Oklo Stock Surges 18% After Announcing RPower Partnership

SANTA CLARA, Calif. — Oklo Inc. (OKLO) saw its stock surge 18% in afternoon trading Monday, marking its second consecutive day of gains following the announcement of a new partnership with electricity provider RPower. The company, which specializes in developing small modular nuclear reactors (SMRs), signed a memorandum of understanding with RPower to address energy demands for data centers.

Under the agreement, RPower will initially supply electricity to data centers using natural gas generators within approximately 24 months. Oklo will eventually take over the majority of the energy supply using clean power from its SMRs, relegating RPower’s generators to backup roles. The partnership aims to tackle both immediate and long-term energy challenges, according to Oklo CEO Jacob DeWitte.

“With a growing customer pipeline and a current order book of 14 gigawatts of energy, we are thrilled to work with RPower to address both immediate and long-term energy challenges,” DeWitte said in a statement.

Oklo’s stock has been on a steady rise, climbing 39% over the past month and 37% over the last three months. The company’s momentum has been bolstered by its innovative approach to clean energy and its expanding partnerships.

Adding to the company’s prospects, Oklo director Chris Wright has been nominated by former President Donald Trump to serve as Energy Secretary. Wright, who resigned from Oklo’s board pending Senate confirmation, could potentially provide strategic support to the company in his new role.

Oklo’s SMR technology represents a significant shift in the energy sector, offering a scalable and sustainable solution to meet growing electricity demands. The company’s focus on clean energy aligns with global efforts to reduce carbon emissions and transition to renewable sources.

While Oklo’s recent performance has captured investor attention, some analysts caution that the AI sector may offer more immediate returns. “While we acknowledge the potential of OKLO, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns in a shorter time frame,” said a spokesperson from Insider Monkey.

Despite the competition, Oklo’s partnership with RPower and its innovative SMR technology position the company as a key player in the clean energy landscape. Investors will be closely watching how the collaboration unfolds and its impact on Oklo’s growth trajectory.