Oklo Inc., a company developing advanced small modular nuclear reactors (SMRs), saw its stock soar by over 5% in pre-market trading on Thursday, November 1st. This surge can be attributed to the growing interest from major tech companies in SMR technology as a potential solution for their surging power needs, particularly for energy-intensive applications like artificial intelligence and data centers.

SMRs are a new generation of nuclear reactors that are designed to be smaller, safer, and more cost-effective than traditional large-scale nuclear power plants. These modular reactors can be produced in factories and transported to sites, potentially reducing construction times and costs. Additionally, many SMR designs incorporate passive safety features and alternative coolants that could offer improved safety compared to conventional nuclear reactors.

Recent announcements from tech giants like Alphabet (Google's parent company), Amazon, and Oracle have highlighted their plans to invest in SMR projects to meet their growing energy demands. Alphabet signed a power purchase agreement with Kairos Power for an up-to-500-megawatt SMR project, while Amazon is collaborating with X-energy on a 320 MW project in Washington state. Oracle's chairman, Larry Ellison, has also expressed interest in designing a data center with building permits for three SMR reactors.