Nuclear Fission Startups: Backed by Big Tech - Innovation Spotlight

The Rising Demand for Electricity and the Nuclear Renaissance

Demand for electrical power in the United States is experiencing a significant increase, driven by the rapid expansion of artificial intelligence. This surge follows a period of near stagnation in growth.

Consequently, major technology corporations are actively working to secure sufficient power generation capacity to support their growing data center infrastructure.

Nuclear Fission as a Solution

Many of these companies are now focusing on nuclear fission as a viable energy source. This power generation method is witnessing a revival after years of declining investment and plant decommissioning.

It’s important to note the distinction between fission – the process utilized in all currently operational nuclear power plants – and nuclear fusion, an experimental technology that, despite attracting substantial funding, has yet to achieve net energy gain.

A key advantage of fission for tech companies is its ability to provide a consistent and reliable power supply. This 24/7 availability allows data centers to operate computing processes whenever needed.

The Promise of Small Modular Reactors (SMRs)

Beyond reliability, the appeal of nuclear energy is also fueled by advancements in reactor technology. Newer designs aim to address the limitations of traditional nuclear power plants.

Traditional plants typically feature large reactors capable of generating over 1 gigawatt of electricity. In contrast, Small Modular Reactors (SMRs) utilize multiple, smaller modules deployed in combination to accommodate varying power requirements.

The strategy behind SMRs involves leveraging mass manufacturing techniques to reduce production costs. However, as of yet, no SMR has been constructed within the United States.

Big Tech Investment in Nuclear Startups

Despite this, prominent tech giants – including Amazon, Google, Meta, and Microsoft – are actively engaging with the nuclear sector.

Their involvement takes the form of power purchase agreements with nuclear startups, direct investments in these companies, and often, a combination of both.

Big Tech Backed Nuclear Fission Startups

• Amazon
• Google
• Meta
• Microsoft

These companies are positioning themselves to benefit from the resurgence of nuclear fission as a critical component of the future energy landscape.

Kairos Power

A significant endorsement for Kairos Power came from Google, who committed to purchasing approximately 500 megawatts of electricity by the year 2035.

The initial reactor from this innovative company is projected to begin operations around 2030.

Reactor Technology

Kairos Power’s small modular reactors utilize molten fluoride salt as both a coolant and a medium for transferring heat to a steam turbine.

Due to the salt’s elevated boiling point, the coolant isn't required to be maintained under substantial pressure, a feature designed to enhance operational safety.

These reactors employ fuel pebbles encased in robust carbon and ceramic layers, intended to provide resilience even in the event of a meltdown scenario.

Funding and Approvals

The startup, headquartered in Alameda, has been awarded $629 million in funding from the U.S. government.

This includes a substantial $303 million contribution from the Department of Energy.

In November 2024, Kairos Power secured approval from the U.S. Nuclear Regulatory Commission to initiate construction of two reactors located in Tennessee.

These test units, with a capacity of 35 megawatts, will be smaller in scale than the company’s planned commercial reactors.

Commercial reactors are anticipated to produce 75 megawatts of power each.

Oklo

Oklo represents a further Small Modular Reactor (SMR) enterprise focused on providing power to data centers. This focus is unsurprising considering the company received backing from Sam Altman, CEO of OpenAI, who also facilitated Oklo’s public listing through a reverse merger with his special purpose acquisition vehicle, AltC, in July 2023.

Altman held the position of chairman at Oklo until April, at which point he relinquished the role as OpenAI initiated discussions with Oklo regarding a potential energy supply agreement.

Previous investors in the startup include DCVC, Draper Associates, and Mithril Capital Management, led by Peter Thiel.

Reactor Technology and Challenges

Oklo’s reactor design utilizes liquid metal for cooling and is founded upon an existing blueprint developed by the U.S. Department of Energy. This design aims to minimize the volume of nuclear waste generated during standard operational procedures.

However, Oklo’s development has encountered obstacles. Their initial application for a license was rejected in January 2022.

The company has stated its intention to resubmit the application in 2025.

Future Prospects

Despite the licensing setback, Oklo has secured a contract to provide 12 gigawatts of power to data center operator Switch by the year 2044.

This agreement demonstrates continued confidence in Oklo’s ability to deliver nuclear energy solutions to the growing demands of the data center industry.

Saltfoss

Saltfoss, initially operating under the name Seaborg, shares a similar ambition with Kairos – the development of Small Modular Reactors (SMRs) utilizing molten salt for cooling. However, Saltfoss distinguishes itself through a unique deployment strategy.

Instead of land-based installations, the company proposes housing two to eight SMR units on a marine vessel, effectively creating a mobile power plant referred to as a Power Barge.

Funding and Partnerships

To date, Saltfoss has secured approximately $60 million in funding. This includes a recent $6 million seed round that attracted investment from prominent figures such as Bill Gates, Peter Thiel, and David Helgason, the co-founder of Unity, as reported by PitchBook.

A key partnership has been established with Samsung Heavy Industries. This collaboration will focus on both the construction of the specialized ships and the fabrication of the Saltfoss-engineered reactors.

The company’s approach represents an innovative pathway for deploying advanced nuclear technology, offering potential advantages in terms of scalability and logistical flexibility.

TerraPower

TerraPower, established by Bill Gates, is currently developing an advanced reactor design known as Natrium. This innovative reactor utilizes liquid sodium for cooling and incorporates molten salt technology for energy storage.

Construction of the inaugural power plant commenced in June 2024, located in Wyoming. The Natrium reactor is engineered to produce 345 megawatts of electrical power.

While this output is less than that of some contemporary nuclear facilities, it exceeds the capacity of many Small Modular Reactors (SMRs) currently in development.

Molten Salt Energy Storage

A key feature of the Natrium design is its integrated molten salt heat storage capability. Nuclear reactors function most efficiently with consistent operation.

Consequently, the Natrium reactor can maintain nuclear fission even during periods of reduced electricity demand. Excess energy generated is then retained as thermal energy within a molten salt reservoir.

This stored heat can subsequently be utilized to generate electricity when demand increases, providing a flexible and reliable power source.

Investment and Backing

TerraPower has attracted significant investment from a diverse group of firms. These include:

• Gates’ Cascade Investment fund
• Khosla Ventures
• CRV
• ArcelorMittal

These investments demonstrate confidence in TerraPower’s technology and its potential to contribute to the future of energy production. The company is positioned as a leader in advanced nuclear reactor design.

Natrium represents a significant step towards more efficient and adaptable nuclear power generation.

X-Energy

Last year, X-Energy secured a significant $700 million Series C-1 funding round, with Amazon’s Climate Pledge Fund taking the lead. Concurrently, the SMR startup revealed two development agreements.

These agreements outline plans for the installation of 300 megawatts of novel nuclear power generation capabilities in both the Pacific Northwest and Virginia.

X-Energy’s high-temperature, gas-cooled reactor technology represents a departure from current preferences in the U.S. and Europe. Other designs are favored in those regions.

Reactor Design and Functionality

The company’s Xe-100 reactor is projected to produce 80 megawatts of electrical power. A key feature is the use of helium gas.

This gas circulates through the reactor core, interacting with approximately 200,000 fuel elements shaped like billiard balls – referred to as “pebbles”.

As the helium absorbs heat, it drives a steam turbine, ultimately generating electricity. This process is central to the reactor’s operation.