Last week, investors flocked to power-related stocks, leading to a doubling in the stock price of California-based advanced nuclear systems developer Oklo Inc. (NYSE: OKLO). The stock soared 115% to a record $19.72, peaking at $20.64, with a market capitalization exceeding $2.4 billion. This surge followed investments in next-generation nuclear companies by Amazon, billionaire investor Ken Griffin, and Alphabet’s Google.
Alongside Oklo, other nuclear stocks also saw significant gains. NuScale Power’s stock rose more than 35% last week, while Centrus Energy jumped over 60%.
In May, Oklo went public through a merger with a special purpose acquisition company (SPAC), AltC Acquisition, leading to volatile stock performance. The stock had plunged to a low of $5.35 on September 9 but surged over 200% in the last month and a half.
Oklo is developing small modular reactors (SMRs) and plans to deliver its first reactors in Idaho and Ohio. However, the company is still several years away from achieving this, likely before 2030. Additionally, Oklo is collaborating with the US Department of Energy and national laboratories to develop nuclear fuel recycling technologies to supply fuel for its reactors and others.
The company is backed by tech experts and decarbonization investors, including Sam Altman, who has been Oklo’s chairman since 2015. Altman is also the co-founder and CEO of AltC, but he is best known as the co-founder and CEO of OpenAI, the company behind the immensely popular ChatGPT.
Oklo is benefiting from the rapid development of artificial intelligence (AI) and other computing technologies, driving a surge in electricity demand, particularly with the rise of power-intensive data centers. Altman has noted that future AI systems will require massive amounts of energy, and nuclear fission and fusion can help provide it. Moreover, nuclear energy is cost-effective, helping to realize the goal of making AI and energy cheap and abundant.
Recently, US tech giants have been entering the nuclear energy sector, with Amazon (AMZN) emerging as a new supporter by signing three related agreements involving multiple SMR projects. Notably, Microsoft (MSFT) and Google are also proactively embracing nuclear energy.
The soaring stock price of Oklo has significantly increased the paper wealth of Altman, Klein, and executives Jacob DeWitte and Caroline Cochran. Data shows Altman holds about 3.2 million shares, valued at $60 million at last Friday’s trading price; Klein’s nearly 14 million shares obtained via the SPAC deal are valued over $260 million; DeWitte and Cochran together hold about 24 million shares, valued over $460 million.
However, under the current terms of the SPAC deal, these four investors are subject to a three-year lock-up period for their stocks. If, during 60 trading days, Oklo’s stock exceeds predetermined levels (between $12 and $16) for 20 days, parts of their holdings may be sold. Additionally, large venture capitalists who previously served as company directors can start reducing their stakes from early November.
