Shares of Oklo (OKLO 11.62%) jumped on Monday, finishing the day up 11.4%. The jump comes as the S&P 500 and Nasdaq Composite indexes both moved slightly higher.
The U.K. and the Czech Republic are teaming up to explore opportunities to deploy small modular reactors (SMRs) in the central European country. The news helped boost SMR stocks like Oklo's and added to growing momentum in the nuclear industry.
A new partnership
The possible deal was announced on Monday and would include up to six SMRs made by Rolls-Royce to be exported to the Czech Republic. The announcement follows last month's pledge from the U.K. government to invest $2.5 billion in building SMR technology. Although the news isn't explicitly about Oklo, it further validates SMRs as a viable technology and lifted shares of most SMR developers.
Image source: Getty Images.
Oklo has momentum
The company is working with the U.S. Air Force to bring an SMR to an Air Force base in Alaska. While the contract still needs to be finalized and would be contingent on Oklo developing a viable reactor in time, it would see the company's Aurora Powerhouse provide all the power the remote base needs locally, facilitating the base's independence from the grid.
SMRs offer unique advantages over traditional nuclear reactors. For critical infrastructure like an Air Force base that needs independence from the grid, SMRs make perfect sense. They're also perfectly suited for use by the massive data centers that power artificial intelligence, which is why OpenAI's Sam Altman took an early stake in Oklo and remains one of its largest shareholders.
If Oklo can produce a working, safe model, it will likely be very successful. Of course, with any company developing new technologies, there is no guarantee it will be successful. I think there is plenty of reason to believe it will be, however, and I think Oklo is a good pick.
