Elon, Trump, Waltz… Are The Stars Aligning for “Mama Cathie’s” New $2 Million Energy Investment?

You know that one anonymous reddit friend you have that continues to go “balls to the wall” on bad, unprofitable companies, convinced that once he’s proven right, he’ll be able to buy a yacht, pay off his student loans, mortgage, and probably his future grandkids' therapy bills—in that exact order? 

Yeah, well, it turns out Cathie Wood—Wall Street’s version of that one overly optimistic aunt who keeps buying lottery tickets—is doing something eerily similar. But instead of Palantir or Richard Branson’s Virgin Galactic, she’s betting on a nuclear power startup. Yes, we’re talking about Oklo, the Sam Altman-backed company that’s burning through cash faster than a teenage girl at Tanger Outlets.

Now, don’t get me wrong—Cathie Wood is no stranger to playing with fire. But this time, even her most loyal “Mama Cathie” fans are grimacing and shaking their heads in disbelief. Why? Because Oklo just reported a net operating loss of $25.1 million for the second quarter, with no sign of profitability in sight. In fact, they’re expecting to lose somewhere between $40-$50 million by the end of the year.

(Source: Fast Company)

Oklo’s stock has been anything but electrifying since its IPO, trading below its initial price of $10. And yet, Cathie Wood’s Ark Autonomous Tech (ARKQ) has been on a buying spree, up over $2 million worth of Oklo shares since mid-July. On Monday, she picked up 53,163 shares for a cool $374,799, and followed that up on Tuesday with another 7,506 shares. Clearly, she sees something the rest of us don’t—or maybe she just likes to live dangerously.

So, what exactly is Cathie banking on? Well, Oklo has some big plans. They’re working on deploying their first Aurora powerhouse by 2027, and they’ve got 1,350 megawatts worth of signed letters of intent from potential customers, up from 700 MW just a month ago. That’s a 93% jump, which sounds impressive—until you realize that these are non-binding agreements. Translation: It’s like saying you’ve got a date lined up, but you’re still waiting for them to text back and confirm they’re not ghosting you.

On top of that, Oklo is diving into advanced fuel-recycling technologies and is playing footsie with federal regulators. They’re confident that Uncle Sam will give the green light to their Aurora project. But here’s the kicker—they haven’t even delivered an operational reactor yet. So far, they’ve been all talk and no nuclear fission. It’s like that one friend who talks a big game about starting a business but can’t even get past setting up an LLC.

And let’s not forget the political winds that are starting to blow in favor of nuclear energy. From Elon Musk to former President Donald Trump, nuclear power is getting some high-profile nods. Even Minnesota Governor and VP candidate Tim Walz is warming up to the idea of new nuclear plants. It seems like everyone and their mother is getting on the nuclear bandwagon, hoping it’ll be the answer to the world’s energy mess.

But as with any startup, especially one in the energy sector, there’s a fine line between being an innovator and being an optimist with a cash-burning habit. Sure, there’s potential—small nuclear reactors like Oklo’s could be the next big thing for powering data centers and military bases. And with the U.S. Department of Energy throwing around $900 million in funding for SMR technologies, there’s no shortage of hype.

Still, you’ve got to wonder—will Oklo actually deliver on its promises, or is this just a side project for Sam Altman to keep himself busy while he counts his hundreds of millions? Cathie Wood seems to think the former, but only time (and a few more earnings reports) will tell if she’s right. And hey, if it all goes south, at least her Ark Innovation ETF shareholders can look forward to those life changing 1.61% gains over the past five years.

Stock.News does not have positions in companies mentioned.