Shares of Oklo Inc. (OKLO) surged on Monday, riding the wave of renewed interest in nuclear power, fueled by Amazon.com Inc.’s (AMZN) Amazon Web Services (AWS) announcement of a $500 million investment in the sector last week. This investment follows a similar move by Alphabet Inc.’s (GOOG) Google, which recently announced a deal to purchase power from a fleet of Small Modular Reactors (SMRs) developed by Kairos Power.
The growing demand for reliable, carbon-free energy to power their data centers, driven by the increasing energy demands of the AI revolution, is leading big tech companies to embrace nuclear power. This trend has created significant excitement within the nuclear industry, leading investors to speculate on further deals.
Oklo, a developer of fast fission power plants, has been a major beneficiary of this burgeoning interest. Oklo shares saw a jump last week following Google’s nuclear deal with Kairos, fueling speculation that Oklo, backed by OpenAI’s Sam Altman, could be the next to secure a deal with a major tech player.
Oklo CEO Jacob DeWitte emphasized the massive demand for power being driven by AI growth in a CNBC interview last week. He described Google’s recent nuclear deal as “just the tip of the iceberg” for the industry, highlighting the crucial role of nuclear energy in meeting this escalating demand. When asked about the potential for Oklo to sign a deal with OpenAI or announce a similar agreement to Google’s recent deal, DeWitte hinted at “a lot more to come.”
The excitement surrounding Oklo is reflected in its stock performance. Oklo shares closed Monday up 22.4% at $22.32. Other nuclear stocks also saw significant gains, including NuScale Power Corp. (SMR), which closed Monday up 4.23%, and Nano Nuclear Energy Inc. (NNE), which ended the session up 34.3%.
As the nuclear sector continues to attract major players like Amazon and Google, Oklo’s strategic position and potential partnerships make it a company to watch closely. The company’s commitment to delivering clean, reliable energy, coupled with its involvement in the rapidly growing AI sector, suggests that Oklo’s journey is just beginning.