Oklo Inc.’s shares experienced a significant surge in afternoon trading on Monday, fueled by Alphabet Inc.’s announcement of its intention to purchase power from small modular reactors (SMRs) developed by Kairos Power. This news comes as Google and other tech giants increasingly turn to nuclear energy to meet the escalating energy demands of the AI revolution.
Google’s commitment to purchasing power from a fleet of SMRs made by Kairos signifies the growing importance of nuclear energy in supporting the company’s clean growth objectives and its AI advancements. Michael Terrell, Google’s senior director for energy and climate, emphasized the critical role of nuclear energy in delivering clean and reliable energy sources for the grid, particularly in supporting the development of AI technologies. He highlighted the round-the-clock energy availability and clean nature of nuclear power as crucial elements for meeting Google’s energy demands.
The tech sector’s growing reliance on nuclear power stems from the need for constant and reliable energy supply for data centers, which are the backbone of the digital world. Nuclear energy offers an emissions-free solution that can meet these demands while also aligning with the sustainability goals of many tech giants. Google’s ambitious plan aims to have its first nuclear reactor online by 2030, with more reactors expected to follow through 2035. Google’s bet on nuclear energy is seen as a promising investment that could bring significant benefits to communities and power grids globally if successfully scaled.
The news of Google’s nuclear power venture sparked a broader uptick in nuclear stocks on Monday, with Oklo emerging as one of the most notable beneficiaries. Investors are speculating that Oklo could be the next company to secure a deal with a major tech player, considering its connections to OpenAI and Sam Altman.
Oklo went public in May through a merger with AltC Acquisition Corp, a special purpose acquisition company (SPAC) backed by Altman, who has served as Oklo’s board chair since 2015. Oklo is unique as the only publicly traded company chaired by Altman. Given Altman’s involvement with Oklo and OpenAI’s leading role in the AI space, a collaboration between these entities to address rising energy demands seems plausible. OpenAI recently secured substantial funding at a valuation of $157 billion, with investors including Nvidia, Microsoft, Thrive Capital, SoftBank, and Ark Funds.
Oklo’s stock closed Monday with a 9.73% increase. The stock continued its upward trend in after-hours trading, reaching $10.42, representing a 3.78% gain, according to Benzinga Pro.