Sam Altman, OpenAI’s chief and self-proclaimed “not in it for the money” visionary, has found himself with a serious win in Oklo. Oklo’s stock has surged over 150% this October, driven by major deals with Big Tech as companies like Microsoft, Amazon, and Google increasingly turn to nuclear energy for their vast AI and data center power needs. And given the astronomical energy demands projected from AI, Oklo’s timing couldn’t be better.

The numbers tell the story: by 2030, data centers alone are expected to use up 12% of the U.S. energy supply, a jump from today’s 4%, according to McKinsey. With AI technology driving unprecedented demand, Microsoft decided to act first, securing a 20-year contract with Constellation Energy to bring nuclear power into its data centers. 

Amazon and Google quickly followed, signing contracts in October to explore Small Modular Reactor (SMR) technology. Citi analysts predict the SMR market could grow to $300 billion by 2040, making nuclear a high-stakes move for tech giants who need dependable, round-the-clock power to support AI systems.

Oklo is riding this “nuclear renaissance” with its unique SMR design. Unlike traditional reactors, which are massive and costly, Oklo’s SMRs are much smaller, generating anywhere from 50 to 300 megawatts. They’re also designed to be cheaper and quicker to deploy, estimated at a few hundred million dollars compared to the billions it takes to build a standard reactor. The compact size allows them to be set up directly at data center locations, offering tech giants a reliable, independent power source.

Altman isn’t going it alone. Oklo’s backers include notable investors like Cathie Wood and Peter Thiel, who see serious potential in the company’s plans to provide direct, clean energy to tech companies. Oklo went public earlier this year through a merger with AltC Acquisition Corp., which Altman co-founded, and he now holds a 2.6% ownership in the company. Unlike many nuclear companies that sell licenses to utilities, Oklo aims to own and operate its reactors, directly supplying power to clients. CEO Jacob DeWitte believes this will streamline operations and help Oklo launch its reactors faster.

Despite the excitement, Oklo’s business model still faces considerable hurdles. For one, SMRs need to be licensed, and U.S. Nuclear Regulatory Commission approvals can take years – not exactly a speedy process. Then, there’s the fuel issue: many SMRs, including Oklo’s, require HALEU (high-assay low-enriched uranium), a type of uranium currently sourced primarily from Russia. Oklo and other nuclear companies are pushing for a domestic supply chain, though it’s a long shot without significant regulatory support.

The outlook for nuclear energy is promising, with Morgan Stanley projecting $1.5 trillion in nuclear investments by 2050. Oracle’s Larry Ellison recently announced plans for a nuclear-powered data center, joining the trend alongside Microsoft, Amazon, and Google. However, Oklo is still early in its journey. Its first earnings report since going public showed a net loss of $53 million for the first half of the year, and Canaccord Genuity’s George Gianarikas cautioned that Oklo faces steep regulatory and logistical challenges before achieving profitability.

For Oklo, the demand from AI-fueled data centers offers a substantial opportunity. As more tech giants embrace the nuclear option to secure their power needs, Oklo’s 150% rise in October may be just the start. Despite Altman’s claims of modest motivations, Oklo’s rapid growth shows the financial potential is very real, even if there’s a long way to go before Oklo’s SMRs are a staple in Big Tech’s energy strategy.

P.S. Alright, before you get back to watching your favorite NFL team throw yet another interception (and then get hit with that endless Burger King jingle that somehow sticks like superglue)… here’s a quick heads-up.

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Stock.News has positions in Microsoft, Amazon, and Google.