By Mackenzie Tatananni

Oklo said Tuesday that OpenAI CEO Sam Altman was stepping down as chairman of its board and indicated a partnership with the artificial-intelligence company could be on the horizon.

Altman, who has served as chairman since 2015, also headed the special purpose acquisition company that took Oklo public last May. CEO and co-founder Jacob DeWitte will replace Altman as chairman, Oklo said.

While the nuclear energy start-up didn't provide a reason for Altman's exit, chief operating officer and co-founder Caroline Cochran alluded to the potential for collaboration with OpenAI.

"We are excited to continue working with [Altman] to bring scalable, clean energy to the AI sector and beyond, and to continue to explore strategic partnerships with leading AI companies, including potentially with OpenAI," Cochran said in a statement.

Oklo uses AI to help optimize the design of its nuclear reactors. Its shares have also risen and fallen on AI news because investors regard nuclear power as an answer to data centers' enormous demand for energy.

The company is focused on building so-called compact fast reactors, which have a lower power output than traditional large reactors but are faster to construct. They are usually deployed as needed in response to increasing energy demand.

Underpinning Oklo's approach is the idea of challenging conventions, especially in terms of deploying nuclear power. In an interview with Barron's, DeWitte explained how the company uses technology that is grounded in science, eliminating the need for extensive and costly research and development.

"What didn't work very well was this largely centralized government-based approach, and we've tried to repeat that cycle over and over again," DeWitte said. "Allowing a more organic, market-driven approach that brings in fresh ideas is really important here."

Oklo aims to have its first Aurora powerhouse up and running by the end of 2027. Last month, the company signed an agreement with Idaho National Laboratory in anticipation of work such as drilling and soil sampling to investigate a reactor site.

Oklo reported a loss of 74 cents a share in 2024, wider than the loss of 47 cents in the previous year. Management said in a filing with the Securities and Exchange Commission that the company will likely incur "significant expenses and continuing financial losses" in the near future.

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.

Partnerships with the Department of Energy and Nuclear Regulatory Commission provide a bedrock of support, DeWitte said.

"When we started this, the idea is of doing a lot of things that we've now done was considered not possible, but almost blasphemous," he said. "You have to engage in pushing things forward."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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April 22, 2025 16:30 ET (20:30 GMT)

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