Sam Altman backed nuclear startup Oklo and signed a deal to supply 100 MW of nuclear power to data center company Wyoming Hyperscale, it was announced last week.
The news sent shares of NYSE-listed Oklo surging more than 30% in trading on Friday.
The companies signed a “non-binding letter of intent outlining plans for the PPA, which will last 10 years,” according to industry publication Data Center Dynamics. This is in addition to Oklo’s disclosure last month to supply up to 500 MW of power to another data center, Equinix.
“Wyoming Hyperscale is building a data center campus on 58 acres of land,” the report says.
Jacob DeWitte, co-founder and CEO of Oklo, commented: “As widespread adoption of artificial intelligence increases, Oklo remains committed to delivering clean, reliable and affordable energy solutions to meet the needs of our data center partners.”
“Our partnership with Wyoming Hyperscale underscores our commitment to advancing sustainable energy practices and supporting highly efficient operations within the data center industry.”
Trenton Thornock, founder of Wyoming Hyperscale, added: “Our goal is to create data centers with minimal impact on the environment. This partnership with Oklo aligns perfectly with our vision for sustainable, efficient operations. Combining sustainability with advanced technology, we are setting a new world standard for the future of accelerated computing.”
As we wrote earlier this month, Oklo received shareholder approval for its listing on the NYSE on May 8. The company’s mission is “to deliver clean, reliable and affordable energy on a global scale by designing and deploying next-generation fast reactor technology.”
Backed by investors like Jeff Bezos, Bill Gates and Peter Thiel, the who’s who of the AI revolution, nuclear fusion startups are gaining popularity. Sam Altman, who invested in Oklo in 2015, believes the company is “best positioned to bring advanced fission energy solutions to market,” according to a July press release.
Last month we published an extensive report discussing why the “electrification” trade, also known as the “Power-Up America” trade, is so urgently needed to keep all those electricity-guzzling data centers running, even as AI trade might be a problem. AI – is just getting started and actually happening substantially outperformed the broader AI and Data Center Equipment baskets over the past two months…
…and Altman – who earlier this year partnered with another energy company, Exowatt, to focus on clean energy for AI energy – agrees: “The two limiting things you see around the world today are intelligence, which we’re trying to work on with AI. and energy,” Altman told CNBC in 2021.
For those who missed it, in “The next AI trade”, we outlined various investment options Powering America, most of which have dramatically outperformed the market. In the next iteration, we’ll likely add Oklo to the list of beneficiaries, especially ahead of the inevitable cascade of buy reviews that are sure to flood the name in the coming month.
By Zerohedge.com
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