"Given the string of investments, it seems reasonable to ask whether the nuclear world is in a bubble. Investment in the technology has tracked closely with the data center boom. AI requires tremendous amounts of electricity, and tech companies and data center developers have been rushing to secure supplies from sources ranging from nuclear fission to supersonic jet engines. As long as tech companies' power demands continue to grow, interest in nuclear is likely to remain strong."
"But there might be a winnowing of the field in the next year or two if startups don't deliver on their promises, many of which revolve around starting their first reactor next year. Some startups might be able to buy some time after that. First-of-a-kind reactors can be built by hand, but many nuclear startups are predicated on the idea that mass manufacturing will make fission cost-competitive. They might succeed at reaching criticality but stumble when they try to replicate their designs."
Recent raises include Radiant Nuclear securing more than $300 million, Last Energy $100 million, X-energy $700 million, and Aalo Atomics $100 million. Investment activity has tracked closely with the data center and AI-driven demand for large amounts of electricity. Tech companies and data center developers are seeking power supplies from options including nuclear fission. Continued growth in tech power demand will likely sustain interest in nuclear, but many startups face near-term delivery deadlines for first reactors. Mass manufacturing promises cost competitiveness, yet startups might reach criticality but struggle to replicate designs at scale. A winnowing of companies is possible if promises go unmet.
Read at TechCrunch
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