Oklo, a nuclear power startup backed by OpenAI head Sam Altman, has signed an agreement to supply up to 12 gigawatts of energy to Switch, an AI provider and data center operator. The deal is worth $12 billion and will see Oklo develop, construct, and operate the necessary nuclear projects through a series of power purchase agreements.
Oklo expects its first Aurora powerhouse nuclear reactor to be operational by 2027. However, several companies are moving ahead with small modular reactors (SMRs) technology, with analysts predicting that Oklo will come online first in the coming years.
The announcement has led to a surge in Oklo’s stock price, jumping about 80% in 2024 as nuclear energy-related stocks have rallied broadly following announcements from other major companies. However, the company forecasts a full-year operating loss of $40 million to $50 million.
This deal highlights the growing demand for nuclear energy to support the growth needs of data centers and AI providers like Switch. As technology companies continue to invest in or partner with nuclear power providers, the industry is expected to see significant growth in the coming years.
Source: https://www.investors.com/news/nuclear-stocks-sam-altman-oklo-data-center-deal