Nuclear Energy’s New Star: Oklo’s Meteoric Rise Amid AI Boom

In a remarkable turn of events, nuclear fission company Oklo has seen its shares skyrocket by 47% in just one week and an astonishing 400% over the past six months. This surge can be attributed to growing excitement about nuclear energy’s potential to power the rapidly expanding AI sector. The company’s market capitalization now stands at an impressive $21 billion, despite having yet to generate any revenue. The recent boost coincides with a significant agreement between the U.S. and U.K. governments to invest approximately $350 billion in AI, quantum computing, and nuclear energy. Adding to the momentum, Oklo recently broke ground on its first nuclear power plant at the Department of Energy’s Idaho National Laboratory, marking a tangible step forward in its ambitious journey to revolutionize energy production.

This meteoric stock rise has catapulted Oklo’s husband-and-wife cofounders, Jacob DeWitte and Caroline Cochran, into the billionaire ranks. The couple established Oklo in 2013 while DeWitte was pursuing his PhD in nuclear engineering at MIT and Cochran had just completed her work as a marketing and engineering consultant after earning her master’s degree in nuclear engineering from MIT. The company’s name draws inspiration from uranium-rich mineral deposits in Oklo, Gabon, which underwent natural fission two billion years ago – a fitting metaphor for their groundbreaking aspirations. Each founder now boasts a net worth of approximately $1.7 billion, based on their combined 16% stake in the company and roughly $30 million from share sales. At 42, Cochran joins an elite group as one of just three dozen self-made women billionaires in the United States and one of only six under the age of 50, highlighting the rarity of her achievement in a male-dominated industry.

Despite its soaring valuation and recent groundbreaking ceremony, Oklo faces significant challenges ahead. The company reported losses of approximately $25 million in the second quarter alone and $55 million for the year ending in June. What it lacks in revenue, however, it makes up for in strategic relationships. Oklo has cultivated important connections in high places, including with Energy Secretary Chris Wright, who served on the company’s board until his government confirmation in February 2024. This relationship likely facilitated access to former President Donald Trump, who signed executive orders to accelerate nuclear development after a May meeting where DeWitte emphasized nuclear energy as “a manifestation of energy dominance.” Following this executive action, the Department of Energy has established an aggressive timeline for three new small-scale nuclear reactor designs to achieve first criticality by July 4, 2026. While Oklo’s relationship with regulators hasn’t always been smooth – the Nuclear Regulatory Commission rejected its reactor application in 2022 due to insufficient information sharing – the company now appears to have secured the federal support it needs as it participates in a DOE pilot program stemming from Trump’s executive orders.

Another key relationship in Oklo’s rise is its connection to Sam Altman, the high-profile tech entrepreneur who cofounded AltC, the SPAC that took Oklo public. Altman served as Oklo’s board chair from 2015 until April 2024, stepping down to potentially facilitate strategic partnerships between Oklo and OpenAI for deploying clean energy to power AI infrastructure. Altman maintains a substantial stake in the company, valued at approximately $880 million – most of which originated from his purchase of founder shares in AltC for just $0.002 per share in 2021, representing a staggering 70,000x return on investment. OpenAI’s chief operating officer Brad Lightcap was also involved in AltC, though his current role in Oklo remains unclear. These connections to AI leadership position Oklo strategically at the intersection of two transformative technologies – nuclear energy and artificial intelligence – potentially creating a symbiotic relationship where clean nuclear power fuels the energy-hungry data centers that power AI systems.

Oklo’s technological approach centers on fast fission power plants that use faster-moving neutrons to split atomic nuclei and generate energy, differentiating themselves from conventional reactors that employ slower neutrons and water-based cooling systems. The company is focusing on small-scale reactors, which the Department of Energy views as more capital-efficient and flexible, though critics advocate for additional research regarding potential waste generation. Oklo’s unique business model involves designing, building, owning, and operating its own plants, with plans to sell power directly to consumers through purchase agreements rather than to large utilities. However, the company faces significant competition in the experimental nuclear space, including from Bill Gates-backed TerraPower, Amazon-backed X-energy, Kairos Power (which has contracted with Google), and Aalo Atomics. Even Altman appears to have hedged his bets by investing heavily in nuclear fusion startup Helion, which expects to deliver pre-purchased electricity to Microsoft by 2028. As CoreWeave’s chief strategy officer Brian Venturo notes, smaller companies lack the financial resources to directly purchase experimental nuclear power, suggesting Oklo will need to compete for contracts from larger tech firms.

Despite having no revenue and continued losses, Oklo has garnered significant enthusiasm from investors, with more than two-thirds of Wall Street analysts rating it as a buy and 90% of retail investors maintaining long positions. The company is currently working to raise up to $1 billion in additional capital to finance its ambitious goals, which include getting a plant online by the end of the decade. Oklo is not alone in achieving a billion-dollar market cap without revenue through SPAC mergers – self-driving car company Aurora Innovation and electric aircraft maker Archer Aviation have followed similar paths. However, investors should approach with caution, as competition intensifies and revenue generation remains years away. While Oklo’s success might pave the way for other nuclear startups to go public, the road ahead contains significant technological, regulatory, and financial challenges. The company’s ability to transform from a speculative investment into a commercially viable energy producer will ultimately determine whether its current valuation represents the dawn of a nuclear renaissance or simply investor exuberance in a promising but unproven technology.