On October 5, 2026, Flex announced an agreement to sell $2.0 billion of Series A convertible preferred stock in Axiom Solutions International, its Cloud and Power Infrastructure segment, to funds affiliated with General Catalyst, Koch Equity Development and co-investors. The investment sets an initial enterprise value for Axiom of $37.5 billion. Flex filed the announcement with the SEC on an 8-K the same day.
Flex plans to separate Axiom into an independent public company in the first quarter of calendar 2027. The proceeds are to fund part of Axiom’s pending acquisition of EPC Power and repay any bridge financing for it, with the rest for dividends on the preferred stock and general purposes. The preferred pays a 10 percent cash dividend before the separation, stepping down to 6 percent in cash or 7 percent in kind afterward. General Catalyst gets the right to nominate one Axiom director after the separation. CEO Revathi Advaithi, expected to lead Axiom, described it as “squarely focused on the power, thermal, and compute infrastructure the AI era demands.”
Axiom is the part of Flex that supplies power and cooling equipment and IT infrastructure for data centers. Pricing it at $37.5 billion before it trades on its own makes the AI build-out’s physical supply chain - transformers, power conversion, thermal management - visible as a separate investment story from chips.
Why it matters: venture and industrial capital paying a large-cap valuation for data-center power hardware shows where AI spending now flows beyond GPUs. What it does not show: the release gives no Axiom revenue or profit figures, the enterprise value is set by a negotiated preferred-stock deal rather than a public market, and the investment and the spin-off both still depend on regulatory approvals and closing conditions.