AI-Backed Oklo Aims to Revolutionize Energy with Microreactors Amid Regulatory and Supply Challenges

OpenAI CEO Sam Altman-backed nuclear startup Oklo has announced its plans to begin preliminary construction of its first commercial microreactor. The U.S. Department of Energy has given its nod for site selection investigations in Idaho, with construction anticipated to commence in 2026 and operations to start by 2027. This timeline is contingent upon the approval from the Nuclear Regulatory Commission (NRC), which had previously rejected Oklo's initial application due to insufficient safety data.

Oklo's microreactor, named Aurora, promises a more compact and streamlined design, offering power outputs ranging from 15 to 100 megawatts or more, in contrast to the approximately 1000 megawatts delivered by traditional U.S. nuclear reactors. The demand for such modular power solutions is expected to rise, driven by the growing electricity needs of data centers and the tech sector's evolution toward energy-intensive AI processes.

The startup's trajectory is not tethered solely to the Idaho plant's timeline. Oklo has already secured letters of intent for 1,350 megawatts of power from prospective clients, up from 700 megawatts in mid-2023. CEO Jacob DeWitte envisions multiple reactors becoming operational between 2028 and 2029, necessitating a significant expansion of its supply chain.

Nevertheless, challenges remain. Oklo continues to face hurdles with nuclear fuel supply, compounded by the U.S. ban on Russian uranium imports. To mitigate these constraints, the Biden administration is investing $2.7 billion to bolster domestic nuclear fuel production, with Oklo collaborating with Centrus Energy, which has resumed enriching uranium domestically.

As the nuclear energy landscape undergoes transformation, Oklo seeks to leverage policy shifts, like the ADVANCE Act, aimed at expediting NRC's review of reactor licenses. However, the success of such initiatives largely depends on the political climate, particularly the upcoming U.S. presidential elections, which could influence nuclear energy policies significantly.