Oklo Inc., a nuclear power startup, saw its stock price soar by 5.27% in after-hours trading on Monday. This surge came amidst broader concerns about the potential impact of advancements in artificial intelligence (AI) on the power and energy sector.
The rally in Oklo's shares followed a turbulent day for AI-exposed power stocks, as the release of a new AI model by Chinese startup DeepSeek raised questions about potential shifts in the AI market landscape. Major players like Constellation Energy, Vistra Corp, and GE Vernova all experienced significant declines, with shares tumbling by as much as 21%.
DeepSeek's AI model is viewed as competitive with chatbots from industry leaders like OpenAI, yet it requires fewer AI chips and is cheaper to develop. This development has fueled concerns about the future spending levels and dominance of US tech giants in the AI space, particularly given their significant energy demands for data centers.
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