Story
Oklo, X-Energy Stocks Surge on Report of U.S. Nuclear Power Initiative for AI Data Centers
Summary
Shares of nuclear energy firms Oklo and X-Energy jumped in after-hours trading following a report that they will join a $200 million U.S. government program to accelerate reactor development for the power-hungry AI industry.
Shares of nuclear energy companies Oklo Inc. (NYSE:OKLO) and X-Energy Inc. (NASDAQ:XE) surged in after-hours trading Tuesday following a report that they are part of a new U.S. government initiative to develop nuclear reactors to power artificial intelligence data centers.
Program Details
According to a Bloomberg report citing a document it reviewed, the two companies are joining a $200 million Trump administration program aimed at accelerating the development of new power plants. The initiative reportedly includes technology giants Microsoft Corp. (NASDAQ:MSFT) and Nvidia Corp. (NASDAQ:NVDA), which are central to the AI industry's expansion.
Details of the program may be announced as soon as Wednesday at an AI energy summit hosted by the U.S. Department of Energy. The document seen by Bloomberg also indicated that several of the department’s national laboratories and institutions, including the University of Texas at Austin, are slated to share $60 million over a three-year period as part of the effort.
AdMarket Reaction and Context
Following the news, Oklo shares rose 8% in after-hours trading, while X-Energy's stock climbed 12%. The investor enthusiasm reflects a growing focus on the immense energy requirements of the AI sector.
The initiative aims to address concerns that the rapid growth of AI data centers is straining national power grids and causing electricity prices to spike. Tech industry leaders, including executives from Nvidia and OpenAI, have previously identified reliable energy supply as a critical bottleneck for expanding AI capabilities in the U.S. and maintaining a competitive advantage over global rivals like China.
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