SANTA CLARA, Calif. - Oklo Inc. (NYSE: OKLO), a company specializing in advanced fission power and nuclear fuel recycling, has announced partnerships with two leading data center providers to supply up to 750 megawatts of low-carbon power. These agreements, formalized through Letters of Intent (LOIs), will support data centers across the United States and expand Oklo's customer pipeline to approximately 2,100 MW.
The collaboration will see Oklo's Aurora powerhouse design deployed in select markets to meet the growing demand for sustainable and reliable energy solutions. The Aurora powerhouse has the flexibility to provide power directly on-site or nearby with units capable of 15 MW and 50 MW, which can be phased in to reduce project risks and financing costs.
Jacob DeWitte, Co-Founder and CEO of Oklo, commented on the customer response, stating it reflects confidence in the company's ability to provide clean, reliable, and affordable power. Oklo's business model involves building, owning, and operating powerhouses, which allows customers to adopt nuclear power generation easily while generating a steady revenue stream for Oklo by selling power rather than power plants.
The deployment of Oklo's powerhouses is designed to help industries reduce their dependence on traditional power grids, thereby preserving grid stability and potentially avoiding added costs for local ratepayers. With an increasing order book, Oklo aims to transform critical infrastructure and support sustainable growth.
Oklo has made significant strides in the clean energy sector, including receiving a site use permit from the U.S. Department of Energy, securing fuel material from Idaho National Laboratory, and submitting the first advanced fission custom combined license application to the U.S. Nuclear Regulatory Commission. The company is also developing advanced fuel recycling technologies in partnership with the U.S. Department of Energy and U.S. National Laboratories.
The forward-looking statements in Oklo's press release indicate the company's expectations for the future, which involve risks and uncertainties that could cause actual results to differ materially. These include risks related to the deployment of powerhouses, regulatory uncertainties, and the potential need for financing, among others.
This news is based on a press release statement from Oklo Inc. and reflects the company's current partnerships and business outlook.
In other recent news, Oklo Inc. has made significant strides in its operations, securing an Environmental Compliance Permit for its first commercial advanced fission power plant site at the Idaho National Laboratory. This development follows a Memorandum of Agreement with the U.S. Department of Energy, paving the way for site characterization activities. Oklo's progress also includes the conclusion of its lock-up period, which could potentially increase the stock's market liquidity, and the vesting of 50% of the Vesting Founder Shares held by the Sponsor, AltC Sponsor LLC.
The company has switched to Deloitte & Touche LLP as its new independent registered public accounting firm, demonstrating its commitment to financial accountability. Oklo also finalized a Memorandum of Agreement with the U.S. Department of Energy, enabling site investigations in Idaho for its first commercial advanced fission power plant.
Analysts from B. Riley and Citi have initiated coverage of Oklo, with B. Riley highlighting the potential of the company's advanced nuclear technology, while Citi adopted a neutral stance citing potential regulatory hurdles. Oklo has also entered into a Preferred Supplier Agreement with Siemens (ETR:SIEGn) Energy to further commercialize its advanced fission technology, a move supported by a $5 million cost-share award from the U.S. Department of Energy's Advanced Research Projects Agency-Energy. These are the recent developments for Oklo Inc.
InvestingPro Insights
Oklo Inc.'s recent partnerships to supply low-carbon power to data centers align with its strong market performance and growth potential. According to InvestingPro data, Oklo has shown impressive returns, with a 146.89% price total return over the past month and a 204.45% return over the last three months. This surge in stock price reflects investor optimism about the company's expanding customer pipeline and innovative clean energy solutions.
Despite these positive indicators, InvestingPro Tips highlight that Oklo is not currently profitable and analysts do not anticipate profitability this year. This aligns with the company's focus on long-term growth and infrastructure development, as evidenced by its partnerships and ongoing projects.
Interestingly, Oklo's stock price often moves in the opposite direction of the market, which could be attractive for investors seeking portfolio diversification. The company's market cap stands at $2.76 billion, indicating significant investor interest in its potential to disrupt the energy sector.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for Oklo, providing a comprehensive view of the company's financial health and market position.
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