Shares of Oklo Inc. (OKLO) tumbled 5.01% in pre-market trading on Friday, following the company's announcement of a $400 million public offering. The nuclear technology startup, backed by OpenAI CEO Sam Altman, priced 6,666,667 shares at $60 each, representing a 6.9% discount to the previous day's closing price.

The sharp decline comes on the heels of a significant rally earlier in the week, where Oklo's stock soared nearly 30% on Wednesday after the company moved closer to securing a power purchase agreement with the U.S. Air Force. However, the enthusiasm was short-lived as investors reacted to the dilutive effects of the new share issuance.

Oklo stated that it intends to use the proceeds from the offering for general corporate purposes, working capital, capital expenditures, and potential future investments. While the capital raise may strengthen the company's financial position, the market's immediate reaction reflects concerns about the impact on share value. The offering, led by Goldman Sachs and BofA Securities, is expected to close on June 16, 2025, subject to customary conditions.