Nuclear Startup Backed by Sam Altman Signs Major Data Center Contract

Nuclear Startup Backed by Sam Altman Signs Major Data Center Contract
Image Source: Lukas LehotskyBy Fri, 31 May 2024 19:18:00 GMT

Oklo has signed a non-binding letter of intent with Wyoming Hyperscale for a 10-year power purchase agreement. This collaboration highlights Oklo's dedication to delivering clean, reliable, and cost-effective energy solutions tailored to the needs of data centers.

Backed by renowned entrepreneur Sam Altman, Oklo announced last week its commitment to supply 100MW of nuclear power to Wyoming Hyperscale. The news caused a surge in Oklo's shares, rising over 30% on the NYSE. According to Data Center Dynamics, the agreement sets a foundation for the power purchase arrangement, marking a significant step towards sustainable energy in the tech sector. This announcement follows Oklo’s recent agreement to provide up to 500MW of power to Equinix, another major player in the data center arena.

Wyoming Hyperscale is developing a state-of-the-art data center campus spread over 58 acres. Jacob DeWitte, co-founder and CEO of Oklo, emphasized the importance of clean energy in the era of artificial intelligence, stating, “As AI adoption grows, Oklo is steadfast in our mission to offer clean, reliable, and affordable energy solutions for our data center partners.”

Trenton Thornock, founder of Wyoming Hyperscale, echoed this sentiment, saying, “Our aim is to build data centers with the least environmental impact. Partnering with Oklo aligns perfectly with our vision for sustainable and efficient operations, setting a new benchmark for the future of accelerated computing.”

Earlier this month, Oklo achieved shareholder approval for its NYSE listing, reinforcing its mission to provide clean, reliable, and affordable energy globally through advanced fast reactor technology. Supported by investors like Jeff Bezos, Bill Gates, and Peter Thiel, Oklo stands at the forefront of the nuclear fusion revolution. Sam Altman, an early investor, believes Oklo is best positioned to bring advanced fission energy solutions to market, enhancing the future of clean energy.

Last month, the "electrification" trade, essential for powering the increasing number of energy-intensive data centers, began to gain significant momentum. This trend has notably outperformed both the broader AI and Data-Center Equipment sectors in recent months. Sam Altman, who partnered with Exowatt to focus on clean energy for AI, highlighted the critical need for both intelligence and energy in the modern world.

In the analysis "The Next AI Trade," various investment opportunities for powering up America were discussed. Given Oklo's innovative approach and strategic partnerships, it is poised to become a significant player in this arena, likely attracting a wave of positive ratings in the near future.