According to a report by the Financial Times, Oklo, a nuclear energy start-up chaired by OpenAI’s Sam Altman, has signed a groundbreaking corporate power supply deal as the energy sector seeks to meet the surging demands of artificial intelligence. The 20-year agreement with Switch Inc., a major data center operator, aims to build reactors with a total capacity of up to 12 gigawatts—enough to power all 7.6 million households in New York state.
The deal, touted as one of the largest clean power agreements in history, is non-binding but represents a potential multi-billion-dollar opportunity if finalized. Oklo’s advanced small modular reactors (SMRs) promise a capacity of up to 300 megawatts each, about a third of the size of traditional nuclear plants, and are expected to play a crucial role in supplying the high-wattage, low-carbon energy required by the AI revolution.
Oklo co-founder and CEO Jacob DeWitte emphasized that nuclear energy is uniquely positioned to meet the massive and sustainable energy needs driven by the rise of AI. “We are entering a new world due to the size of the energy demand,” DeWitte told the Financial Times. He argued that renewable energy sources alone are insufficient, citing the need for gas backup and the push for clean solutions.
Oklo plans to deploy its first 15MW reactor by late 2027 at the Idaho National Laboratory. The company joins a growing number of nuclear developers striking deals with Big Tech; X-energy and Kairos Power have partnered with Amazon and Google, while Microsoft recently entered an agreement with Constellation Energy to reactivate the Three Mile Island nuclear plant in Pennsylvania. These partnerships reflect the technology sector’s growing reliance on nuclear energy to power the next generation of AI systems.
The agreement with Switch Inc., which operates data centers in Nevada, Texas, and Atlanta using renewable power, would require Oklo to build hundreds of its small reactors across the U.S. to fulfill the contract’s terms. Altman and fellow tech entrepreneur Peter Thiel are among Oklo’s early investors, with the company currently valued at $2.2 billion after its New York listing in March.
The deal underscores a shift in how new technologies are financed and developed. Adam Stein, director of nuclear energy innovation at The Breakthrough Institute, noted that Big Tech’s willingness to assume technology and first-mover risks through power-purchase agreements could catalyze further investment in the nascent SMR industry. “This is how new technology gets to market,” he said.
However, critics remain skeptical. Edwin Lyman of the Union of Concerned Scientists questioned whether the agreements reflect the financial commitment necessary to bring speculative nuclear projects to fruition. Concerns also linger over nuclear energy’s environmental impact, including the indefinite storage of radioactive waste.
Despite these challenges, Oklo’s ambitious plans highlight the growing intersection of nuclear innovation and the technology industry. The energy demands of AI systems have placed nuclear power at the forefront of clean energy solutions, with Altman’s leadership positioning Oklo as a key player in this transformative era. Whether the start-up can overcome the regulatory, technological, and financial hurdles to deliver on its vision remains to be seen, but the industry’s eyes are firmly fixed on its progress.
