By Mackenzie Tatananni

Oklo, a nuclear power company backed by Sam Altman, unveiled a partnership to deploy its cutting-edge power plants at data centers.

Oklo said it had signed a memorandum of understanding with RPower, a Texas-based power generation company, to deploy a phased energy model for data centers.

Under the terms of the agreement, RPower's natural-gas generators will be deployed within 24 months, followed by Oklo's Aurora nuclear reactors as they become commercially available. The Aurora reactors will ultimately supply most of the energy needed, relegating the gas generators to backup roles.

"This collaboration aims to ensure that data centers can access reliable energy today while building a clear and practical pathway to clean energy in the future," Oklo CEO Jacob DeWitte said in a statement.

Wedbush analysts initiated coverage on shares of Oklo last month with an Outperform rating and $26 price target, arguing that the start-up was poised to capitalize on the artificial intelligence boom. Shares closed at $24.23 on Thursday.

The company began trading on the New York Stock Exchange in May after going public through a merger with AltC Acquisition Corp., a special-purpose acquisition company headed by Altman, the CEO of OpenAI.

Oklo's Aurora powerhouses are meant to be more cheaper and easier to install than existing nuclear power solutions. The proposed design can run on nuclear waste and requires refueling as infrequently as once every decade.

Oklo plans to own, install, and operate its reactors, selling power directly. In December, the company signed an agreement with data- center operator Switch, aiming to deploy 12 gigawatts of power through 2044.

The first commercial Aurora powerhouse is set to be installed at Idaho National Laboratory by the end of 2027.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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January 17, 2025 08:30 ET (13:30 GMT)

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