing a historic market debut, with whispers of a $1.75 trillion valuation and a record-shattering $75 billion raise. Now that the paperwork is public, we finally have our first real look at the financials behind the company that normalized reusable rockets, built a space internet monopoly, and absorbed Musk’s xAI and the dredges of Twitter into its orbit.

Several of our anticipated market opportunities, including certain AI, orbital, lunar, and interplanetary transportation and industrial activities, are still emerging and evolving or do not currently exist, and such markets may not develop as we expect, or at all.

It also says its “substantial level of indebtedness could materially adversely affect our financial condition.”

According to the WSJ, Musk’s supervoting shares will give him 85 percent control over the company. In addition to Musk, SpaceX president Gwynne Shotwell, and CFO Bret Johnson, the SEC filing lists several other members of SpaceX’s board of directors, including Google executive Donald Harrison, Tesla board member Ira Ehrenpreis, as well as investors Randy Glein, Antonio Gracias, Steve Jurvetson, and Luke Nosek.

SpaceX describes its mission to investors as:

Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars. To do this, we have formed the most ambitious, vertically integrated innovation engine on (and off) Earth with unmatched capabilities to rapidly manufacture and launch space-based communications that connect the world, to harness the Sun to power a truth-seeking artificial intelligence that advances scientific discovery, and ultimately to build a base on the Moon and cities on other planets.

SpaceX currently leads the industry in commercial space launches, with its massive Starship V3 rocket scheduled for flight on Thursday following a delay. The document repeatedly brings up establishing “orbital AI compute” by putting servers in space as a massive opportunity for revenue and one that it is uniquely positioned to deliver. In January, SpaceX asked the Federal Communications Commission for permission to launch one million data center satellites into space to support a growing AI buildout.

It’s telling investors that SpaceX believes it has “identified the largest actionable total addressable market (TAM) in human history,” potentially worth $28.5 trillion, with $370 billion from space, $1.6 trillion in connectivity with Starlink Broadband and Starlink Mobile, and $26.5 trillion in AI, which includes AI infrastructure, subscriptions, advertising, and $22.7 trillion in enterprise applications.

#SpaceX #filed #biggest #IPOBusiness,Elon Musk,News,Science,Space,SpaceX,Tech">SpaceX just filed for what could be the biggest IPO ever

SpaceX generated $18.67 billion in revenue in 2025, driven largely by its Starlink satellite internet service, which brought in more than $11 billion, as reported by The Wall Street Journal. The company lost over $4.9 billion last year, with capital expenditures soaring to $20.7 billion last year, a leap from $11.2 billion in 2024, as reported by The New York Times. xAI, which recently merged with SpaceX, lost billions last year, while growing revenue by 22 percent, according to TechCrunch.

For months, rumors have swirled that SpaceX was preparing a historic market debut, with whispers of a $1.75 trillion valuation and a record-shattering $75 billion raise. Now that the paperwork is public, we finally have our first real look at the financials behind the company that normalized reusable rockets, built a space internet monopoly, and absorbed Musk’s xAI and the dredges of Twitter into its orbit.

Several of our anticipated market opportunities, including certain AI, orbital, lunar, and interplanetary transportation and industrial activities, are still emerging and evolving or do not currently exist, and such markets may not develop as we expect, or at all.

It also says its “substantial level of indebtedness could materially adversely affect our financial condition.”

According to the WSJ, Musk’s supervoting shares will give him 85 percent control over the company. In addition to Musk, SpaceX president Gwynne Shotwell, and CFO Bret Johnson, the SEC filing lists several other members of SpaceX’s board of directors, including Google executive Donald Harrison, Tesla board member Ira Ehrenpreis, as well as investors Randy Glein, Antonio Gracias, Steve Jurvetson, and Luke Nosek.

SpaceX describes its mission to investors as:

Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars. To do this, we have formed the most ambitious, vertically integrated innovation engine on (and off) Earth with unmatched capabilities to rapidly manufacture and launch space-based communications that connect the world, to harness the Sun to power a truth-seeking artificial intelligence that advances scientific discovery, and ultimately to build a base on the Moon and cities on other planets.

SpaceX currently leads the industry in commercial space launches, with its massive Starship V3 rocket scheduled for flight on Thursday following a delay. The document repeatedly brings up establishing “orbital AI compute” by putting servers in space as a massive opportunity for revenue and one that it is uniquely positioned to deliver. In January, SpaceX asked the Federal Communications Commission for permission to launch one million data center satellites into space to support a growing AI buildout.

It’s telling investors that SpaceX believes it has “identified the largest actionable total addressable market (TAM) in human history,” potentially worth $28.5 trillion, with $370 billion from space, $1.6 trillion in connectivity with Starlink Broadband and Starlink Mobile, and $26.5 trillion in AI, which includes AI infrastructure, subscriptions, advertising, and $22.7 trillion in enterprise applications.

#SpaceX #filed #biggest #IPOBusiness,Elon Musk,News,Science,Space,SpaceX,Tech
Microsoft is purchasing 650,000 metric tons of carbon removal credits from startup BioCirc, the company said today. 

As carbon removal deals go, it’s not a big buy. But this one is notable because last month, two reports said the tech giant was pausing its carbon removal deals. BioCirc confirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals.

For the carbon removal industry — and the startups that depend on it — there’s a big difference between a pause and a recalibration. Microsoft is reportedly responsible for more than 90% of the carbon removal credit market, meaning its purchasing decisions alone can determine whether young companies in the space survive.

Microsoft repeatedly denied that it had paused its carbon removal purchases. “Our carbon removal program has not ended,” Melanie Nakagawa, chief sustainability officer at Microsoft, told TechCrunch in a statement. “At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”

The new deal generates carbon removal credits from five BioCirc biogas projects. The biogas plants take biomass waste — frequently from agriculture — and use industrial bioreactors to turn it into methane and carbon dioxide. BioCirc captures the carbon dioxide and stores it in an underground reservoir offshore. The methane is then burned in a power plant. 

Microsoft’s sustainability goals have been strained by the company’s push into AI. To power its data centers in Texas, Microsoft last month said it was working with Chevron and Engine No. 1 to build a natural gas power plant in the state that could eventually generate 5 gigawatts of electricity. Emissions from that project alone promise to dwarf the deal with BioCirc.

Internally, Microsoft employees have also been debating whether to abandon the company’s goal of matching zero emissions electricity with its energy use on an hourly basis. Today, the company matches on an annual basis. That approach gives the company more flexibility to, say, use more natural gas to power its data centers at night, but it also makes the company’s clean energy claims harder to verify.

If Microsoft continues to pursue fossil fuel power plants, it’ll need to ramp up its carbon removal purchases to meet its 2030 target of becoming a carbon negative company (one that removes more greenhouse gases from the atmosphere than it generates). 

Last year, Microsoft signed several deals worth millions of tons of carbon removal credits. The program’s reported pause set off alarm bells throughout the carbon removal industry, which is still in its infancy.

The new deal suggests that Microsoft is, in fact, recalibrating its carbon removal program — not abandoning it. Whether that remains true as AI drives its energy consumption higher is something the industry will be watching.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Microsofts #carbon #removal #plans #arent #dead #TechCrunchMicrosoft,biogas,Exclusive,carbon credits,carbon removal">Microsoft’s carbon removal plans aren’t dead after all | TechCrunch
Microsoft is purchasing 650,000 metric tons of carbon removal credits from startup BioCirc, the company said today. 

As carbon removal deals go, it’s not a big buy. But this one is notable because last month, two reports said the tech giant was pausing its carbon removal deals. BioCirc confirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals.







For the carbon removal industry — and the startups that depend on it — there’s a big difference between a pause and a recalibration. Microsoft is reportedly responsible for more than 90% of the carbon removal credit market, meaning its purchasing decisions alone can determine whether young companies in the space survive.

Microsoft repeatedly denied that it had paused its carbon removal purchases. “Our carbon removal program has not ended,” Melanie Nakagawa, chief sustainability officer at Microsoft, told TechCrunch in a statement. “At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”

The new deal generates carbon removal credits from five BioCirc biogas projects. The biogas plants take biomass waste — frequently from agriculture — and use industrial bioreactors to turn it into methane and carbon dioxide. BioCirc captures the carbon dioxide and stores it in an underground reservoir offshore. The methane is then burned in a power plant. 

Microsoft’s sustainability goals have been strained by the company’s push into AI. To power its data centers in Texas, Microsoft last month said it was working with Chevron and Engine No. 1 to build a natural gas power plant in the state that could eventually generate 5 gigawatts of electricity. Emissions from that project alone promise to dwarf the deal with BioCirc.

Internally, Microsoft employees have also been debating whether to abandon the company’s goal of matching zero emissions electricity with its energy use on an hourly basis. Today, the company matches on an annual basis. That approach gives the company more flexibility to, say, use more natural gas to power its data centers at night, but it also makes the company’s clean energy claims harder to verify.


If Microsoft continues to pursue fossil fuel power plants, it’ll need to ramp up its carbon removal purchases to meet its 2030 target of becoming a carbon negative company (one that removes more greenhouse gases from the atmosphere than it generates). 

Last year, Microsoft signed several deals worth millions of tons of carbon removal credits. The program’s reported pause set off alarm bells throughout the carbon removal industry, which is still in its infancy.

The new deal suggests that Microsoft is, in fact, recalibrating its carbon removal program — not abandoning it. Whether that remains true as AI drives its energy consumption higher is something the industry will be watching.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Microsofts #carbon #removal #plans #arent #dead #TechCrunchMicrosoft,biogas,Exclusive,carbon credits,carbon removal

two reports said the tech giant was pausing its carbon removal deals. BioCirc confirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals.

For the carbon removal industry — and the startups that depend on it — there’s a big difference between a pause and a recalibration. Microsoft is reportedly responsible for more than 90% of the carbon removal credit market, meaning its purchasing decisions alone can determine whether young companies in the space survive.

Microsoft repeatedly denied that it had paused its carbon removal purchases. “Our carbon removal program has not ended,” Melanie Nakagawa, chief sustainability officer at Microsoft, told TechCrunch in a statement. “At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”

The new deal generates carbon removal credits from five BioCirc biogas projects. The biogas plants take biomass waste — frequently from agriculture — and use industrial bioreactors to turn it into methane and carbon dioxide. BioCirc captures the carbon dioxide and stores it in an underground reservoir offshore. The methane is then burned in a power plant. 

Microsoft’s sustainability goals have been strained by the company’s push into AI. To power its data centers in Texas, Microsoft last month said it was working with Chevron and Engine No. 1 to build a natural gas power plant in the state that could eventually generate 5 gigawatts of electricity. Emissions from that project alone promise to dwarf the deal with BioCirc.

Internally, Microsoft employees have also been debating whether to abandon the company’s goal of matching zero emissions electricity with its energy use on an hourly basis. Today, the company matches on an annual basis. That approach gives the company more flexibility to, say, use more natural gas to power its data centers at night, but it also makes the company’s clean energy claims harder to verify.

If Microsoft continues to pursue fossil fuel power plants, it’ll need to ramp up its carbon removal purchases to meet its 2030 target of becoming a carbon negative company (one that removes more greenhouse gases from the atmosphere than it generates). 

Last year, Microsoft signed several deals worth millions of tons of carbon removal credits. The program’s reported pause set off alarm bells throughout the carbon removal industry, which is still in its infancy.

The new deal suggests that Microsoft is, in fact, recalibrating its carbon removal program — not abandoning it. Whether that remains true as AI drives its energy consumption higher is something the industry will be watching.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Microsofts #carbon #removal #plans #arent #dead #TechCrunchMicrosoft,biogas,Exclusive,carbon credits,carbon removal">Microsoft’s carbon removal plans aren’t dead after all | TechCrunch

Microsoft is purchasing 650,000 metric tons of carbon removal credits from startup BioCirc, the company said today. 

As carbon removal deals go, it’s not a big buy. But this one is notable because last month, two reports said the tech giant was pausing its carbon removal deals. BioCirc confirmed for TechCrunch that the purchase agreement was signed in May, weeks after Microsoft reportedly paused new deals.

For the carbon removal industry — and the startups that depend on it — there’s a big difference between a pause and a recalibration. Microsoft is reportedly responsible for more than 90% of the carbon removal credit market, meaning its purchasing decisions alone can determine whether young companies in the space survive.

Microsoft repeatedly denied that it had paused its carbon removal purchases. “Our carbon removal program has not ended,” Melanie Nakagawa, chief sustainability officer at Microsoft, told TechCrunch in a statement. “At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”

The new deal generates carbon removal credits from five BioCirc biogas projects. The biogas plants take biomass waste — frequently from agriculture — and use industrial bioreactors to turn it into methane and carbon dioxide. BioCirc captures the carbon dioxide and stores it in an underground reservoir offshore. The methane is then burned in a power plant. 

Microsoft’s sustainability goals have been strained by the company’s push into AI. To power its data centers in Texas, Microsoft last month said it was working with Chevron and Engine No. 1 to build a natural gas power plant in the state that could eventually generate 5 gigawatts of electricity. Emissions from that project alone promise to dwarf the deal with BioCirc.

Internally, Microsoft employees have also been debating whether to abandon the company’s goal of matching zero emissions electricity with its energy use on an hourly basis. Today, the company matches on an annual basis. That approach gives the company more flexibility to, say, use more natural gas to power its data centers at night, but it also makes the company’s clean energy claims harder to verify.

If Microsoft continues to pursue fossil fuel power plants, it’ll need to ramp up its carbon removal purchases to meet its 2030 target of becoming a carbon negative company (one that removes more greenhouse gases from the atmosphere than it generates). 

Last year, Microsoft signed several deals worth millions of tons of carbon removal credits. The program’s reported pause set off alarm bells throughout the carbon removal industry, which is still in its infancy.

The new deal suggests that Microsoft is, in fact, recalibrating its carbon removal program — not abandoning it. Whether that remains true as AI drives its energy consumption higher is something the industry will be watching.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Microsofts #carbon #removal #plans #arent #dead #TechCrunchMicrosoft,biogas,Exclusive,carbon credits,carbon removal

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