The video from Forbes highlights how artificial intelligence (AI) is driving a renewed interest and investment in nuclear energy, particularly through advanced small modular reactors. At Alo Atomic’s factory near Austin, Texas, workers are manufacturing thick steel vessels that will house 10-megawatt nuclear fission reactors. These reactors, when combined in groups of five, can power a 50-megawatt turbine, enough electricity to run a large data center or 45,000 homes. Alo’s CEO, Matt Lozac, emphasizes that their reactor design is not theoretical but actively being built, with plans to achieve nuclear criticality by July 4th, 2026, at the Department of Energy’s Idaho National Laboratory.
Achieving criticality means initiating a self-sustaining nuclear fission chain reaction using off-the-shelf nuclear fuel rods, a crucial milestone before producing electricity. However, Alo still faces challenges such as scaling manufacturing, developing a supply chain, securing customers, and obtaining regulatory approval from the Nuclear Regulatory Commission. To support mass production, Alo recently hired Bryson Gentiel, formerly of SpaceX, to help establish a gigafactory potentially spanning up to one million square feet. Lozac is confident that by setting up efficient manufacturing, they can reduce costs and create a breakthrough product akin to what Elon Musk achieved with electric cars and rockets.
The surge in electricity demand, largely driven by the rapid growth of AI and data centers, is a key factor fueling interest in new nuclear technologies. Several startups, including Valor Atomics, Oklo, Kos Power, and X Energy, are competing to develop small, prefabricated reactors that can power data centers or feed into the broader electrical grid. Investment in these ventures has skyrocketed, with over $4 billion poured into new U.S. nuclear startups in 2025 alone, compared to just $500 million in 2020. Despite the high capital requirements, the potential for nuclear power to make a comeback is strong given the growing energy needs.
Alo has raised $136 million to date, with $100 million secured recently from Valor Equity Partners, led by billionaire Antonio Gracias, an early Tesla investor and SpaceX board member. Gracias believes Alo’s vertically integrated manufacturing approach will be a key differentiator, similar to Tesla’s first-principles approach to innovation. While not all startups will succeed, the alignment of market demand, technological progress, and investment suggests a promising future for nuclear energy as a reliable power source for AI-driven infrastructure.
The video also discusses the broader energy landscape, noting that data centers could require up to 250 gigawatts of power within eight years, a demand comparable to the entire electricity consumption of Brazil. Current energy sources like natural gas turbines face supply constraints, coal is unpopular, and renewables like wind and solar cannot provide the consistent 24/7 power data centers need. This gap presents a significant opportunity for advanced nuclear reactors to become a critical part of the energy mix, supporting the AI boom and helping to meet the growing global electricity demand reliably and sustainably.