This will be the first product of its kind to deliver flexibility to energy curtailment in the AI space

BALTIMORE, July 17, 2024 – Energy curtailment software provider OBM, Inc. (“OBM”) announced today the launch of a first-to-market product to reduce energy loads for artificial intelligence computing in response to grid conditions. The product, an extension to Foreman, OBM’s large flexible load energy and operational management platform, is the first pause-less energy curtailment software that allows AI compute to work continuously without any computational or uptime interruptions during grid balancing events.

OBM has already curtailed more than 2.5 million megawatt hours – enough to power the average U.S. home for 250,000 years – through its energy optimization software, Foreman. Now, by harnessing Foreman’s powerful curtailment capabilities, OBM is focused on providing an essential function to the AI industry: curtailing energy use without interrupting model training or inference workloads.

AI compute continues to increase energy demands and strain power grids at an exponential rate. For example, AI models such as ChatGPT have a daily power usage that is equal to nearly 180,000 U.S. households, with a single query needing nearly 10 times more electricity than a Google search. These programs’ significant and increasing energy consumption has AI application users across industries in desperate need of a long-term solution. By developing a product that allows for automatic load reduction without interrupting AI processing, OBM is providing an essential service to AI trainers at a critical time for the industry.

During a curtailment event, OBM will be able to deliver more than 80% of the AI load back to the grid. While the AI industry has become exponentially power hungry, OBM’s product enables it to become one of the most impactful grid balancing resources, a title previously awarded to the cryptocurrency mining industry due to its rapid load responsiveness while minimizing end user impact. Foreman can bidirectionally reduce and increase the energy demand of AI workloads within 1 second, bringing unparalleled flexibility to grid frequency balancing efforts.

“OBM will continue to bring flexibility to large energy loads and industries that were previously deemed inflexible,” said Daniel Lawrence, CEO of OBM. “OBM has worked to develop a solution to the heavy burden artificial intelligence computing puts on energy grids, and we are excited to offer this new product to our customers and advance what the industry is capable of.”

OBM is dedicated to empowering the future through energy agility focused products, with roots in the management of large-scale Bitcoin mining where it quickly became the industry standard curtailment platform. To date, Foreman has saved its customers over $66 million dollars through effective energy management.

“We are proud to launch this first-to-market AI computing energy curtailment software that will reduce energy loads and support a renewable-focused future,” said Jeremy Ellis, Director of Power Strategies at OBM. “Not only will this product reduce energy costs for compute-focused hyperscalers, but it will ensure a more sustainable long-term use of AI training products that don’t add unnecessary stress to energy grids.”

The Foreman team has been working behind the scenes in recent months to revamp the look of the entire dashboard. This initiative was more than a facelift; our goal is to enhance the user experience and modernize the interface – bringing a pleasant upgrade to what customers use daily.

Here’s what’s been updated:

Design Refresh: The dashboard now sports a clean, modern design that emphasizes ease of use and visual appeal. This update is not just cosmetic—it makes the dashboard more intuitive and efficient for users.

Dark Mode Improvements: The dark mode has seen substantial enhancements, bringing a more refined and comfortable viewing experience during nighttime, in low-light environments, or just for everyday Dark Mode power users.

Chart Enhancements: The data charts are improved for better clarity and interaction, helping users digest complex information quickly. Specifically, the pie chart for miner types is now more advanced, showing a more granular level of miners.

Branding Update: Alongside UI improvements, we’ve debuted a new logo as part of an updated branding strategy to reflect the platform’s evolution and future direction.

Improved Color Contrast: We’ve fine-tuned the color contrast across the dashboard to reduce visual strain and improve readability.

Modernizing the design with these enhancements will elevate the dashboard’s usability and enrich the user experience. We aim to create a more visually appealing, intuitive, and user-friendly environment. These updates are designed to streamline workflows and make the overall interaction with the platform more enjoyable and efficient. We hope you like it!

We are excited to announce that Foreman has chosen Aprio Accounting for our 2024 SOC (System and Organization Controls) compliance audits and ISO 27001 certification.

Three key goals drive this switch. First, we seek the expertise of a top 20 US public auditing firm well-versed in the Bitcoin mining industry. Second, we aim to align with the Public Company Accounting Oversight Board (PCAOB), which oversees auditors of publicly traded companies. Third, we strive to create a robust and scalable system control framework tied to our SOC compliance. This strategic shift underscores Foreman’s dedication to achieving compliance and operational security excellence.

As Foreman embarks on a trajectory of significant growth, navigating through our industry’s unique challenges comes into focus. This realization is driven by an understanding that success in our market demands more than standard accounting expertise. In steps Aprio, who first issued a crypto-specific SOC report in 2019 and has been a leading provider of crypto accounting solutions ever since. We consider the partnership with Aprio a fundamental aspect of Foreman’s strategy, positioning us to take on innovative roles in different industries.

Several of our clients have gone through PCAOB audits as a prerequisite for becoming a publicly traded entity, so Foreman deemed it crucial to comply with the ASB (Auditing Standards Board) guidelines and ensure alignment with the PCAOB moving forward. The PCAOB champions transparency and honesty in financial disclosures; principles that Foreman deeply upholds.

Creating a scalable system control framework tied to SOC compliance involves developing a comprehensive and adaptable structure to manage and secure organizational systems, data, and processes. The design of this framework needs to evolve with the company’s growth while working within the changing regulatory landscape. With Aprio’s expertise, we eagerly anticipate crafting a system control framework that surpasses industry standards.

This collaboration marks a pivotal step in our commitment to delivering excellence, ensuring the utmost security, and upholding the highest standards of compliance. Together with Aprio, we anticipate setting new benchmarks in regulatory requirements.

In response to Lancium’s monopolizing practice of preventing competitors from entering the energy curtailment market in Texas, OBM, Inc. and Cholla Energy LLC jointly filed an Inter Partes Review (IPR) request of U.S. Patent No. 10,608,433 – the patent owned by Controllable Load Resource (CLR) supplier Lancium.

The Electric Reliability Council of Texas, Inc. (ERCOT) has established policies and programs to manage energy consumption and protect the grid from outages caused by excess demand. ERCOT created the Load Resource (LR) categorization as part of an innovative effort to provide rapidly deployable power back to the grid to promote balance. Bitcoin miners are prime candidates for this designation, helping manage energy consumption statewide, given their agility, scale, and limited end-user impact.

In addition to ERCOT policies, public utilities in Texas are beginning to require crypto miners to implement controls on their energy loads that Lancium products alone cannot fulfill. By limiting the introduction of innovative energy management and cost optimization software, crypto miners will be limited to compliance with ERCOT standards and will be unable to continuously improve their energy efficiency through measured load management and cost containment.

In theory, managing energy capacity of crypto mining should be an opportunity for technological innovation for energy management companies such as OBM and Cholla. OBM and Cholla Energy are taking critical legal action to open up the marketplace for other providers beyond Lancium.

Continuing to allow Lancium’s monopolizing patent does not uphold the spirit of innovation that today’s energy ecosystem—and Texas itself—was built on.

If Lancium’s monopolizing practices are upheld, it will set a dangerous precedent—and not just in Texas. Though CLRs are ERCOT-specific, ancillary services like them are currently being used in demand response programs across the US. Texas’ energy grid has experienced increased stress over the past two years, in part from the state’s growing cryptocurrency mining and high-density compute activities. Energy consumers across Texas will benefit from the innovation and products developed through marketplace competition.

In today’s digital age, protecting and maintaining the integrity of digital information is of utmost importance. Therefore, it is crucial for companies to continuously demonstrate their dedication to safeguarding sensitive data. Foreman is proud to announce its achievement of SOC1 and SOC2 compliance. This achievement highlights Foreman’s commitment to its customers by ensuring compliance with industry standards and maintaining impeccable data integrity.

This article sheds light on the essence of SOC1 and SOC2 compliance, delving into the significance of these distinct yet related certifications. We will explore the nuances between these compliance types, emphasizing their respective evaluation criteria and critical roles in upholding robust data protection. Moreover, we will unveil the advantages that Foreman’s dual compliance brings, highlighting its capacity to foster trust, establish partnerships, and solidify Foreman’s reputation as a guardian of data security.

Understanding Dual SOC Compliance

SOC1

The SOC 1 Type II compliance framework was designed precisely to appraise and confirm the effectiveness of an organization’s internal controls linked to financial reporting. SOC 1 compliance addresses financial data processing concerns that can influence a client’s financial statements. Under the SOC 1 Type II assessment, controls are evaluated for design and operational efficiency over an extended period. This comprehensive audit offers clients a heightened assurance regarding the reliability of financial information managed by service organizations. The attainment of SOC 1 Type II compliance assures clients that their financial data processing adheres to high standards, thereby enhancing the overall reliability of financial reporting procedures.

SOC 2

Similarly, the SOC 2 Type II compliance framework was meticulously crafted to evaluate and verify the effectiveness of an organization’s internal controls related to security, availability, processing integrity, confidentiality, and privacy. For SOC 1, SOC 2 compliance specifically caters to service organizations entrusted with sensitive customer data. This compliance type undergoes an exhaustive assessment process led by an independent auditor to determine whether the organization’s controls align with the defined criteria. The core focus of SOC 2 compliance lies in data security, availability, processing integrity, confidentiality, and privacy, reflecting the critical aspects of maintaining trustworthy operations in a digital environment.

Under the SOC 2 Type II evaluation, controls are not only scrutinized for their design but also assessed for their operational efficiency over an extended duration, typically six months or more. This rigorous evaluation offers clients a higher level of assurance regarding the consistency and reliability of controls implemented by service organizations. The attainment of SOC 2 Type II compliance signifies to clients that their sensitive data is being handled strictly with established high standards, consequently reinforcing the overall credibility of the organization’s commitment to maintaining secure and reliable data processing practices.

What Are The Benefits Of SOC 2 Compliance?

SOC 1 and SOC 2 compliance offer distinct benefits catering to organizational operations and assurance aspects. Here’s a breakdown of the advantages each compliance type brings:

Benefits of SOC 1 Compliance (Type II):

1. Enhanced Financial Reporting: assures clients that the financial data processed by service organizations aligns with industry standards, enhancing the credibility and accuracy of financial reporting.
2. Risk Management: The comprehensive assessment of internal controls in SOC 1 Type II compliance helps identify vulnerabilities and risks, allowing organizations to take proactive measures to mitigate them.
3. Client Trust: Demonstrates a commitment to maintaining high data processing standards, fostering trust among clients who rely on accurate financial data.
4. Regulatory Alignment: Financial data processing adheres to relevant regulations, making it easier to demonstrate compliance during audits.

Benefits of SOC 2 Compliance (Type II):

1. Data Security: Validates an organization’s commitment to data security, reassuring clients that their sensitive information is handled carefully.
2. Risk Reduction: Helps identify and mitigate potential security risks, minimizing the likelihood of data breaches.
3. Competitive Advantage: Sets an organization apart from competitors, especially in industries where data security is a key differentiator.
4. Client Confidence: Builds confidence among clients, partners, and stakeholders, strengthening relationships by demonstrating a dedication to protecting sensitive data.
5. Operational Efficiency: Leads to improved operational efficiency and streamlined processes.
6. Vendor Requirements: Many clients and partners require their service providers to be SOC 2 compliant, making it a prerequisite for business collaborations.
7. Data Breach Preparedness: Equips Foreman with protocols and procedures to respond effectively to potential data breaches.

For public companies, SOC 1 and SOC 2 compliance offer tailored advantages. SOC 1 compliance ensures precise financial reporting, building stakeholder confidence, and managing risk. In contrast, SOC 2 compliance emphasizes data security, reducing risks, and enhancing operational efficiency. Both compliance types align with evolving regulations and cultivate investor trust, equipping public companies to excel in their operating and regulatory endeavors.

In summary, SOC 1 compliance (Type II) zeroes in on financial data processing and reporting, whereas SOC 2 (Type II) casts a wider net by emphasizing broader data security and operational controls. Selecting the appropriate compliance type hinges on the organization’s and its clients’ unique needs. Whether the priority is accurate financial reporting or fortified data security, both SOC 1 and SOC 2 compliance, Foreman hopes to contribute to reinforcing trust, bolstering operations, and cultivating lasting relationships with all our partners.

On Wednesday, May 17th, OBM announced that we have filed a complaint in US District Court in the Southern District of Texas against Lancium LLC.

First and foremost, we want our customers to hear why we filed and the broader implications of this fight directly from us.

To start, some facts: Lancium has aggressively sought patents on software that it, OBM, and other suppliers offer to cryptocurrency miners who wish to qualify as Controllable Load Resources (CLRs) with ERCOT on the Texas grid. ERCOT has incentivized uptake in this and other demand-response energy curtailment programs in recent years, and the tech they are built on form a burgeoning industry, ripe for innovation and to help with energy grid management.

Bottom line: the software in question is essential for facilities to comply with ERCOT’s rigorous regulations and thus continue operating as CLRs. Surprisingly, Lancium successfully acquired a patent in March of 2020 that has let it corner this tech. Lancium has since aggressively defended the patent with initiating litigation and making threats of litigation.

To combat this, OBM is seeking a declaratory judgment declaring that we are not, as Lancium has wrongfully asserted, infringing on its patent by offering our customers these vital CLR compliance tools.

Lancium’s accusations regarding what we are doing are unfounded. Their aggressive intellectual property claims and threats of litigation have not only forced us to shut down our CLR offerings, but they’ve also iced numerous other software providers across the state. To be clear, this only applies to CLR; we are continuing our other energy management offerings.

We are not taking the step of filing this complaint lightly, and it was not our first attempt at resolution. However, extraordinary circumstances have demanded extraordinary action.

Lancium’s patent claims amount to an attempt to monopolize long-standing, publicly known tech and corner an entire regulatory sector. Its patent never should have been issued, and so long as it stands, miners who want to remain CLR compliant have no choice but to use Lancium’s products.

This is not competition. This is not good-faith regulatory cooperation. Most of all, this does not uphold the spirit of innovation that today’s cryptocurrency ecosystem—and Texas itself—was built on.

We are entering this fight to prove that all providers have the right to work with regulators, follow their regulations, and compete in the market without a cloud of litigation hanging over them. We are trying to stop the suffocation of a space that ERCOT itself wants to see grow, since by cooperating with CLRs it can better protect the grid from catastrophic surges like those seen in recent years.

If Lancium’s actions go unchecked, that cloud will spread—across the state, the nation, and everywhere that energy and cryptocurrency regulations meet. And while we’re all focused on Lancium’s impact on our mining industry, their patent, if left unchecked, affects all heavy energy users, such as data centers, manufacturers and other industries.  

On behalf of our customers, our competitors, and our industry, we can’t let that happen. That’s why we filed this complaint, and that’s why we believe the court will see it for what it is: an assertion of plain justice, fair play, and common sense.