Nuclear Power: The Unseen Demand

As the world grapples with the need for clean, sustainable energy, one technology often overlooked is nuclear power. Oklo, a nuclear startup, is at the forefront of this revolution, with CEO Jacob DeWitte noting "crazy amounts" of demand. But why is nuclear power seeing such a surge in interest, and what does this mean for investors?

First, let's address the elephant in the room: safety. Nuclear power has long been associated with fears of meltdowns and radiation leaks. However, Oklo's use of small modular reactors (SMRs) and recycled nuclear waste fuel significantly reduces these risks. SMRs have lower upfront capital costs and can be constructed in factories, reducing construction time and labor requirements. Additionally, recycling nuclear waste fuel allows Oklo to produce more energy from the same amount of uranium, reducing mining requirements and waste disposal needs.

Moreover, Oklo's strategy of targeting data centers and AI compute needs differentiates its customer base and revenue streams from traditional nuclear power providers. Data centers, driven by AI's expanding compute demands, require reliable, abundant power. Oklo's SMRs offer a clean, scalable solution, attracting tech giants like Google, Amazon, and Oracle. This strategy exposes Oklo to the robust growth of the AI and data center sectors, diversifying its revenue streams and reducing reliance on traditional power grids.



Oklo's focus on radioisotope production and semiconductor doping through Neutron Transmutation Doping (NTD) further expands its market reach and potential revenue streams beyond power generation. The proposed acquisition of Atomic Alchemy allows Oklo to integrate radioisotope production into its fast reactor and fuel recycling technologies, addressing critical supply shortages in life-saving medical radioisotopes and advanced industrial applications. This strategic move enables Oklo to diversify its business into new sectors like biotech, pharmaceuticals, space, defense, and semiconductors, offering a competitive edge over traditional nuclear power providers.

In conclusion, the growing demand for nuclear power, particularly from data centers and AI compute needs, presents an attractive investment opportunity. Oklo's use of SMRs and recycled nuclear waste fuel addresses safety concerns, while its focus on high-growth markets and strategic acquisitions expands its market reach and revenue streams. As investors, we should keep an eye on this under-owned sector and consider the potential of companies like Oklo in our portfolios.