Cathie Wood Invests $1.89 Million in Sam Altman-Backed Nuclear Startup: Is This The Future of Energy?

Cathie Wood Bets on Nuclear Startup Backed by Sam Altman

Cathie Wood, the CEO of Ark Invest, recently invested $1.89 million in Oklo, a nuclear power startup backed by OpenAI CEO Sam Altman. This investment comes as Big Tech seeks reliable energy sources to support the growing demand for artificial intelligence (AI) processing.

Why is Cathie Wood investing in Oklo?

AI and the data centers required to train these systems are projected to drive a significant increase in energy demand throughout the decade. McKinsey & Co. estimates that data center energy demand will rise by around 10% annually through 2030.

Oklo is developing advanced fuel-recycling technologies and working on providing clean energy for data centers. They have partnered with Wyoming Hyperscale to supply 100 megawatts of clean power for the next 20 years.

However, Oklo's future is uncertain. The Nuclear Regulatory Commission denied their application for the Aurora powerhouse in Idaho in 2022, citing a lack of safety information.

Oklo is confident that their project will eventually be approved and that they are on track to deploy energy in 2027.

The investment highlights a growing trend:

Many tech companies are turning to nuclear power as a solution for their energy needs, driving a potential nuclear renaissance. Bill Gates and Jeff Bezos are also investing in the sector.

Is Oklo a good investment?

Oklo stock has a 15 Composite Rating, which is significantly lower than the best-possible rating of 99. It has a 10 Relative Strength Rating and a 1 EPS Rating, which suggests a lack of recent positive momentum.

Despite the challenges, Oklo's potential to provide clean energy for a growing AI industry makes it an intriguing investment. It remains to be seen whether their technology will be successful and whether they will gain regulatory approval.