Key Points
Investment banks and analysts forecast up to $7 trillion in spending by 2030 to expand artificial intelligence (AI) data center infrastructure, critical for supporting the rapidly growing AI sector. Much of this expenditure will focus on power generation systems, as incumbent providers cannot meet increasing energy demands, prompting a substantial infrastructure build-out.
Oklo, a notable player in the nuclear energy sector and backed by OpenAI CEO Sam Altman, is developing small modular reactors (SMRs) to address these energy needs. However, the company’s regulatory approval process for commercialization is ongoing after its initial application was denied in 2022. Oklo’s valuation currently stands at $8 billion, significantly higher than its competitor NuScale Power, which has a market cap of approximately $4.6 billion and has secured regulatory approval for its designs.
NuScale’s key project, a 6-gigawatt deal with the Tennessee Valley Authority, is progressing toward a power purchase agreement (PPA) expected to be finalized by the end of 2026. If successful, this would enhance NuScale’s position in the market, making it a more attractive investment compared to Oklo, which is yet to confirm substantial financial commitments from customers.
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