Tech giant Meta is making an unprecedented move into the nuclear energy sector, not by simply buying power from existing plants, but by directly financing the production of fuel for next-generation reactors. This aggressive investment in Oklo, a startup pioneering advanced nuclear designs, marks a significant shift in how tech companies approach energy sourcing.
The Changing Landscape of Nuclear Investment
For years, tech companies have approached nuclear energy in two primary ways: purchasing power from established plants (Microsoft’s deal with Three Mile Island) or betting on long-term reactor startups (Amazon’s stake in X-energy). Meta had previously taken a conservative approach, only buying power from an existing Illinois plant. Now, the company is breaking new ground by providing upfront cash to Oklo to secure fuel for its reactors, a move no other hyperscaler has made before.
This investment is part of a broader nuclear push from Meta, which also includes deals with Vistra and TerraPower, collectively representing “the largest such investment in nuclear energy in US history,” according to Third Way. The timing is critical; rising nuclear fuel prices, coupled with a US ban on Russian uranium imports, are creating a market opportunity for domestic production.
Oklo’s Unique Approach and the HALEU Challenge
Oklo’s reactors rely on high-assay low-enriched uranium (HALEU), a more potent fuel that traditional reactors don’t use. Securing HALEU has been a major obstacle, as commercial vendors were previously limited to Russia and China. Meta’s financing will help Oklo overcome this challenge by accelerating domestic production. The deal is described by Oklo’s CEO as “one of the biggest deals around the nuclear space as a whole.”
The company is also exploring the use of plutonium leftover from Cold War-era bomb construction, further diversifying its fuel sources. This move is unconventional; as MIT researcher Koroush Shirvan points out, no other customer is known to directly purchase fuel for reactors in this manner.
Why This Matters: Beyond Green Energy
This isn’t just about reducing carbon emissions; it’s about energy independence and the future of data center power. Data centers require massive, reliable energy sources, and nuclear provides a stable baseload supply. The US has historically led in nuclear technology, but the industry has stagnated in recent decades with skyrocketing costs and delayed projects.
The move by Meta signals a renewed interest in advanced nuclear designs—smaller, more efficient reactors using alternative coolants (sodium, molten salt, high-temperature gas). These designs promise lower costs and faster deployment compared to traditional, large-scale reactors.
Regulatory Hurdles and Future Outlook
Despite the optimism, Oklo faces significant regulatory hurdles. The Nuclear Regulatory Commission (NRC) has been highly critical of past applications, with one anonymous official calling the company “the worst applicant the NRC has ever had.” Oklo has yet to resubmit its application, and it remains to be seen whether it can overcome these challenges.
Nevertheless, industry analysts like Chris Gadomski at BloombergNEF believe this marks a turning point. “It’s about time,” Gadomski says, “Either way, they’re a company to pay attention to.” Meta’s investment validates the potential of advanced nuclear and could reshape the energy landscape for tech companies in the years to come.
This strategic move by Meta underscores the growing recognition that nuclear power is not just an alternative energy source, but a critical component of future energy infrastructure, particularly for data-intensive operations.
