Shares of Oklo (OKLO 4.97%) popped on Friday after the power plant developer announced an energy supply deal with social media giant Meta Platforms (META 2.52%).
By the close of trading, Oklo's stock price was up nearly 8% after rising as much as 18.6% earlier in the day.
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Nuclear energy is needed to power the AI boom
The agreement will accelerate Oklo's development schedule for its 1.2-gigawatt (GW) power project in Ohio. Meta will prepay for energy to supply its artificial intelligence (AI) data centers in the area, thereby helping to fund the project.
Oklo intends to use the funds to obtain nuclear fuel and advance Phase 1 of its plans to build facilities on the 206 acres of land in Pike County it purchased from the Department of Energy.
NYSE: OKLO
Key Data Points
"Meta's funding commitment in support of early procurement and development activity is a major step in moving advanced nuclear forward," Oklo CEO Jacob DeWitte said in a press release.
Oklo plans to begin site suitability studies and pre-construction activities this year. The first phase of the multi-year development project is expected to come online by 2030.
Clean, reliable energy at scale
AI companies have turned to gas-fired power plants to meet their surging energy demands. Yet nuclear power could provide cleaner and potentially more affordable low-carbon energy supplies.
Oklo is designing its nuclear facilities to do just that, and AI titans like Meta Platforms are eager to partner with the power infrastructure builder to secure their future energy supplies.
