- Oklo is advancing nuclear fuel recycling through a partnership with Lightbridge to explore co-located fuel fabrication facilities. Additionally, the company is expanding into the data center market through an MOU with RPower, addressing the rising demand for clean energy in AI and cloud computing.
- Since going public in May 2024, Oklo has gained investor confidence with its unique business model of owning and operating powerhouses.
Oklo, a pioneering nuclear fuel recycling and fission technology company, continues to make significant strides in the clean energy sector. Focused on developing micro-sized nuclear reactors, Oklo aims to provide affordable, reliable, and widely accessible nuclear power.
Strategic Partnership for Fuel Recycling
On Tuesday, Oklo announced a new partnership to explore nuclear fuel recycling and reprocessing on a shared campus. The company signed a memorandum of understanding (MOU) with Lightbridge, a nuclear fuel developer, to evaluate plans for co-locating their commercial fuel fabrication facilities.
As part of the agreement, both companies will conduct a feasibility study to determine the viability of integrating Lightbridge’s commercial-scale fuel fabrication within Oklo’s proposed fuel fabrication facility. This collaboration is expected to advance nuclear fuel innovation while enhancing sustainability and efficiency.
Oklo’s Expansion Into the Data Center Market
January has been a pivotal month for Oklo. On January 17, the company signed another MOU with RPower, a Texas-based power generation company, to implement a phased energy model for data centers.
This move reflects the growing demand for clean, reliable energy to support the rapid expansion of artificial intelligence (AI) and cloud computing infrastructure. Oklo’s advanced reactors are positioned as an ideal solution to meet the power needs of energy-intensive industries.
Oklo’s Public Debut and Growth Strategy
Oklo went public in May 2024 following a merger with AltC Acquisition Corp, a special-purpose acquisition company (SPAC) led by Sam Altman, CEO of OpenAI.
Currently in its pre-revenue stage, Oklo plans to install its first Aurora powerhouse at the Idaho National Laboratory by the end of 2027. The company’s innovative business model differentiates it from traditional nuclear energy providers—rather than supplying reactors under long-term contracts, Oklo builds, owns, and operates its powerhouses, selling electricity directly to customers. This approach ensures long-term recurring revenue and streamlines nuclear project implementation.
Analysts Bullish on Oklo’s Future
Wall Street analysts have taken notice of Oklo’s potential. On Friday, Wedbush analyst Dan Ives raised his price target on Oklo stock to $45, up from $26, while maintaining an Outperform rating.
Ives, who initiated coverage in December, believes Oklo is well-positioned to benefit from the AI-driven demand for clean energy. He highlighted the company’s innovative approach to nuclear power as a major advantage in scaling energy solutions for high-demand industries.
His optimism is shared by Craig-Hallum analyst Eric Stine, who initiated coverage on Oklo with a $44 price target on Tuesday. Stine emphasized nuclear energy’s increasing recognition as a renewable baseload power source and pointed out its bipartisan support, making it a key player in the global energy transition.
Growing Industry Partnerships
Oklo has been forging alliances across the energy sector. One notable partnership includes an agreement with Switch, a leading data center operator, to provide 12 gigawatts of power through 2044.
According to Stine, Oklo’s small modular reactors (SMRs) are a critical tool for meeting growing energy demands while supporting decarbonization efforts. These reactors offer 24/7 power availability, faster deployment, and lower capital costs compared to traditional nuclear facilities.
The Future of Oklo
With strong partnerships, a compelling business model, and increasing investor confidence, Oklo is positioning itself as a key player in the clean energy revolution. As demand for sustainable, scalable power solutions continues to rise, Oklo’s micro-sized reactors could play a crucial role in powering industries and data centers for years to come.
