NuScale Power vs. Oklo: Which Small Modular Reactor Stock Offers the Better Long-Term Value for Energy Investors?

The global energy landscape is undergoing a seismic shift driven by the exponential growth of artificial intelligence (AI) and its insatiable demand for clean, reliable power. Small modular reactors () have emerged as a critical solution to meet this demand, with NuScale Power and Oklo Inc. positioning themselves as leading contenders in the race to power the AI-driven energy renaissance. This analysis evaluates both companies' strategic partnerships, technological advancements, and AI integration to determine which offers superior long-term value for investors.

NuScale Power: Regulatory Certainty and Scalable Deployment

NuScale Power holds a unique advantage in the SMR sector: it is the only vendor with U.S. Nuclear Regulatory Commission () design approval for its NuScale Power Module™ (NPM) according to press releases. This regulatory milestone provides a foundation for rapid deployment and investor confidence. In 2025, NuScale's exclusive global partner, ENTRA1 Energy, with the Tennessee Valley Authority (TVA), . This initiative directly targets the energy needs of AI data centers, semiconductor manufacturing, and national defense, sectors projected to dominate global energy consumption in the coming decade.

NuScale's modular design-capable of scaling up to 924 MWe with 12 modules-offers unparalleled flexibility for grid integration and industrial applications. Its partnerships with Fluor Corporation, Doosan Enerbility, and BWXT Canada further solidify its supply chain resilience, enabling cost-effective manufacturing and deployment across the U.S., Asia, and Europe. While NuScale , it faces challenges in securing binding power purchase agreements (PPAs) for its TVA projects. However, its NRC certification and strategic alliances with entities like TVA and ENTRA1 position it as a low-risk, high-impact player in the AI-driven energy transition.

Oklo: Speed and Innovation at the Cost of Regulatory Uncertainty

Oklo Inc. is pursuing a faster development path by leveraging the U.S. Department of Energy's () advanced reactor pilot program, bypassing full NRC licensing until later stages. , according to industry reports. The company's recent expansion of Aurora's capacity to 75 MW aligns with the power requirements of large AI data centers, which .

Oklo's partnerships with Liberty Energy and RPower provide hybrid power solutions, using gas-fired generation as a bridge while SMRs are developed. Additionally, its transatlantic collaboration with Blykalla AB aims to streamline fuel fabrication, reducing costs and regulatory risks. However, Oklo remains pre-revenue, with no commercial licenses and . While its modular design and DOE support offer agility, the lack of NRC approval and reliance on unproven regulatory pathways expose it to delays and operational uncertainties.

Strategic Positioning in the AI-Driven Energy Renaissance

Both companies recognize the critical role of SMRs in powering AI infrastructure, but their approaches diverge significantly. NuScale's TVA-ENTRA1 program is explicitly designed to meet the surging energy demands of AI data centers, with a $25 billion funding pipeline and a focus on carbon-free baseload power according to official announcements. In contrast, Oklo's Aurora SMR is tailored for modular scalability, but its deployment timeline hinges on DOE oversight.

From a financial perspective, , according to market analysis. However, Oklo's partnerships with Liberty Energy and RPower provide immediate revenue streams, mitigating some of its cash-burn risks.

Conclusion: NuScale for Regulatory Certainty, Oklo for Innovation

For investors prioritizing regulatory certainty and large-scale deployment, NuScale Power is the superior choice. Its NRC certification, TVA-ENTRA1 partnership, and U.S.-Japan funding framework position it to dominate the AI-driven energy sector in the 2030s. While its financials remain challenged, its strategic alliances and technological maturity justify a premium valuation.

Oklo, meanwhile, appeals to investors seeking high-risk, high-reward innovation. Its Aurora SMR and DOE-backed development model offer agility, but its reliance on regulatory shortcuts and lack of commercial licenses make it a speculative bet. For the AI-driven energy renaissance, where reliability and scalability are paramount, NuScale's established credibility and partnerships provide a clearer path to long-term value.