425: Oklo CEO and COO Discuss Nuclear Energy's Role in AI Revolution and Business Combination with AltC Acquisition Corp.

Oklo executives discuss their business, nuclear technology, and the proposed business combination with AltC Acquisition Corp. in an interview at SXSW 2024.

Summary

• Oklo's CEO and COO discussed the company's focus on next-generation small nuclear power plants and their potential role in powering the AI revolution.
• They highlighted the need for massive amounts of energy to support AI and other growing demands, emphasizing that both fission and fusion technologies are crucial.
• Oklo's approach involves building on liquid metal-cooled fast reactors, using metal fuel, and prioritizing safety through physics-based design.
• The company aims to design, own, and operate power plants, selling power through long-term power purchase agreements.
• Oklo's reactors can utilize recycled nuclear fuel, extracting over 90% of the unused fuel from what is currently considered nuclear waste.
• The company is working towards scaling up and delivering plants, with announced projects in Idaho, Ohio, and Alaska.
• Oklo is pursuing a path to becoming a public company via a SPAC with AltC Acquisition Corp. to leverage project finance models.
• The company sees significant opportunities in the data center space, where AI is driving unprecedented energy demand.
• Oklo's smaller reactor sizes (15 MW and 50 MW) are well-suited to match the modular build-out of data centers and provide N+1 reliability.
• The company is also exploring opportunities in broad electrification, industrial processes, master-planned communities, and military bases.

Sentiment

Score: 8

Explanation: The document conveys a positive outlook for Oklo, highlighting its innovative technology, strategic partnerships, and growth opportunities in the energy sector, particularly with the rise of AI and data centers.

Positives

• Oklo's technology offers a clean, reliable, and affordable energy source.
• The company's reactors can utilize recycled nuclear fuel, reducing waste and lowering fuel costs.
• Oklo's smaller reactor sizes are well-suited to match the modular build-out of data centers.
• The company is pursuing a path to becoming a public company, which will provide access to capital for growth.
• Oklo has a strong management team with experience in the nuclear industry and a visionary approach.
• The company has secured a site use permit from the U.S. Department of Energy and was awarded fuel material from Idaho National Laboratory.
• Oklo has submitted the first advanced fission custom combined license application to the Nuclear Regulatory Commission.
• The company is developing advanced fuel recycling technologies in collaboration with the U.S. Department of Energy and U.S. National Laboratories.

Negatives

• The regulatory path for nuclear energy is challenging and time-consuming.
• Oklo's technology is different from traditional water-cooled reactors, which may require additional regulatory scrutiny.
• The company is pursuing an emerging market with no commercial project operating.
• Oklo will need financing to construct plants.

Risks

• The deployment of Oklo's powerhouses faces regulatory uncertainties.
• The company may need additional financing to construct plants.
• Market, financial, political, and legal conditions could impact Oklo's business.
• The inability of the parties to successfully or timely consummate the proposed business combination.
• The effects of competition could impact Oklo's market share.
• Changes in applicable laws or regulations could impact Oklo's business.
• The outcome of any government and regulatory proceedings, investigations, and inquiries could impact Oklo's business.

Future Outlook

Oklo anticipates scaling up and delivering plants, with announced projects in Idaho, Ohio, and Alaska, and is pursuing a path to becoming a public company via a SPAC with AltC Acquisition Corp. to leverage project finance models.

Management Comments

• 'Youre going to need as much as you can possibly get and so having a couple of shots on goal that have the potential to be massively scalable in a globally meaningful way, it kind of leans you to look at fission and fusion,' said Jacob DeWitte, CEO of Oklo, regarding the energy needs of AI.
• Caroline Cochran, COO of Oklo, stated that Sam Altman is a 'very visionary person' who has helped them think about how to start and run the company.
• Jacob DeWitte believes nuclear energy is 'the answer for so much of what were trying to do on the energy front period.'
• Caroline Cochran noted that 'its really, really slow until its insanely fast' regarding the regulatory path for nuclear energy.
• Jacob DeWitte stated that Oklo's business model is designed to 'make it easy for them to buy' clean, reliable, affordable, and scalable energy.
• Jacob DeWitte said that there is enough energy content in the nuclear used fuel in this country alone to power the entire United States electric energy needs for 150 years.
• Jacob DeWitte stated that the SPAC opportunity with Sam Altman's SPAC 'literally checks all the boxes we want to see.'

Industry Context

This announcement highlights the growing interest in nuclear energy as a solution to meet the increasing energy demands of AI and data centers, positioning Oklo as a key player in the next generation of nuclear power.

Comparison to Industry Standards

• Oklo's approach of using liquid metal-cooled fast reactors is based on a legacy of over 400 combined reactor years of operational experience, differentiating it from traditional water-cooled reactors.
• The company's focus on smaller reactor sizes (15 MW and 50 MW) contrasts with the traditional nuclear industry's focus on large, multi-billion dollar plants.
• Oklo's business model of designing, owning, and operating power plants, selling power through long-term power purchase agreements, is similar to the approach used by renewable energy companies.
• The company's ability to utilize recycled nuclear fuel sets it apart from other nuclear energy companies that rely on newly mined uranium.
• Oklo's collaboration with the U.S. Department of Energy and U.S. National Laboratories is similar to the government collaboration seen with other hard tech companies like SpaceX.

Stakeholder Impact

• Shareholders: Potential for long-term growth and value creation.
• Employees: Opportunities for career advancement and participation in a growing company.
• Customers: Access to clean, reliable, and affordable energy.
• Suppliers: Potential for increased business opportunities.
• Creditors: Potential for increased lending opportunities.

Next Steps

• Oklo will continue to develop and deploy its power plants in Idaho, Ohio, and Alaska.
• The company will work towards completing the business combination with AltC Acquisition Corp.
• Oklo will continue to engage with potential customers in the data center space and other industries.
• The company will continue to develop advanced fuel recycling technologies in collaboration with the U.S. Department of Energy and U.S. National Laboratories.

Key Dates