Oklo, which is developing easily deployable nuclear reactors, has announced the resignation of Sam Altman as chair of its board. / Photo: facebook.com/okloinc
Quotes on Oklo, a nuclear startup, soared almost 15% over the last two trading days. The trigger was the announcement that Sam Altman, who also heads OpenAI, would step down as chair of the Oklo board. Meanwhile, yesterday, the investment bank HC Wainwright & Co initiated coverage of Oklo with a “buy” rating.
Details
Oklo advanced nearly 15% over the last two days, April 22 and April 23, to $23.37 per share before giving back some of the gains in premarket trading today, April 24, dipping just over 2% in the first minutes.
On Tuesday, the company announced that cofounder Sam Altman, also the CEO of OpenAI (which developed ChatGPT), would step down as chair of the board. With Oklo exploring strategic partnerships with players in the AI space, among others, now is “the right time to step down,” Altman was quoted as saying in the press release. Oklo COO and cofounder Caroline Cochran “alluded to the potential for collaboration with OpenAI,” Barron’s reports. Insider Monkey notes that Altman’s departure is crucial in boosting Oklo’s partnerships and avoiding conflicts of interest.
The following day, HC Wainwright & Co initiated coverage of Oklo with a “buy” rating and a target price of $55 per share, according to Yahoo Finance. This is 2.4 times the current market price.
According to MarketWatch, out of the eight analysts covering Oklo, six have “buy” recommendations, while two rate it a “hold.” Their average target price of $46.83 per share implies upside of almost 100%.
About Oklo
Altman has helped guide Oklo’s development since its inception, the company notes. In 2024, he helped it to go public through a merger with a SPAC, which he also led.
Oklo specializes in building compact fission reactors, which have a lower power output than traditional large nuclear reactors but can be swiftly deployed in response to energy demand, Barron’s notes, adding that the company uses AI to optimize its reactor designs.
Oklo currently has three project sites, according to the official website. It plans to deploy its first Aurora powerhouse by the end of 2027. In April, the U.S. Department of Defense announced that Oklo was one of the eight companies selected for its Advanced Nuclear Power for Installations program, which is working to design, license, build, and operate microreactor nuclear plants on military installations.
For the full-year 2024, Oklo posted a net loss of $73.6 million, almost 2.3 times the previous-year amount. “Taken out of context, the numbers might seem like reason for concern. But the company has yet to begin producing revenue. It says it aims to produce commercial power before the end of the decade,” Barron’s writes.