Oklo stock tumbles as Financial Times scrutinizes valuation

Investing.com -- Oklo Inc. (NYSE:OKLO) stock fell 13.4% on Wednesday after the Financial Times published an in-depth report examining the nuclear power company’s $20 billion valuation despite having no revenue or operating licenses.

The Silicon Valley-based nuclear technology startup has seen its shares surge more than 500% since the beginning of the year, driven largely by retail investor enthusiasm and connections to the AI power demand narrative. However, the stock has now declined nearly 15% Wednesday and 30% on the week as concerns mount over its valuation.

Oklo, led by the husband-and-wife team of Jacob and Caroline DeWitte, aims to deploy small modular reactors (SMRs) using liquid sodium as a coolant, with plans to deliver commercial power by 2027. The company broke ground on its pilot project in Idaho last month and has positioned itself as a future power supplier for energy-hungry AI data centers.

The Financial Times report highlighted potential political connections benefiting the company, noting that Trump’s energy secretary Chris Wright is a former Oklo board member. The company has been selected for multiple federal programs aimed at fast-tracking small modular reactor construction and nuclear fuel fabrication.

These relationships have drawn criticism from Democratic lawmakers, with Senator Ed Markey expressing concerns about the "appearance of impropriety" regarding the company’s access to specialized reactor fuel and potential transfer of weapons-grade plutonium.

Short sellers have taken notice of Oklo’s lofty valuation, with approximately 13% of the company’s stock currently being borrowed by investors betting against the company. Critics, including nuclear specialist Adam Stein from the Breakthrough Institute, have warned of a potential "bubble" in AI energy startups, according to FT.

Despite the scrutiny, Oklo’s CEO Jacob DeWitte dismissed suggestions of political favoritism as "partisan bickering," FT reports, with DeWitte further noting that Wright had recused himself from decisions regarding the company and that competitors had received similar energy department awards.

Oklo has been one of the most popular pre-revenue stocks that have increasingly garnered investor interest in the market this year, but its valuation concerns have fell under increased scrutiny the past week as U.S. trade concerns and AI bubble worries have once more led to a risk-off trading environment.

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