Oklo (OKLO) is a clean energy producer that aims to use advanced fission power plants to generate clean and affordable energy at scale. The company has two main objectives: providing commercial-scale energy and used nuclear fuel recycling services in the United States.
Founded in 2013, the company’s flagship product Aurora generates 15 megawatts of electricity, scalable to 50 MWe, or 50 million watts of electric energy. Aurora is capable of operating for 10 years before needing to refuel.
About Oklo Stock
With a valuation of $4.17 billion, the company has delivered stellar results, gaining nearly 260% over the past 52-weeks. The company went public in May 2024 through a special purpose acquisition company (SPAC) deal with AltC Acquisition, which is founded and managed by OpenAI’s Sam Altman.
The company has continued its momentum into 2025, gaining 82% this year and nearly 60% in the last week.
Sam Altman and Oklo
Sam Altman first got involved with Oklo in 2014, when he was still the president of startup incubator Y Combinator. In 2015, Altman invested in the company and became its chairman.
The move highlights Altman’s vision regarding nuclear energy’s importance, particularly with growing demand from artificial intelligence (AI) operations. Altman recognizes nuclear energy as the best alternative to solving this issue with market leaders following suit. Microsoft’s (MSFT) Bill Gates, Amazon’s (AMZN) Jeff Bezos, and Nvidia’s (NVDA) Jensen Huang have all invested in nuclear plants in order to meet their power requirements.
“I don’t see a way for us to [meet energy demands] without nuclear. I mean, maybe we could get there just with solar and storage. But from my vantage point, I feel like this is the most likely and the best way to get there,” said Altman to CNBC back in 2021.
Boost for Oklo and Nuclear Energy
Apart from AI, nuclear energy stocks have found a second catalyst to keep their run higher alive. The White House implemented a new tax credit eligibility rule on Jan. 3, under former President Joe Biden. The rule grants tax credit benefits to nuclear plants that are also clean hydrogen producers.
The move comes as the government tackles a nuclear shutdown problem in which the U.S. saw 12 nuclear power plants shut down in the last 12 years citing high maintenance costs, normal wear and tear, and public concerns surrounding nuclear energy.
The rule initially stated that the benefit would be available only new producers of clean energy, such as new nuclear plants, that are in the business of generating clean hydrogen. This received pushback from existing nuclear power companies. The amended rule now allows existing nuclear plants to quality for tax credits if they produce clean hydrogen and need the tax credits to avoid shutting down. Qualifying companies must also pass certain financial tests.
The government is offering credits of $3 per kilogram, with the rule stating that the producers need to keep moving their projects forward to make the U.S. a global leader in green hydrogen.
The move was further backed by the country’s largest nuclear company, Constellation Energy (CEG), which expressed its satisfaction while claiming it to be a big win for the industry.
Oklo Provides Third-Quarter Results
As my colleague reported earlier in January, Oklo is still a development-stage company and did not generate any revenue for the third quarter. Instead, in November, Oklo announced its deal with two new data center customers that lead to a 200% increase in its customer pipeline to 2,100 megawatts of projected power generation.
The company also received the regulatory green light to begin working on its first powerhouse plant in Idaho along with its $25 million acquisition of Atomic Alchemy. The acquisition provides access to radioisotope extraction technology and acts as a second revenue stream for Oklo.
Should You Buy OKLO?
Oklo’s recent run has caused shares to surpass analysts’ expectations as the stock trades above its mean price target of $28 and its Street-high rating of $31. The stock has a consensus “Moderate Buy” rating with two “Strong Buy” ratings and two “Hold” ratings from analysts. Despite the fact that OKLO stock has surpassed analyst price targets, I believe that recent positive developments can continue to drive shares higher.
