NVIDIA's Nuclear Gambit: How AI's Energy Appetite Fuels TerraPower's Nuclear Renaissance

The tech sector's insatiable hunger for energy is driving a quiet revolution. NVIDIA, a titan of artificial intelligence (AI), has quietly staked its claim in the nuclear renaissance by investing $650 million in TerraPower, a nuclear innovator led by Bill Gates. This strategic move signals a seismic shift: advanced nuclear energy is no longer just about decarbonizing grids—it's becoming the backbone of the AI-driven economy.

Why NVIDIA is Bidding on Nuclear
NVIDIA's venture arm, NVentures, is betting on TerraPower's Natrium reactor to solve a glaring problem: AI's energy addiction. Training large language models can consume as much electricity as 100 U.S. homes annually, and data centers already account for 2% of global power demand. Traditional renewables like solar and wind are intermittent, while lithium-ion batteries lack the scale to meet 24/7 needs. Enter Natrium: a 345-megawatt reactor that can boost output to 500 MW for over five and a half hours, pairing nuclear baseload with molten salt energy storage.

This isn't just about reliability. Natrium's sodium-cooled core operates at atmospheric pressure—a radical safety upgrade over older designs—and produces 90% less long-lived nuclear waste. The first plant, under construction in Wyoming, is slated to begin operations by 2030, with regulatory approval from the U.S. Nuclear Regulatory Commission (NRC) expected by late 2025.

NVIDIA's valuation has risen 35% since early 2024 amid surging AI adoption, but investors now demand scalable energy solutions to sustain growth.

The Tech-Energy Synergy
TerraPower's vision aligns perfectly with NVIDIA's AI infrastructure ambitions. The Natrium plant in Kemmerer will sit at the site of a retired coal plant, repurposed to power future data centers. TerraPower has already partnered with Sabey Data Centers to explore direct integration of reactors into facility designs—a model that could become standard for hyperscale cloud providers.

“Nuclear isn't just about electrons anymore,” says Mohamed Siddeek of NVentures. “It's about enabling the AI economy without sacrificing the planet.”

Global Momentum and Risks
TerraPower's $650M fundraise (bolstered by $2B in DOE grants) is unlocking a $1.5 trillion global market for small modular reactors (SMRs). The company is now pursuing approvals in the UK, Japan, and South Korea, with HD Hyundai Heavy Industries manufacturing reactor components.

Yet risks loom. The NRC's draft environmental impact statement (due for public comment until August 2025) could delay timelines. Competing SMR projects, like NuScale's abandoned Utah plant, show that execution is everything. Still, bipartisan support—from Trump's pro-nuclear policies to the Inflation Reduction Act's $60B for advanced reactors—creates a tailwind.

Investment Implications
For investors, TerraPower's success hinges on two metrics: NRC approval by 2025 and operational proof by 2030. While the company remains private, its partnership network offers indirect exposure.

• NVIDIA (NVDA): A core holding for AI investors, now with a stake in nuclear's future.
• HD Hyundai (009150.KS): A supplier of reactor components, benefiting from SMR global expansion.
• Uranium plays: Higher demand for nuclear fuels could boost companies like Cameco (CCJ).

Avoid overpaying for speculative SMR startups. Focus on firms with physical assets (like TerraPower's Wyoming site) and government backing.

Final Verdict
NVIDIA's bet on TerraPower isn't just about power—it's about owning the infrastructure of the AI era. As data centers grow hungrier for clean, always-on energy, Natrium's blend of safety, scalability, and storage could make nuclear the unsung hero of the tech revolution. Investors who grasp this convergence stand to profit handsomely—and sustainably.

By 2030, TerraPower aims to have 10–12 Natrium units under construction—a milestone that could redefine energy's future.