Shares of Oklo (OKLO 2.04%), a developer of liquid-metal-cooled fast reactors using high-assay low-enriched uranium (HALEU) for fuel, soared 19.4% through 10:40 a.m. ET Friday.
Yesterday, the Trump administration and the government of the United Kingdom announced a plan for developing the two countries' artificial intelligence, quantum computing, and nuclear energy sectors.
Total value: $350 billion.
Image source: Getty Images.
What you get for $350 billion
According to the British government, 150 billion pounds ($195 billion) will be invested in the U.K., which it calls a "record-breaking investment." The balance would therefore involve U.K. investment in the American AI, quantum, and nuclear sectors.
As regards nuclear in particular, the U.K. says:
- U.K. tech company Urenco and America's Radiant have signed a deal to supply $5.3 million worth of HALEU fuel to the U.S. -- which doesn't sound like much.
- Privately held U.S. company X-Energy will help Britain's Centrica build "up to 12 advanced modular reactors worth "at least" 40 billion pounds
- Privately held Last Energy and DP World will build "one of the world's first micro modular nuclear power plants" in London.
And...that's it.
Is Oklo stock a buy?
Now, the part about 40 billion pounds does sound intriguing, but Oklo investors need to notice that that deal doesn't appear to involve Oklo at all. Nor does the micro nuclear reactor in London. This leaves Oklo primarily benefiting from $5.3 million worth of HALEU fuel being made available to fuel its reactors.
If Oklo ever gets to build reactors.
From what I've heard, commercialization of the technology is still years away, and Oklo won't earn its first profit before 2030, if even then. Turns out, this story is a whole lot smaller than "$350 billion for nuclear."
And Oklo stock is still a sell for me.
