A little more than a year ago, very few investors had heard of Oklo (OKLO +0.61%) -- a nuclear energy company that has since become a darling of the artificial intelligence (AI) revolution.
While renewable energy emerged as a critical focus area within broader AI infrastructure buildouts, Oklo benefited more from some star power than measurable progress. That's because the company was taken public through a special purpose acquisition company (SPAC) backed by Sam Altman, the CEO and co-founder of OpenAI.
Over the last 12 months, shares of Oklo have risen by 620% -- handily outperforming each "Magnificent Seven" stock, as well as the S&P 500 and Nasdaq Composite. While investing in Oklo stock has turned modest sums into abnormally high returns, I see a better opportunity living at the intersection of AI and energy demand.
Below, I'll break down why smart investors may want to have their eyes on GE Vernova (GEV 1.84%). Spoiler alert: Altman is the main character in this story, too.
NYSE: GEV
Key Data Points
Sam Altman: Mover and shaker of AI megadeals
Over the last year, Sam Altman has been something of a phantom -- constantly disappearing and reappearing among elite circles of technologists, corporate executives, and government officials.
Shortly after President Donald Trump was inaugurated in January, Altman spoke in the Oval Office along with Oracle founder Larry Ellison and SoftBank CEO Masayoshi Son to announce the creation of Project Stargate -- a joint venture that pledges $500 billion to enhance AI infrastructure initiatives over the next four years.
Then, over the summer, Altman made headlines once again after delivering the news that OpenAI was partnering with Google Cloud -- a move that many saw as a major blow to OpenAI's longtime collaborator, Microsoft Azure.
Perhaps the biggest news has come more recently. Over the last few weeks, OpenAI has announced the following strategic initiatives:
- An investment of up to $100 billion from Nvidia to build next-generation data centers.
- An alliance with Advanced Micro Devices to deploy 6 gigawatts of its new AI accelerators for further data center buildouts.
- Demonstrating its capabilities in AI in retail, it is partnering with the likes of Walmart, Shopify, and Etsy.
I have to give credit where credit is due. Despite intensifying competition from Anthropic, Perplexity, Alphabet's Gemini, and many more, Altman remains steadfast in maintaining OpenAI's first-mover advantage -- one billion-dollar deal at a time.
NYSE: OKLO
Key Data Points
Prediction: GE Vernova will sign a partnership with OpenAI
Outside of deals with hardware designers and retail juggernauts, another sector has also quietly been signing major contracts with AI developers: nuclear energy.
Around this time last year, Microsoft signed a landmark deal with nuclear energy provider Constellation Energy. Meanwhile, Amazon Web Services (AWS) acquired a data center from Talen Energy to bolster its own carbon-free ambitions.
To me, these deals signal a clear trend: AI consumes unprecedented levels of power, and hyperscalers are looking for alternative energy sources -- particularly low-cost renewables -- to scale their infrastructure.
Over the last few days, GE Vernova CEO Scott Strazik told the investment community that he's been meeting with Altman and his team frequently -- going on to say that OpenAI is a "critical piece" of the ongoing investment in enhanced AI energy protocols.
Given Altman's knack for striking deals, combined with the macro view that energy is going to evolve into a more prominent pillar supporting ongoing AI development, I think it's only a matter of time before OpenAI and GE Vernova make a market-moving announcement.
Image source: Getty Images.
Better Buy: Oklo vs. GE Vernova
Purely from a financial perspective, I can understand why some investors may be tempted to follow the momentum in Oklo stock. But the reality is that Oklo remains years away from tangible business progress.
Right now, the company only has prototypes -- meaning it will remain a capital-intensive operation with limited financial horsepower until revenue actually starts flowing through the door. Against that backdrop, I think Oklo's risk profile is best left for day traders willing to ride meme-driven narratives.
By contrast, GE Vernova is an established blue chip company with expertise across electricity, wind energy, and nuclear power. This diversified platform and strong reputation deliver an unparalleled value proposition when compared to unproven operations like Oklo.
For this reason, I see GE Vernova as a no-brainer compared to Oklo and view the stock as a more compelling opportunity for long-term investors.
