Oklo Shares Fall 40% Post-SPAC, Altman Support Noted

Key Takeaway

• Oklo's shares fell 40% in NYSE debut after a merger with AltC Acquisition Corp., despite raising $306 million.
• The company, backed by Sam Altman and other tech moguls, aims to innovate with mini nuclear reactors for sustainable energy.
• Faces regulatory hurdles and financial challenges, including a denied application by the U.S. Nuclear Regulatory Commission in 2022.

Oklo's Market Debut

Sam Altman, the OpenAI chief executive, has expanded his portfolio by taking Oklo, an advanced nuclear fission company, public through a merger with AltC Acquisition Corp., a blank-check company he sponsored. The merger, announced in July and valued at about $850 million, concluded with Oklo's shares tumbling as much as 40% to $11 in their New York Stock Exchange debut. Despite the initial slump, the deal delivered more than $306 million in proceeds to Oklo, marking a significant milestone for the company which has yet to generate revenue. The stock's performance on its first day saw trading halted due to volatility, reflecting the market's mixed reaction to this new entrant.

Strategic Investments in Nuclear Energy

Oklo's business model focuses on commercializing nuclear fission with mini nuclear reactors, a departure from the conventional large-scale nuclear plants. These reactors, with a capacity of just 15 megawatts, are being developed for use at remote locations, such as oil drilling sites, and for powering data centers. The company's approach has attracted attention and investment from notable figures in the tech industry, including Bill Gates and Jeff Bezos, alongside Altman. This collective endorsement underscores a growing interest in nuclear energy as a sustainable solution to meet the escalating power demands of AI technologies and data centers.

Overcoming Regulatory and Financial Challenges

Despite the enthusiasm surrounding its public debut and the backing of high-profile investors, Oklo faces significant hurdles. The company's ambitious goal to have its Aurora reactor operational by the end of the decade is contingent on securing approval from the U.S. Nuclear Regulatory Commission—a process that has already seen setbacks with a denied application in 2022. Oklo's CEO, Jacob DeWitte, remains optimistic, citing the $306 million in proceeds from the merger as a substantial boost that reduces the immediate need for further equity financing. However, the path forward involves navigating regulatory challenges and substantial capital investments in plant infrastructure and technology.

Management Quotes

• Jacob DeWitte, Co-Founder and Chief Executive Officer of Oklo:

  "The $300 million gets us quite far. We don’t necessarily see a need to go back to the market from an equity perspective except for very new, high value-add things that we might pursue from an infrastructure perspective like fuel recycling, and things like that." "We’ve got regulatory work ahead of us for the next couple of years before we really transition into the heavier capital outlays for some of equipment that we’ll be investing in as part of the plant and building out the plant." "Getting out there, helping explain what we’re doing, having the business develop in parallel, all of that was pretty advantageous for us."