Oklo’s Small Nuclear Plants Gain Attention as AI Boosts Demand for Electricity, but SPAC IPO Struggles Persist

Oklo Inc., a company developing advanced nuclear systems, recently went public through a merger with AltC Acquisition Corp., a SPAC sponsored by Michael Klein and Sam Altman, the CEO and co-founder of OpenAI. The company’s shares initially fell 40% during the debut on the New York Stock Exchange, cutting its valuation to around $1bn despite retail investors driving a 75% pre-listing rally. Oklo aims to bring small nuclear plants to remote locations, such as oil drilling sites, and for use in industrial areas. However, the company still requires approval from the US Nuclear Regulatory Commission for its Aurora reactor, which it hopes to have operational by the end of the decade. The surge in AI and other computing is increasing demand for electricity, creating an opportunity for small nuclear plants and data centres to partner. Serial sponsors are testing the waters with SPACs, with more high-profile deals being completed. After the merger, Oklo’s board includes Altman as chairman, alongside Klein, Lieutenant General (Ret.) John Jansen, Richard Kinzley and Chris Wright. Despite a tepid revival of the blank-cheque industry, SPACs remain popular, although many companies are struggling, with over 20% of the nearly 500 SPAC deals closing since 2019 trading below $1 each, representing a greater than 90% fall.