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SANTA CLARA, Calif. - Oklo Inc. (NYSE: OKLO), a $2.96 billion market cap company specializing in advanced nuclear power and nuclear fuel recycling, has announced a partnership with RPower, a provider of onsite power solutions, to create a phased power strategy for data centers. The announcement comes as Oklo's stock has shown remarkable momentum, delivering a 172.86% return over the past six months. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value estimate. The memorandum of understanding outlines a plan that initially utilizes RPower's natural gas generators, with a future transition to Oklo's Aurora powerhouses for emissions-free energy.
The phased approach is designed to deliver reliable power immediately while establishing a path to sustainable energy. Initially, RPower's generators will meet urgent power requirements, with deployment expected within 24 months based on site conditions. Oklo's Aurora powerhouses will be incorporated as they become available, ultimately becoming the primary energy source and relegating natural gas generators to backup roles.
This collaboration seeks to merge Oklo's nuclear technology with RPower's experience in power systems to offer data centers a comprehensive solution. The strategy aims to address immediate power needs and support long-term energy sustainability goals. InvestingPro data reveals that Oklo maintains a strong financial position with a current ratio of 48.45, indicating robust liquidity to support its strategic initiatives. Subscribers to InvestingPro can access 15+ additional exclusive insights about Oklo's financial health and growth prospects.
Oklo's CEO, Jacob DeWitte, expressed enthusiasm for the collaboration, citing a growing customer pipeline and an order book of 14 gigawatts. RPower's COO, Jamie Smith, also conveyed excitement for the model's potential to bridge current energy demands with future clean solutions.
Oklo has made strides in the advanced nuclear power plant sector, receiving a site use permit from the U.S. Department of Energy and submitting a license application to the U.S. Nuclear Regulatory Commission. RPower, established in 2021, offers prime and backup power generation, and is backed by I Squared Capital.
The partnership's forward-looking statements include expectations for the memorandum's timing, goals, and benefits. However, these statements are subject to risks and uncertainties, including regulatory challenges and the need for financing to construct plants. Analyst targets for Oklo range from $26 to $31, reflecting mixed sentiment about the company's prospects. For comprehensive analysis including detailed financial metrics and expert insights, investors can access Oklo's full Pro Research Report, available exclusively on InvestingPro.
This announcement is based on a press release statement and reflects the companies' current intentions for developing a clean energy strategy for data centers.
In other recent news, Oklo Inc. has seen a series of significant developments. The company's top executives, including CEO Jacob DeWitte and CFO R. Craig Bealmear, have received salary and bonus increases, reflecting the company's confidence in its leadership team. Oklo has also announced plans to acquire Atomic Alchemy Inc., which recently signed a Memorandum of Understanding with Zeno Power Systems, Inc., aiming to enhance the supply chain for critical isotopes used in clean energy production.
Furthermore, Oklo has entered a non-binding Master Power Agreement with Switch (NYSE:SWCH), a leader in AI, cloud, and enterprise data center services. This agreement outlines the provision of 12 gigawatts of power from Oklo's Aurora powerhouses through 2044, marking a major step in corporate clean power arrangements.
On the analyst front, Wedbush has given Oklo an Outperform rating, reflecting optimism about the company's unique business model. However, Citi has reiterated its Neutral stance on shares of Oklo, following the company's recent operational results report. These are the latest developments in Oklo Inc.'s operations.
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