Sam Altman-led nuclear start-up will deploy 12GW clean energy capacity to power expanding AI datacenters.

Oklo, a nuclear energy start-up chaired by OpenAI CEO Sam Altman, has signed a landmark 20-year corporate power supply agreement with Switch Inc., a leading privately-held data center operator. A company statement says the deal involves the development of advanced nuclear reactors with a total capacity of up to 12 gigawatts.

Oklo’s uranium reactors will rely on small modular reactor (SMR) technology, which offers capacities of 300 megawatts or less - about one-third the size of conventional nuclear plants. These advanced reactors are designed to address the escalating energy demands of artificial intelligence while providing low-carbon, high-wattage energy solutions.

If finalized, Oklo claims the deal could rank among the largest clean energy contracts in history, with a potential valuation in the billions.

More to read:
OpenAI assembles team to stop AI from triggering a nuclear catastrophe

Despite the agreement’s non-binding nature and the fact that Oklo’s SMR technology is still years from production, Jacob DeWitte, Oklo’s co-founder and CEO, emphasized its significance for scaling the AI revolution’s energy needs. “Nuclear is the only sustainable option to meet the massive energy demand,” he said, underscoring that renewable energy alone would require extensive gas backup, which is less environmentally friendly.

Oklo-designed modular nuclear reactors. Credit: Oklo

The company aims to deploy its first 15MW reactor at Idaho National Laboratory by late 2027. Oklo’s reactors will need to be scaled significantly, with potentially hundreds of units required to meet the contract’s maximum terms and supply power to Switch’s data centers in Nevada, Texas, and Atlanta.

The unprecedented energy requirements of artificial intelligence have positioned nuclear power as a key solution. Unlike renewables, which require significant gas-powered backup, SMRs offer reliable, low-carbon energy, notes the company, which has assembled its team from professionals formerly employed by heavyweights like Google, Apple, Tesla, Boeing, SpaceX, and Netflix.

More to read:
Chinese startup unveils miniature atomic battery

The deployment of 12 GW is sufficient to power all 7.6 million households in New York State, according to FT, but Oklo not alone to partner with a Big Tech player in the nuclear development sector. Rival firms X-energy and Kairos Power, for example, recently signed agreements with Amazon and Google, while Microsoft entered into a corporate power deal in September with Constellation Energy to revive the Three Mile Island nuclear plant in Pennsylvania.

Chris Wright, an Oklo board member and Donald Trump’s nominee for US Energy Secretary, is expected to step down if confirmed by the Senate.

More to read:
Bill Clinton regrets for persuading Ukrainians to give up their nuclear weapons

Oklo, which went public in March 2024 with a $2.2 billion market capitalization, counts prominent technology investors such as billionaires Peter Thiel and Sam Altman among its backers. The U.S. Department of Energy and Argonne National Laboratory are its principal partners.

The company, founded in 2013, is based in Santa Clara, California.

Switch was founded in 2000 and is headquartered in Las Vegas, Nevada. It operates five primary data center campus locations, known as PRIMES, encompassing a total of 16 colocation facilities.

***
NewsCafe is an independent outlet that cares about big issues. Our sources of income amount to ads and donations from readers. You can support us via PayPal: office[at]rudeana.com or paypal.me/newscafeeu, or https://buymeacoffee.com/newscafe. Any amount is welcome.