Shares of Sam Altman-backed Oklo, a nuclear technoloy company, were up over 25% on Monday amid increasing fervor over small nuclear reactors.
Oklo have surged nearly 140% over the past month as investors increasingly view nuclear energy as a solution to growing AI energy demands.
SMRs offer a promising alternative, designed to produce faster, greener, and more affordable power than traditional reactors.
Tech giants Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOG) announced significant investments in SMR projects in October to meet the rising power needs of their AI-driven data centers while staying aligned with climate goals. Oracle Corp (NYSE:ORCL, ETR:ORC) executive chair Larry Ellison also revealed plans for an SMR-powered data center in September.
Goldman Sachs forecasts data center power consumption will increase by 160% by 2030, largely due to AI expansion.
While Oklo faces regulatory and supply chain challenges, including sourcing specialized fuel, its innovative approach using recycled materials and lower costs could position it as a leader in the nuclear renaissance.
Analysts expect the SMR market to grow substantially, with some estimates reaching $300 billion by 2040.