Big Tech Bets on Nuclear Startups to Power the AI Boom

A new wave of investment is pushing nuclear energy to the forefront of the artificial intelligence era, with major technology firms backing startups that promise to deliver vast amounts of carbon-free power. Nvidia (Zorrox: NVIDIA.) and Google (Zorrox: GOOGLE.) are among the backers of Commonwealth Fusion Systems, a U.S. nuclear startup that recently raised nearly $900 million to advance its fusion technology. The move highlights how AI’s soaring energy demands are accelerating corporate bets on unconventional energy solutions.

Fusion Startups Draw Big Tech Capital

Commonwealth Fusion Systems aims to deploy its Sparc demonstration machine and build a commercial fusion plant in Virginia in the coming decade. Google has already signed a power purchase agreement for 200 megawatts once the plant is operational, potentially in the early 2030s. While fusion remains unproven at scale, the size of the investment underscores the belief among AI firms that traditional grids and renewables alone will not be able to meet the exponential power consumption tied to data infrastructure. Nvidia (Zorrox: NVIDIA.) has emerged as both a beneficiary of AI’s growth and an investor in its long-term energy solutions, linking chip demand directly to the energy transition.

Small Modular Reactors Offer a Faster Path

Alongside fusion, small modular reactors (SMRs) are gaining traction as nearer-term solutions. Alphabet’s Google (Zorrox: GOOGLE.) has partnered with Kairos Power and the Tennessee Valley Authority to build Hermes 2, a small modular reactor slated to come online by 2030. The plant will supply 50 megawatts to Google data centers, marking the first commercial use of a Generation IV reactor in the U.S. Similar talks are under way at Microsoft (Zorrox: MSFT) and Amazon (Zorrox: AMAZON.) as companies race to secure carbon-free baseload power for their expanding AI workloads.

Policy and Regulatory Tailwinds

The U.S. federal government is accelerating licensing and regulatory frameworks for advanced nuclear technologies, a move that complements corporate investment flows. Policymakers from both parties have endorsed nuclear as a critical component of the AI-driven economy, with projections that artificial intelligence could consume as much as 9% of U.S. electricity by 2030. Yet critics argue that nuclear’s waste and safety challenges must be addressed, warning that enthusiasm could outpace practical risk management.

Nuclear Becomes the Strategic Backbone of AI

For AI firms, the pivot to nuclear is less about experimentation and more about necessity. Data centers running generative AI models are consuming multiples more electricity than traditional operations, pushing companies to lock in long-term baseload supply. SMRs provide scalability and speed, while fusion offers the prospect of virtually unlimited clean power. Together, they represent the energy equation behind the next decade of AI growth.

Tips for Traders

• Watch Nvidia (Zorrox: NVIDIA.) and Google (Zorrox: GOOGLE.) as their capital commitments to nuclear startups align with long-term AI infrastructure demand.

• Track Microsoft (Zorrox: MSFT) and Amazon (Zorrox: AMAZON.) for additional nuclear partnerships, which could reshape valuations tied to energy security.

• Follow federal licensing and policy developments, as regulatory momentum can accelerate nuclear timelines.

• Monitor public sentiment and environmental opposition, as pushback could delay key projects.

• Position around nuclear energy suppliers and AI equities, where convergence of the two sectors may drive long-term multiples.