Advanced nuclear systems company Oklo is planning to merge with special purpose acquisition company (SPAC) AltC Acquisition (NYSE:ALCC), according to a release on Tuesday. Perhaps the most interesting facet of this news, however, is the SPAC’s backer. AltC was co-founded by Sam Altman, the CEO of OpenAI — the company behind the highly popular artificial intelligence (AI) chatbot ChatGPT.
What do you need to know about Altman’s latest endeavor?
Well, according to the release, it seems that Altman’s acquisition company has found a suitable business to bring public: Oklo. This advanced fission tech and nuclear fuel recycling company is part of a growing, global trend toward cleaner energy. Nuclear fission startups have skyrocketed in popularity lately, earning interest from tech moguls ranging from Amazon’s (NASDAQ:AMZN) Jeff Bezos to Microsoft’s (NASDAQ:MSFT) Bill Gates.
Altman’s interest in nuclear energy isn’t particularly well-known, but he has actually been invested in Oklo since 2015. The OpenAI CEO apparently believes the firm is the “best positioned player to pursue commercialization of advanced fission energy solutions.”
In the press release, Altman expressed some optimistic sentiment for Oklo as it pertains to ALCC stock shareholders:
“I am thrilled to announce this partnership that provides the opportunity for AltC’s shareholders to become investors in Oklo and fund the first deployment of the Aurora powerhouse […] I have long been interested in the potential that nuclear energy offers to provide clean, reliable, and affordable energy at great scale.”
ALCC Stock Expected to Skyrocket Ahead of Oklo Merger
Despite the promising news, ALCC stock has remained relatively quiet in the face of the upcoming SPAC merger, showing little reaction to the Oklo announcement today. That said, there’s still plenty of reason to hold out hope for the merger.
Oklo represents one of the strongest potential candidates in the nuclear fission startup field. Oklo reactors are considered more streamlined and thus capital-efficient compared to competitors. The company is hoping to build more than 50 power plants, “representing the opportunity for over 700 MWe of clean energy.” Oklo plans for its “emission-free energy production” to go into full swing by 2026 or 2027.
Dr. Jacob Dewitte, co-founder and CEO of Oklo, also shared some promising remarks for the deal to-be:
“Since founding Oklo in 2013, we have made considerable progress in advancing our vision of transforming how fission technologies come to market and meet the urgent need for affordable, reliable, clean energy. Our long-term goal is to build a wide range of advanced fission power plants, including small and large designs and designs that are economically competitive. I am very proud of the team’s accomplishments to date and believe that we can accelerate our ambitious vision in partnership with the team at AltC. AltC supports our mission and brings an extensive commercial network and executive expertise.”
The deal is projected to add up to $500 million in gross capital to help facilitate Oklo’s energy ambitions. The merger is expected to go through either later this year or in early 2024.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
