UBS maintains a neutral rating on Oklo (OKLO) following the company’s announcement of a long-term power purchase agreement with Meta, underscoring cautious optimism amid growing momentum in nuclear microgrid development. The deal marks a strategic milestone for Oklo’s commercial deployment efforts.
- UBS maintains a neutral rating on OKLO following a multi-year power deal with Meta.
- The agreement involves up to 100 megawatts of clean power over 15 years for Meta’s data centers.
- Oklo’s first commercial SMR unit is expected to enter operation in 2027 after NRC licensing.
- Execution risks remain, including regulatory delays and scaling reactor production.
- The deal highlights growing demand for carbon-free baseload power in tech infrastructure.
UBS has reaffirmed its neutral rating on Oklo Inc. (OKLO), citing the company’s recent multi-year power purchase agreement with Meta, a major technology infrastructure player. The agreement, though not disclosed in full financial detail, involves the delivery of clean, carbon-free electricity from Oklo’s advanced small modular reactor (SMR) systems to support Meta’s data center operations. While the specific volume and duration remain confidential, industry analysts estimate the deal could supply up to 100 megawatts of power over a 15-year term, positioning Oklo as a key supplier in the emerging clean energy infrastructure space. The decision to hold OKLO at neutral reflects UBS’s assessment that while the Meta collaboration validates Oklo’s technology and commercialization pathway, the stock’s near-term valuation already incorporates significant growth expectations. UBS analysts note that execution risks—including regulatory approvals, construction timelines, and scaling of reactor production—remain material. The company’s first commercial unit is currently in the final stages of licensing with the U.S. Nuclear Regulatory Commission (NRC), with an anticipated start-up date in 2027. Despite the unchanged rating, the Meta deal has generated increased market interest in Oklo’s growth trajectory, particularly within the clean energy and tech infrastructure sectors. The partnership signals growing confidence in next-generation nuclear power as a viable solution for decarbonizing large-scale digital operations. Investors are closely watching Oklo’s ability to expand its footprint beyond this initial agreement, including potential follow-on deals with other tech firms and utilities. The move underscores a broader trend of tech giants seeking stable, low-carbon energy sources to power AI-driven infrastructure. With data centers consuming an estimated 1% of global electricity and projected to grow by 20% annually, demand for reliable clean baseload power is intensifying. Oklo’s focus on modular, factory-built reactors aligns with this trend, though commercial viability at scale remains a key milestone.