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An artist rendition of the Oklo Aurora microreactor.

Image credit: Gensler

Oklo, an advanced nuclear fission microreactor startup, announced on Tuesday that it is going public via merger with AltC Acquistion Corp., a special purpose acquisition company co-founded by OpenAI CEO Sam Altman, who is also the chairman of Oklo’s board.

The SPAC will close by early 2024, Oklo co-founder Jake DeWitte told CNBC in a video interview on Friday, and will raise as much as $500 million for the company.

The capital that Oklo raises by going public will go towards ramping up its supply chain and procurement processes and building a pilot scale production facility for its reactor, which it calls Aurora.

Altman best known for his work with artificial intelligence after Microsoft invested billions of dollars in OpenAI and the company’s ChatGPT chatbot caught the public’s imagination late last year. But Altman’s philosophical vision for a better future is dependent on two technologies developing in in parallel: AI and energy.

“My whole view of the world is the future can be radically better and the two things that we really need for that are to lower the cost of energy and lower the cost of intelligence. And if we get those, we’ll be quite surprised about how different and how much better the future is,” Altman told CNBC in a phone conversation on Friday.

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‘I don’t see a way for us to get there without nuclear’

The two prongs of the future Altman envisions are connected: If the use of artificial intelligence scales up in the way Altman sees, it will demand “a lot, lot” of energy, he told CNBC.

Altman met the co-founders of Oklo back in 2013 and recruited them to join Y Combinator, the Silicon Valley start-up shop where Altman was president of from 2014 to 2019. Caroline Cochran and Jacob DeWitte, the co-founders of Oklo, joined Y Combinator in 2014 and Altman went on to lead Oklo’s seed round in 2015, and became Chairman of the Board.

“I’m all-in on energy. I think there’s urgent demand for tons and tons of cheap, safe, clean energy at scale,” Altman told CNBC.

Altman has long promoted the idea that access to energy is a significant determining factor to improving quality of life around the globe.

“The alternative to not having enough energy is that crazy de-growth stuff people talk about. We really don’t want that,” Altman told CNBC, referring to the philosophy that restricting production, consumption and energy use is a way to conserve natural resources. “I think it’s insane and pretty immoral when people start calling for that.”

OpenAI CEO Sam Altman addresses a speech during a meeting, at the Station F in Paris on May 26, 2023. Altman, the boss of OpenAI, the firm behind the massively popular ChatGPT bot, said on May 26, 2023, in Paris that his firm’s technology would not destroy the job market as he sought to calm fears about the march of artificial intelligence (AI).

Joel Saget | Afp | Getty Images

In particular, Altman believes nuclear energy as necessary to meet demand while moving away from burning fossil fuels, which cause global warming. “I don’t see a way for us to get there without nuclear. I mean, maybe we could get there just with solar and storage,” Altman told CNBC. “But from my vantage point, I feel like this is the most likely and the best way to get there.”

Altman is betting on slightly different nuclear projects.

Oklo is working to commercialize nuclear fission, which is the reaction that powers all of existing nuclear power plants, but using much smaller reactors. He’s also invested $375 million into Helion, which is one of a burgeoning industry of startups working to prove out and commercialize nuclear fusion, which is the way the sun generates energy and creates no long-lived nuclear waste, but has never been replicated and scaled on earth.

Altman says fusion, if it can be commercialized as Helion envisions, and Oklo, with its smaller, cheaper nuclear reactors, can co-exist. The need for clean, cheap energy “is so vast” that having multiple source of reliable, clean nuclear energy is a good thing, Altman says. Also, because Oklo reactors are going to be much smaller than Helion power plants, they will likely serve different kinds of customers.

Fundamentally, “the world is just so energy limited, and it’s such an energy deficit, we need all of it,” Altman told CNBC.

Deployment plans and hurdles

Oklo was founded in 2013 with the vision to re-imagine commercial nuclear energy. Conventional nuclear reactors are expensive construction projects that take a long time. The Vogtle plant in Georgia are the latest of this kind of conventional nuclear reactor to be constructed in the U.S., and its budget and schedule overruns have become infamous.

Oklo plans to make much smaller nuclear reactors that can operate with fresh or recycled fuel for as long as a decade before they need to be refueled. Oklo power reactors will produce consistent levels of energy, as opposed to the intermittent sources of power generated by wind and solar, and Oklo is positioning itself to be a source of power for data centers, utilities, defense facilities, remote communities, factories, and industrial sites.

“Oklo has extremely strong customer interest. There’s no lack of desire or need for this,” Altman told CNBC.

Also, Oklo plans to operate the reactors itself and sell the power to customers, making it easier for customers to use nuclear energy without having to take on the responsibility of operating a nuclear reactor.

Oklo is still in the relatively early stages. In May, Oklo signed an agreement with the Southern Ohio Diversification Initiative to deploy two commercial plants in Southern Ohio, and it’s aiming to have them online by 2030. 

Oklo also has received approvals from the U.S. Department of Energy to build a plant at the Idaho National Laboratory by 2027. For that reactor, Oklo has already gotten approval from INL to use some of its spent nuclear fuel. The company has also begun the process of applying for necessary approvals to construct a fuel-recycling facility so that Oklo can put what would otherwise be considered “used” fuel into its advanced reactor design.

An artist rendering of the Oklo Aurora reactor.

Artist rendering by Gensler, image courtesy Oklo.

But Oklo has also faced some setbacks: In Jan. 2022, The Nuclear Regulatory Commission, which is the nation’s top nuclear regulatory agency, denied its first application to build and operate its advanced nuclear reactor. The NRC cited information gaps in the application, but Oklo is confident that it will be able to resolve the issue.

“We’ve made a lot of progress with the NRC dating back to 2016,” DeWitte told CNBC. “In many ways, a lot of the licensing details around this are focused more on what I call structural and kind of procedural elements.”

If Oklo does make it past the regulatory process, it has the potential to make nuclear energy much more affordable than it is now, which is part of what makes Altman interested.

“One of the things that I’m so excited about the Oklo design is that I think the economics can be very, very different,” Altman said.

Some of that is the reactor’s smaller size, but some of it is how the Oklo reactors have been designed.

“We made intentional design decisions to build on demonstrated technology that also uses parts, major parts and components that are used in other industries,” DeWitte told CNBC. “So that means we get to buy into an already established, effectively economy of scale production supply chain.”

How nuclear power is changing

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How Elon Musk’s plan to slash government agencies and regulation may benefit his empire

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How Elon Musk’s plan to slash government agencies and regulation may benefit his empire

Elon Musk’s business empire is sprawling. It includes electric vehicle maker Tesla, social media company X, artificial intelligence startup xAI, computer interface company Neuralink, tunneling venture Boring Company and aerospace firm SpaceX. 

Some of his ventures already benefit tremendously from federal contracts. SpaceX has received more than $19 billion from contracts with the federal government, according to research from FedScout. Under a second Trump presidency, more lucrative contracts could come its way. SpaceX is on track to take in billions of dollars annually from prime contracts with the federal government for years to come, according to FedScout CEO Geoff Orazem.

Musk, who has frequently blamed the government for stifling innovation, could also push for less regulation of his businesses. Earlier this month, Musk and former Republican presidential candidate Vivek Ramaswamy were tapped by Trump to lead a government efficiency group called the Department of Government Efficiency, or DOGE.

In a recent commentary piece in the Wall Street Journal, Musk and Ramaswamy wrote that DOGE will “pursue three major kinds of reform: regulatory rescissions, administrative reductions and cost savings.” They went on to say that many existing federal regulations were never passed by Congress and should therefore be nullified, which President-elect Trump could accomplish through executive action. Musk and Ramaswamy also championed the large-scale auditing of agencies, calling out the Pentagon for failing its seventh consecutive audit. 

“The number one way Elon Musk and his companies would benefit from a Trump administration is through deregulation and defanging, you know, giving fewer resources to federal agencies tasked with oversight of him and his businesses,” says CNBC technology reporter Lora Kolodny.

To learn how else Elon Musk and his companies may benefit from having the ear of the president-elect watch the video.

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Why X’s new terms of service are driving some users to leave Elon Musk’s platform

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Why X's new terms of service are driving some users to leave Elon Musk's platform

Elon Musk attends the America First Policy Institute gala at Mar-A-Lago in Palm Beach, Florida, Nov. 14, 2024.

Carlos Barria | Reuters

X’s new terms of service, which took effect Nov. 15, are driving some users off Elon Musk’s microblogging platform. 

The new terms include expansive permissions requiring users to allow the company to use their data to train X’s artificial intelligence models while also making users liable for as much as $15,000 in damages if they use the platform too much. 

The terms are prompting some longtime users of the service, both celebrities and everyday people, to post that they are taking their content to other platforms. 

“With the recent and upcoming changes to the terms of service — and the return of volatile figures — I find myself at a crossroads, facing a direction I can no longer fully support,” actress Gabrielle Union posted on X the same day the new terms took effect, while announcing she would be leaving the platform.

“I’m going to start winding down my Twitter account,” a user with the handle @mplsFietser said in a post. “The changes to the terms of service are the final nail in the coffin for me.”

It’s unclear just how many users have left X due specifically to the company’s new terms of service, but since the start of November, many social media users have flocked to Bluesky, a microblogging startup whose origins stem from Twitter, the former name for X. Some users with new Bluesky accounts have posted that they moved to the service due to Musk and his support for President-elect Donald Trump.

Bluesky’s U.S. mobile app downloads have skyrocketed 651% since the start of November, according to estimates from Sensor Tower. In the same period, X and Meta’s Threads are up 20% and 42%, respectively. 

X and Threads have much larger monthly user bases. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates X had 318 million monthly users as of October. That same month, Meta said Threads had nearly 275 million monthly users. Bluesky told CNBC on Thursday it had reached 21 million total users this week.

Here are some of the noteworthy changes in X’s new service terms and how they compare with those of rivals Bluesky and Threads.

Artificial intelligence training

X has come under heightened scrutiny because of its new terms, which say that any content on the service can be used royalty-free to train the company’s artificial intelligence large language models, including its Grok chatbot.

“You agree that this license includes the right for us to (i) provide, promote, and improve the Services, including, for example, for use with and training of our machine learning and artificial intelligence models, whether generative or another type,” X’s terms say.

Additionally, any “user interactions, inputs and results” shared with Grok can be used for what it calls “training and fine-tuning purposes,” according to the Grok section of the X app and website. This specific function, though, can be turned off manually. 

X’s terms do not specify whether users’ private messages can be used to train its AI models, and the company did not respond to a request for comment.

“You should only provide Content that you are comfortable sharing with others,” read a portion of X’s terms of service agreement.

Though X’s new terms may be expansive, Meta’s policies aren’t that different. 

The maker of Threads uses “information shared on Meta’s Products and services” to get its training data, according to the company’s Privacy Center. This includes “posts or photos and their captions.” There is also no direct way for users outside of the European Union to opt out of Meta’s AI training. Meta keeps training data “for as long as we need it on a case-by-case basis to ensure an AI model is operating appropriately, safely and efficiently,” according to its Privacy Center. 

Under Meta’s policy, private messages with friends or family aren’t used to train AI unless one of the users in a chat chooses to share it with the models, which can include Meta AI and AI Studio.

Bluesky, which has seen a user growth surge since Election Day, doesn’t do any generative AI training. 

“We do not use any of your content to train generative AI, and have no intention of doing so,” Bluesky said in a post on its platform Friday, confirming the same to CNBC as well.

Liquidated damages

Bluesky CEO: Our platform is 'radically different' from anything else in social media

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The Pentagon’s battle inside the U.S. for control of a new Cyber Force

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The Pentagon's battle inside the U.S. for control of a new Cyber Force

A recent Chinese cyber-espionage attack inside the nation’s major telecom networks that may have reached as high as the communications of President-elect Donald Trump and Vice President-elect J.D. Vance was designated this week by one U.S. senator as “far and away the most serious telecom hack in our history.”

The U.S. has yet to figure out the full scope of what China accomplished, and whether or not its spies are still inside U.S. communication networks.

“The barn door is still wide open, or mostly open,” Senator Mark Warner of Virginia and chairman of the Senate Intelligence Committee told the New York Times on Thursday.

The revelations highlight the rising cyberthreats tied to geopolitics and nation-state actor rivals of the U.S., but inside the federal government, there’s disagreement on how to fight back, with some advocates calling for the creation of an independent federal U.S. Cyber Force. In September, the Department of Defense formally appealed to Congress, urging lawmakers to reject that approach.

Among one of the most prominent voices advocating for the new branch is the Foundation for Defense of Democracies, a national security think tank, but the issue extends far beyond any single group. In June, defense committees in both the House and Senate approved measures calling for independent evaluations of the feasibility to create a separate cyber branch, as part of the annual defense policy deliberations.

Drawing on insights from more than 75 active-duty and retired military officers experienced in cyber operations, the FDD’s 40-page report highlights what it says are chronic structural issues within the U.S. Cyber Command (CYBERCOM), including fragmented recruitment and training practices across the Army, Navy, Air Force, and Marines.

“America’s cyber force generation system is clearly broken,” the FDD wrote, citing comments made in 2023 by then-leader of U.S. Cyber Command, Army General Paul Nakasone, who took over the role in 2018 and described current U.S. military cyber organization as unsustainable: “All options are on the table, except the status quo,” Nakasone had said.

Concern with Congress and a changing White House

The FDD analysis points to “deep concerns” that have existed within Congress for a decade — among members of both parties — about the military being able to staff up to successfully defend cyberspace. Talent shortages, inconsistent training, and misaligned missions, are undermining CYBERCOM’s capacity to respond effectively to complex cyber threats, it says. Creating a dedicated branch, proponents argue, would better position the U.S. in cyberspace. The Pentagon, however, warns that such a move could disrupt coordination, increase fragmentation, and ultimately weaken U.S. cyber readiness.

As the Pentagon doubles down on its resistance to establishment of a separate U.S. Cyber Force, the incoming Trump administration could play a significant role in shaping whether America leans toward a centralized cyber strategy or reinforces the current integrated framework that emphasizes cross-branch coordination.

Known for his assertive national security measures, Trump’s 2018 National Cyber Strategy emphasized embedding cyber capabilities across all elements of national power and focusing on cross-departmental coordination and public-private partnerships rather than creating a standalone cyber entity. At that time, the Trump’s administration emphasized centralizing civilian cybersecurity efforts under the Department of Homeland Security while tasking the Department of Defense with addressing more complex, defense-specific cyber threats. Trump’s pick for Secretary of Homeland Security, South Dakota Governor Kristi Noem, has talked up her, and her state’s, focus on cybersecurity.

Former Trump officials believe that a second Trump administration will take an aggressive stance on national security, fill gaps at the Energy Department, and reduce regulatory burdens on the private sector. They anticipate a stronger focus on offensive cyber operations, tailored threat vulnerability protection, and greater coordination between state and local governments. Changes will be coming at the top of the Cybersecurity and Infrastructure Security Agency, which was created during Trump’s first term and where current director Jen Easterly has announced she will leave once Trump is inaugurated.

Cyber Command 2.0 and the U.S. military

John Cohen, executive director of the Program for Countering Hybrid Threats at the Center for Internet Security, is among those who share the Pentagon’s concerns. “We can no longer afford to operate in stovepipes,” Cohen said, warning that a separate cyber branch could worsen existing silos and further isolate cyber operations from other critical military efforts.

Cohen emphasized that adversaries like China and Russia employ cyber tactics as part of broader, integrated strategies that include economic, physical, and psychological components. To counter such threats, he argued, the U.S. needs a cohesive approach across its military branches. “Confronting that requires our military to adapt to the changing battlespace in a consistent way,” he said.

In 2018, CYBERCOM certified its Cyber Mission Force teams as fully staffed, but concerns have been expressed by the FDD and others that personnel were shifted between teams to meet staffing goals — a move they say masked deeper structural problems. Nakasone has called for a CYBERCOM 2.0, saying in comments early this year “How do we think about training differently? How do we think about personnel differently?” and adding that a major issue has been the approach to military staffing within the command.

Austin Berglas, a former head of the FBI’s cyber program in New York who worked on consolidation efforts inside the Bureau, believes a separate cyber force could enhance U.S. capabilities by centralizing resources and priorities. “When I first took over the [FBI] cyber program … the assets were scattered,” said Berglas, who is now the global head of professional services at supply chain cyber defense company BlueVoyant. Centralization brought focus and efficiency to the FBI’s cyber efforts, he said, and it’s a model he believes would benefit the military’s cyber efforts as well. “Cyber is a different beast,” Berglas said, emphasizing the need for specialized training, advancement, and resource allocation that isn’t diluted by competing military priorities.

Berglas also pointed to the ongoing “cyber arms race” with adversaries like China, Russia, Iran, and North Korea. He warned that without a dedicated force, the U.S. risks falling behind as these nations expand their offensive cyber capabilities and exploit vulnerabilities across critical infrastructure.

Nakasone said in his comments earlier this year that a lot has changed since 2013 when U.S. Cyber Command began building out its Cyber Mission Force to combat issues like counterterrorism and financial cybercrime coming from Iran. “Completely different world in which we live in today,” he said, citing the threats from China and Russia.

Brandon Wales, a former executive director of the CISA, said there is the need to bolster U.S. cyber capabilities, but he cautions against major structural changes during a period of heightened global threats.

“A reorganization of this scale is obviously going to be disruptive and will take time,” said Wales, who is now vice president of cybersecurity strategy at SentinelOne.

He cited China’s preparations for a potential conflict over Taiwan as a reason the U.S. military needs to maintain readiness. Rather than creating a new branch, Wales supports initiatives like Cyber Command 2.0 and its aim to enhance coordination and capabilities within the existing structure. “Large reorganizations should always be the last resort because of how disruptive they are,” he said.

Wales says it’s important to ensure any structural changes do not undermine integration across military branches and recognize that coordination across existing branches is critical to addressing the complex, multidomain threats posed by U.S. adversaries. “You should not always assume that centralization solves all of your problems,” he said. “We need to enhance our capabilities, both defensively and offensively. This isn’t about one solution; it’s about ensuring we can quickly see, stop, disrupt, and prevent threats from hitting our critical infrastructure and systems,” he added.

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