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Oklo, a nuclear energy start-up, strikes major deal with Switch Inc
Oklo, a nuclear energy start-up chaired by Open AI’s Sam Altman, has struck a major corporate power supply deal with Switch Inc, a large privately held data centre operator.
20-year agreement to build reactors with a total capacity of 12 gigawatts
Under the 20-year agreement, Oklo will build reactors with a total capacity of up to 12 gigawatts, enough to power all 7.6mn households in New York state. The deal is considered one of the largest clean power deals in history, even though it is non-binding and the company’s technology is years from production.
Oklo’s CEO on the agreement: "We are entering a new world due to the size of the energy demand"
Oklo’s co-founder and CEO, Jacob DeWitte, said that if binding terms are reached, the deal could be worth multiple billions of dollars. He emphasized that nuclear energy is the only power source that can sustainably meet the massive energy demands of the AI revolution.
Big Tech’s bet on small reactors
Big Tech is increasingly betting on small reactors, new types of advanced nuclear plants with a capacity of 300 megawatts or less. No western company has yet successfully deployed the technology, but companies like Amazon, Google, and Microsoft are signing power deals with nuclear developers to provide low-carbon electricity to power their data centers.
Risks and challenges
DeWitte downplayed critics’ concerns about the risks inherent in nuclear energy, which is highly regulated and has been subject to delays and cost overruns. However, some analysts are skeptical that the new crop of nuclear start-ups will ever deliver.
Conclusion
The deal between Oklo and Switch Inc highlights the growing demand for high-wattage, low-carbon energy supplies to power the AI revolution. While there are risks and challenges associated with nuclear energy, the technology has the potential to play a significant role in meeting the energy needs of the future.
FAQs
Q: What is Oklo’s market capitalization?
A: Oklo’s market capitalization is $2.2 billion.
Q: Who are Oklo’s early investors?
A: Oklo’s early investors include technology entrepreneurs Sam Altman and Peter Thiel.
Q: Who is a director of Oklo?
A: Chris Wright, Donald Trump’s nominee to become US energy secretary, is a director of Oklo. He would step down from the board if confirmed by the US Senate.
