Microsoft and ArcelorMittal invest in green Boston Steel startup spun out of MIT

Published , by Morgan Shaver

Big companies like Microsoft and ArcelorMittal have been looking for ways to help reduce their carbon emissions and with these efforts come investments into environment-friendly alternative options. Among these is startup company Boston Metal which first spun out of Massachusetts Institute of Technology (MIT) and is currently working on new ways to manufacture clean steel.

Speaking with CNBC, Boston Metal CEO Tadeu Carneiro remarked on the importance of steel, noting, “There is no economy, there is no infrastructure without steel. It's a big piece of the puzzle. I don't think this is obvious to everybody.”

Carneiro joined Boston Metal as CEO back in 2017 and comes with 40 years’ worth of experience in the industry having previously worked at Brazilian metals giant CBMM. Boston Metal had its first round of funding led by Breakthrough Energy Ventures (founded by Microsoft co-founder Bill Gates) back in 2018 and raised $20 million.

© Boston Metal

Most recently in 2023, Boston Metal shared it’d raised a whopping $120 million during its Series C round of funding led by steel giant ArcelorMittal, along with contributions from Microsoft and its Climate Innovation Fund. Using this latest batch of funding, CNBC reports that Boston Metal aims to ramp up production of green steel at its pilot facility in Woburn, Massachusetts. It’ll also support the construction of Brazilian subsidiary, Boston Metal do Brasil.

In 2024, Boston Metal plans to begin constructing a demonstration steel plant along with a commercial size plant later in 2026. For more on this, be sure to read through the full report from CNBC. Also check out some of our previous coverage including Microsoft’s (MSFT) Q3 2023 outlook guiding for gaming revenue to continue to decline, and Microsoft CEO Satya Nadella recently making statements about how the age of AI is upon us.