Nuclear power startup Oklo soared in Wednesday’s stock market after the company announced it has been selected by the Department of Defense (DOD) to deploy its emerging nuclear reactor technology at the Eielson Air Force Base in Alaska.
After the market closed, Oklo reported it is commencing a public offering of $400 million in common shares, with an underwriters option to purchase up to an additional $60 million of common shares.
Oklo said late Wednesday that the proceeds of the offering will be used for “general corporate purposes, working capital and capital expenditures and potential future investments.”
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Chief Executive Jacob DeWitte said in the press release Wednesday that this agreement with the DOD and the Department of the Air Force “reflects continued confidence in Oklo’s ability to deliver clean and secure energy solutions for mission-critical infrastructure.”
DeWitte added that they were honored to support national defense resilience objectives while demonstrating the value of U.S.-pioneered fast reactor technology.
In 2024, Oklo went public through a merger with a SPAC led by Sam Altman, co-founder of OpenAI. Since then, it has secured letters of intent totaling over 1,350 megawatts from customers including the U.S. Air Force and major data center operators.
The company plans to deploy its first commercial reactor at Idaho National Laboratory by 2027, pending regulatory approval. Oklo aims to lead the next wave of nuclear innovation, supporting the growing demand for clean, resilient energy in high-tech industries.
Oklo is a U.S.-based nuclear startup founded in 2013 by MIT graduates DeWitte and Caroline Cochran. The company develops compact, fast reactors cooled by liquid metal called Aurora, designed for off-grid use in places like military bases, data centers, and remote communities. These reactors aim to run for up to 10 years without refueling, providing a safer, more efficient alternative to traditional nuclear plants. Oklo’s technology focuses on delivering clean, reliable power in a smaller, more flexible form factor.
Oklo being selected by the DOD is a major milestone that validates its technology and boosts credibility. It opens the door for steady, long-term contracts and demonstrates trust from a key government customer. This partnership highlights Oklo’s potential to provide reliable, clean energy solutions for critical infrastructure, especially in remote or off-grid locations. Successfully delivering on this project could accelerate regulatory approvals and attract more customers, both in the public and private sectors. Overall, it positions Oklo as a serious player in the emerging market for advanced nuclear micro-reactors.
“We believe this announcement is a direct result of the White House’s executive order promoting advanced nuclear reactors for DoD and national security interests, which created a new streamlined regulatory pathway that bypasses the NRC all together,” Dorsheimer wrote Wednesday.
“This Eielson and Oklo engagement was previously announced back in August 2023, but then rescinded a month later as the regulatory red tape tightened, citing the first pilot facility required significant scrutiny and coordination from all agencies. This is prime evidence of the over-burdensome regime that has thwarted nuclear adoption until now, and how quickly red tape can be cut back,” the analyst added.
The move also aligns with broader government efforts, including those from the Trump administration to support innovation in nuclear energy and reduce regulatory barriers.