Oklo Inc., a nuclear power company backed by Sam Altman, saw its stock surge 5.16% in pre-market trading on Friday. The rally followed the company's announcement of a partnership with RPower to deploy its cutting-edge nuclear reactors at data centers.
Under the agreement, RPower will initially deploy natural gas generators within 24 months to supply power to the data centers. However, Oklo's Aurora nuclear reactors will take over as the primary energy source once they become commercially available. The nuclear reactors are designed to be more cost-effective, easier to install, and capable of running on nuclear waste with infrequent refueling intervals of up to a decade.
This collaboration aims to provide data centers with reliable energy sources while transitioning towards clean nuclear energy in the future. Analysts at Wedbush recently initiated coverage on Oklo with an Outperform rating and a $26 price target, citing the company's potential to capitalize on the growing artificial intelligence industry.
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