Oklo Inc Signs Agreement with Switch to Provide Nuclear Power

(Reuters) – Sam Altman-backed nuclear startup Oklo Inc announced on Wednesday a non-binding agreement to supply power to Switch, a Las Vegas-based data center operator (NYSE:SWCH).

Under this agreement, Oklo will develop Aurora Powerhouse nuclear reactors, targeting a total capacity of 12 gigawatts by 2044. Each Aurora Powerhouse reactor can produce a maximum of 15 megawatts electric, according to the U.S. Nuclear Regulatory Commission.

Why It's Important

Nuclear energy is nearly carbon-free and significantly more reliable than renewable sources like solar and wind. It is gaining traction as the world pushes for net-zero carbon emissions. Many U.S. utilities have begun sealing deals with major tech firms, including Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), to power their data centers with nuclear-generated electricity.

Market Reaction

Oklo's shares surged nearly 12%, reaching $21.41 prior to the opening bell.

Key Quotes

> "The timescale of this master agreement underscores Switch and Oklo's commitment to meeting artificial intelligence's growing electricity demands with clean, sustainable power," stated Oklo.

Context

Switch operates multiple data centers powered by renewable energy across the U.S. and serves clients like NVIDIA (NASDAQ:NVDA), FedEx (NYSE:FDX), Google (NASDAQ:GOOGL), and PayPal (NASDAQ:PYPL).

Oklo, which went public in May through a merger with Altman's blank-check firm, intends to launch its first small modular nuclear reactor by 2027.