Oklo Stock Is Surging Wednesday: What's Going On?

Oklo Inc OKLO shares are trading higher Wednesday after the company announced it secured a partnership to supply up to 750 megawatts (MW) of power to U.S. data centers.

What Happened: Oklo said it received Letters of Intent (LOIs) and is partnering with two major data center providers to deliver up to 750 MW of power. The commitments bring Oklo’s customer pipeline up to approximately 2,100 MW.

Oklo, which is backed by OpenAI’s Sam Altman, said it will now work with “one of the fastest-growing data center companies” to deploy powerhouses in select sites. The company has already announced plans for sites in Idaho, Ohio, Texas and Wyoming.

“The strong customer response reflects confidence in Oklo’s clean, reliable, and affordable power solutions. Our approach helps enable customers to scale sustainably with reliable power aligned to their long-term goals,” said Jacob DeWitte, co-founder and CEO of Oklo.

Oklo noted that it makes it easier for customers to adopt nuclear power generation while also creating a steady revenue stream for Oklo by selling power, not power plants.

Oklo shares have rallied in recent weeks as hyperscalers increasingly turn to nuclear power in an effort to keep up with the rising energy demands of AI data centers. Google and Amazon announced small modular reactor (SMR) deals last month, which sparked a rally in several nuclear names.

When DeWitte was asked about the potential for Oklo to sign similar deals last month, he said there was "a lot more to come."

"We're pretty excited about what's to come. So there's a lot more to come, frankly, on the horizon that we're working towards. I think what we are seeing in these announcements are only the tip of the iceberg across the whole industry," DeWitte said in mid-October.

Oklo is scheduled to report third-quarter financial results after the market close on Thursday.

OKLO Price Action: Oklo shares were up 6.86% at $24.12 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Oklo.