After Chinese AI startup DeepSeek launched a cost-efficient AI model, AI-related U.S. stocks, including those tied to powering AI data centers, saw a significant decline. However, shares of Sam Altman-backed nuclear energy company Oklo (NYSE: OKLO) surged by 96% in January, nearly doubling in value.
The sharp rise in Oklo’s stock was driven by two major developments:
One of the key catalysts for Oklo’s January rally was the announcement of the Stargate Project, an initiative tied closely to the future of the AI industry. Sam Altman joined President Donald Trump and Oracle founder Larry Ellison at the White House for the project launch, which promises to invest over $100 billion in AI data centers.
This massive investment is expected to generate significant energy demand, positioning nuclear energy as a stable and essential power source for these data centers. Consequently, stocks related to nuclear energy, including Oklo, drew renewed investor interest. Notably, as the Chairman of Oklo’s board and the CEO of OpenAI, Altman’s ties to the company strengthened speculation that Oklo may benefit from these industry trends.
However, a temporary negative sentiment hit Oklo (and many other AI-linked companies) after the launch of DeepSeek’s new technology. DeepSeek’s model posed a potential threat to the AI infrastructure ecosystem, creating short-term uncertainty for companies like Oklo. Despite this, subsequent positive news events quickly restored investor confidence.
– Fuel Fabrication Plant Memorandum of Understanding (MOU): Oklo signed an agreement with RPower to advance nuclear fuel production, showcasing the company’s ability to scale its operations and enhance the reliability of supply chains for data centers.
– Analyst “Buy” Rating: Investment firm Craig-Hallum raised its outlook on Oklo, estimating the stock could climb to $80 per share or higher. Analysts view Oklo as a key player in facilitating AI’s anticipated transition to nuclear energy—further fueling investor optimism.
Oklo wasn’t alone in the nuclear rally last year, as stocks like NuScale Power and Nano Nuclear Energy also thrived. This momentum continued into 2025, indicating that investors remain bullish on the small modular reactor (SMR) sector, of which Oklo is a significant part. Although Oklo’s SMR technology is still under development, its alignment with the Stargate Project has investors feeling optimistic.
Currently, Oklo’s stock appears to move in tandem with broader expectations of progress in the AI industry. For instance, shares surged this week following news that Alphabet (Google’s parent company) increased its capital expenditure from $52.5 billion in 2024 to $75 billion in 2025, signaling a significant boost in AI-related investments. Such investments, in turn, elevate demand for clean energy sources, including nuclear.
Looking ahead, Oklo’s potential deployment of its first Aurora powerhouse in 2027 remains a critical milestone that investors should watch.
With the convergence of AI and nuclear energy presenting a powerful growth narrative, Oklo continues to show immense potential as a rising star in the energy sector. As the company leverages its ties to AI’s future while advancing its nuclear technology, Oklo remains a stock to watch for growth-focused investors.
