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

Oklo Inc OKLO shares are trading higher Wednesday. The Sam Altman-backed nuclear startup announced a long-term agreement to provide advanced nuclear power for an AI, cloud and data center provider.

What Happened: Oklo on Wednesday said it signed a non-binding Master Power Agreement with Switch to deploy 12 gigawatts of Oklo Aurora powerhouse projects through 2044. Oklo noted that the agreement represents one of the largest corporate clean power agreements ever signed.

Under the agreement, Oklo will build and operate powerhouses, providing power to Switch across the U.S. through a series of power purchase agreements. Oklo expects the agreement to help position the company to scale in response to growing demand pipeline.

“We are excited to collaborate with Switch on this historic agreement. Rob Roy and the Switch team share the vision we have for nuclear energy’s role in powering artificial intelligence and providing the world with energy abundance,” said Jacob DeWitte, co-founder and CEO of Oklo.

“Oklo expects to benefit enormously from Switch’s record of turning visions into reality. The lifespan of this Master Agreement will allow us to iterate and evolve with Switch, from development to deployment to scaling.”

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The master agreement establishes a framework for collaboration between the two companies. Oklo noted that it expects individual binding agreements to be finalized as project milestones are reached.

“We believe that working with Switch will not only accelerate our early powerhouses but also accelerate our ability to scale by demonstrating customer demand for decades to come,” DeWitte added.

Oklo went public in May through a SPAC merger with Altman’s AltC Acquisition Corp. Oklo shares are up more than 200% over the past three months, driven by increased optimism around nuclear after multiple big tech companies signed deals with nuclear power startups to help keep up with rising energy demands of data centers.

OKLO Price Action: Oklo shares were up 13.2% at $21.62 at the time of publication Wednesday, according to Benzinga Pro.

Photo: courtesy of Oklo.