Oklo Inc. (OKLO) shares climbed as much as 5.9% on Wednesday following reports that the advanced nuclear reactor developer is participating in a $200 million Trump administration-led initiative aimed at accelerating the construction of power plants to support the surging energy demands of artificial intelligence data centers.
According to a Bloomberg report citing a reviewed document, Oklo and X-Energy are joining the government program, which also includes technology giants Microsoft and Nvidia. The initiative is expected to be formally announced at an AI energy summit convened by the U.S. Department of Energy. X-Energy shares also gained up to 3.2% on the news.
AI Data Center Growth Drives Nuclear Push
The initiative comes as policymakers and tech companies scramble to address the rapid increase in electricity consumption driven by the expansion of AI data centers. Bloomberg reported that the program aims to mitigate concerns that AI infrastructure buildout has contributed to rising electricity prices across the United States.
Technology firms such as Nvidia and OpenAI have previously flagged energy availability as a critical bottleneck for scaling AI adoption while maintaining U.S. competitiveness against China in artificial intelligence. The Department of Energy plans to leverage the initiative to speed up the development of next-generation nuclear facilities that can provide continuous, carbon-free electricity for large-scale AI computing.
Under the initiative, several DOE national laboratories and institutions, including the University of Texas at Austin, are expected to receive $60 million over three years, according to Bloomberg.
Program Targets Faster Nuclear Plant Development
One of the primary goals of the initiative is to reduce the time required to design, license, and construct new nuclear power plants. The program also seeks to lower the staffing needs for operating future facilities. The DOE estimates that approximately 300 gigawatts of new nuclear generating capacity will be needed by 2050 to meet future electricity demand, though advanced nuclear reactors have yet to operate on a commercial scale.
In parallel, the DOE has pursued other measures to support nuclear development, including plans to supply plutonium from Cold War-era nuclear weapons to commercial reactor developers.
AI Investment Reshapes U.S. Energy Priorities
This latest effort underscores the growing intersection between artificial intelligence, energy policy, and advanced nuclear technology. Electricity demand has accelerated after years of flat growth, driven largely by the power-hungry data centers that underpin AI models. The strain on power markets and its impact on consumer electricity prices have also become political issues ahead of the November midterm elections.
As governments and tech companies work to secure reliable power for the next phase of AI infrastructure expansion, initiatives like this highlight the strategic importance of nuclear energy in meeting the nation's future energy needs. For investors, the move signals increasing government backing for nuclear startups like Oklo, which could benefit from policy tailwinds as the AI boom reshapes energy priorities.
This article is for informational purposes only and does not constitute financial advice.
