SMR Divergence: NuScale Power and Oklo Pursue Distinct Nuclear Strategies

The race to deploy small modular reactors (SMRs) has highlighted a strategic divide between two of the sector's most prominent players, NuScale Power (SMR) and Oklo (OKLO). Both companies are operating in a pre-revenue phase, yet their market valuations and target demographics differ significantly. Oklo currently commands a valuation premium, with a market capitalization of approximately $11 billion, nearly triple that of NuScale Power, which sits below $4 billion. This premium is largely attributed to the influence of Chairman Sam Altman, whose leadership in the AI space has aligned Oklo with the surging energy demands of high-compute data centers. The companies' hardware reflects these differing goals. Oklo's reactors are designed for smaller scales, ranging from 15 to 50 megawatts, making them ideal for direct integration into individual data center sites. In contrast, NuScale Power utilizes larger 77-megawatt designs intended for utility-scale deployments, such as its 6-gigawatt project involving TVA and ENTRA1. As AI applications continue to drive energy demand—with data centers expected to double their needs by 2030—Oklo's strategy of targeting the sub-gigawatt market has already attracted significant interest, with 80% of its customer inquiries originating from data center operators. NuScale remains a bet on the broader modernization of the electrical grid.