Private funding for nuclear energy startups has hit an unprecedented level this year, with more than $6 billion raised by fission and fusion companies, according to Crunchbase data. That far exceeds any prior year, including last year's record. The surge is driven by expectations of soaring electricity demand from artificial intelligence data centers.
The biggest deals include $1 billion for Massachusetts-based Commonwealth Fusion Systems and $1 billion for Valar Atomics, a developer of grid-independent reactors. However, the public market has turned bearish. Several nuclear companies that went public in the past six months at valuations above $1 billion have seen their shares drop significantly. X-energy, which debuted at a $12 billion valuation, has lost about half its value. Standard Nuclear and Deep Fission are also trading below their peaks, and Oklo is down about two-thirds from its high point a year ago.
The report suggests the share price declines may reflect either reduced optimism about nuclear startup feasibility or a correction from overvalued levels. Public backlash against massive data center buildouts has added to investor caution. Additionally, next-generation nuclear power faces long-standing hurdles: high capital costs, lengthy licensing and approval processes, and fusion that has yet to come online.
Despite these challenges, many projects are moving forward. Multiple companies working on small modular reactors and microreactors have projects underway in Texas, Idaho, Utah, and Tennessee, per the U.S. Energy Information Administration. The recent influx of capital from IPOs and venture rounds gives startups the runway to continue development.