The Nuclear Energy Race: Why AI Boom is Reshaping Small Reactor Competition

With artificial intelligence infrastructure consuming unprecedented amounts of electricity, the spotlight has turned to nuclear power as a potential solution. Two companies stand at the forefront of this revolution: NuScale Power (NYSE: SMR) and Oklo (NYSE: OKLO), each pursuing different pathways to dominate the emerging small modular reactor market.

The Regulatory Edge: NuScale’s Current Advantage

NuScale Power has already crossed a critical milestone that separates it from competitors. As the only U.S. company to secure Nuclear Regulatory Commission approval for a small reactor design, NuScale has transformed regulatory clearance into tangible business activity. The company generated $8.2 million in revenue during Q3 2025 through licensing and engineering services—a modest but significant marker distinguishing it from purely speculative plays.

However, this progress comes at a cost. NuScale is burning through cash at an alarming rate relative to its current revenue stream. Year-to-date performance tells a cautionary tale: the stock has declined over 17% as of late December, trading dangerously close to 52-week lows. Investors eyeing this dip should understand they’re betting on future profitability, not current financial health.

The Altman Factor: Oklo’s Speculative Appeal

By contrast, Oklo remains a pre-revenue company with zero current earnings, yet commands a market valuation exceeding $12 billion. This valuation gap reflects the confidence surrounding Sam Altman’s involvement as a backer. Altman’s endorsement has transformed Oklo from an obscure startup into a household name within investment circles.

Oklo’s next-generation fission technology presents genuinely innovative potential, but innovation alone doesn’t navigate regulatory hurdles. The company still awaits NRC approval for its small modular reactor design, meaning commercialization remains years away—with 2027 representing the earliest realistic revenue timeline.

The market has rewarded this narrative generously: Oklo stock surged more than 262% year-to-date through late December, despite the absence of any revenue whatsoever.

Evaluating Risk and Timeline

These two investments appeal to fundamentally different investor profiles:

Oklo represents the high-risk, potentially high-reward thesis. Success depends on regulatory approval, successful deployment, and market adoption—each carrying substantial execution risk. Yet if the company delivers, early shareholders could capture outsized returns.

NuScale, conversely, offers the slower path forward. It has de-risked the regulatory component but now faces the challenge of scaling profitably. The company’s cash burn relative to revenue suggests the path to sustainable operations remains long and capital-intensive.

The AI data center boom creates genuine demand for both companies’ solutions. The critical question isn’t whether demand exists, but which company can translate that demand into profitable growth first—and which investors have the risk tolerance to wait for that outcome.

For those seeking exposure to nuclear energy’s AI-driven renaissance, understanding these fundamental differences matters more than choosing based on recent stock momentum.