Electricity demand is growing worldwide due to the heavy energy needs of artificial intelligence (AI) data centers. Companies like Meta Platforms are turning to unique energy sources to ensure reliable electricity for their massive AI infrastructure, including power purchase agreements with Oklo (NYSE: OKLO).
Oklo is an upstart nuclear energy provider trying to build reactors for modern electricity solutions. The stock soared in 2025 but has since entered a sharp 65% drawdown from its October 2022 highs. Does that mean you should buy the dip on Oklo stock?
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Oklo has an ambitious plan to vertically integrate the nuclear energy market. Unlike traditional providers that sell equipment or license designs to utilities, Oklo wants to actually build its own reactors to sell energy directly to customers, such as data centers. This includes nuclear fuel recycling, radioisotopes, and the actual nuclear power plants.
For example, Oklo has signed a deal with Meta Platforms to potentially provide electricity for data centers in Ohio, with construction slated to start in 2026 and the reactor to come online in 2030. Like many other modern nuclear disruptors, Oklo has a small modular reactor design that will allow it to build small and scale up its infrastructure over time, hopefully growing alongside the AI data center space.
While it talks a big game, Oklo does not have any working products today, only ideas and designs. Its design for a nuclear reactor has not been approved by the Nuclear Regulatory Commission (NRC), and it cannot build a nuclear power plant until it gets full regulatory approval.
The company is currently generating zero revenue and will likely generate minimal revenue for the foreseeable future because it will take multiple years to scale up all parts of the nuclear energy supply chain. It has around $900 million in cash on the balance sheet, but that will likely not be enough funds if it begins to actually construct its vertically integrated ambitions.
Oklo has never generated a profit, and its free cash flow has gotten worse every year since going public. This is likely to continue in the years ahead.
However, if Oklo is to succeed with its ambitious plans over the next decade, there is likely a huge opportunity for the business in electricity production for AI data centers, which could push Oklo’s revenue into the billions at scale. The only question is whether Oklo will be able to scale its reactor business in time to capture demand for AI, which is growing by the quarter. 2030 is a long way out in the AI race.
