OKLO is a speculative play for nuclear power, which badly needed in the USA to power all the data centers and also to ensure that we do not have an energy crisis in the AI arms race.
It has a $9.5Bn market cap, with the earliest meaningful revenue of $1Bn in 2031, so it's a lot to pay for revenues 5-6 years in advance.
The other big problem is compliance/regulations, which is always going to be an issue with nuclear power given its rather checkered history, and it could get a lot worse if the government changes in 2028, conditions could get a lot stricter, rules changed and so on.
I’ve met senior folks from the company at a seminar, and I came away very impressed with management, and I do believe that given the power shortages for data centers nuclear is the right way to go. And with the Iran war again focusing on energy independence, I can see the government pushing nuclear hard. Appointing the CEO to the President’s council is good.
I own Vistra and Rolls Royce - their nuclear segments are also forecasted to grow, keeping some investments in nuclear that way.
Meta will likely prepay for OKLO’s project at the Pike County 1.2 GW campus, so I don’t see funding being a major issue, but given the nature of the beast, cost and time overruns for power projects are normal, which means we definitely have some dilution risk as well.
Strictly a small speculative position, even with the price drop from $194, bad news could easily lead to a 50% decline.
Nebius' masterly execution as an integrated neocloud player allows it to borrow at very cheap interest rates with very little shareholder dilution.
Nebius is executing brilliantly as an integrated neocloud player with tremendous reach, value addition and strong pricing power.
