A key federal approval for Oklo’s advanced nuclear reactor is putting the company’s 14 GW pipeline for data center power into sharp focus, challenging its pre-revenue status.
Shares of Oklo Inc. (NYSE:OKLO) surged more than 13% after the U.S. Nuclear Regulatory Commission (NRC) approved the Principal Design Criteria for its Aurora powerhouse, a foundational regulatory step that de-risks its path to providing stable, carbon-free energy for the power-hungry artificial intelligence sector. The approval establishes a clear safety and performance framework, allowing future applications for the company's 75 MW small modular reactor (SMR) to proceed more efficiently.
“This milestone reflects strong work by the Oklo team and timely engagement by the regulator," Oklo co-founder and CEO Jacob DeWitte said in a statement. "Performance-based licensing, clear criteria, and efficient reviews are important to advancing modern nuclear projects safely and responsibly.”
The regulatory green light provides a powerful counter-narrative to the company's latest financial results. Oklo, which generates no revenue, reported a first-quarter net loss of $33.1 million, or 19 cents per share, deepening from a $9.8 million loss a year earlier. The company finished the quarter with a strong liquidity position of $1.59 billion in cash and equivalents, which will be critical as it ramps up spending on infrastructure and equipment, pouring $32.8 million into that area in the last quarter alone.
For investors, the central question is whether Oklo’s technical and regulatory momentum can build a revenue-generating business before its cash pile runs dry. The NRC approval is a significant validation of its advanced fission technology, but the company still faces the multi-year challenge of building and deploying its first commercial reactor, slated for 2028 at the Idaho National Laboratory.
A 14 GW Pipeline Meets Hyperscaler Demand
The strategic importance of the NRC approval is magnified by the explosive growth in energy demand from AI data centers. Oklo is positioning its Aurora SMR, a type of small, factory-built reactor, as a direct solution for providing the 24/7 baseload power that data centers require.
The company’s thesis is backed by a significant commercial pipeline representing approximately 14 GW of potential customer interest. This is anchored by a non-binding 12 GW Master Power Agreement with data center giant Switch, extending to 2044, and a 500 MW letter of intent with Equinix, which was supported by a $25 million pre-payment. These agreements with major data center operators suggest a clear market appetite for a nuclear-powered alternative to the grid.
To accelerate its design work, Oklo is leveraging the very technology it aims to power. The company recently announced a partnership with Battelle Energy Alliance to integrate the Prometheus AI platform from Idaho National Laboratory into its own design workflows, aiming to streamline the development of advanced reactor and fuel systems. This follows a separate collaboration with Nvidia to use its AI infrastructure for nuclear fuel modeling.
Analysts See High Reward, But Price Targets Diverge
Wall Street remains divided on how to value the pre-revenue, pre-deployment nuclear innovator. The stock’s 170% run over the past year highlights the market's enthusiasm for the nuclear-for-AI narrative, but its valuation remains a point of contention.
Following the NRC news, Texas Capital Securities reiterated a Buy rating on the stock with a $120 price target, citing the de-risking of the regulatory pathway. Tigress Financial Partners has also initiated coverage with a Buy rating and an even more bullish $130 target, pointing to Oklo’s Aurora sodium-cooled fast reactor as a key differentiator.
However, other analysts are more cautious. JPMorgan recently initiated coverage with a Neutral rating and an $83 price target, acknowledging Oklo's position in the SMR market but adopting a more wait-and-see approach given the long timelines and execution hurdles. The divergence in price targets, from $83 to $130, encapsulates the high-risk, high-reward nature of the investment.
This article is for informational purposes only and does not constitute investment advice.
