Introduction
One of the key drivers for the development of next-generation nuclear fission reactors—such as small modular reactors (SMRs) and micro-reactors—is the influx of capital from investors. However, some investors have been concerned. Georgia’s Vogtle, the last commercial nuclear reactor in the US, cost over $30 billion and taken decades to complete, plagued by budget overruns and persistent delays. Until recently, nuclear companies relied heavily on the Department of Energy, which faced budget constraints in line with the growing federal deficit. Then, suddenly, AI datacenters, funded by tech titans such as Microsoft, Google, and others, provided the capital and interest needed to revitalize the industry once again. The nuclear industry, once in decline with suppliers exiting the market, has experienced a resurgence, with more investor interest driven by intellectual property (IP) developments, AI-driven energy demands, efficiency opportunities, and a younger generation enthusiastic about the prospects of carbon-free nuclear energy.
The Role of Intellectual Property in the Nuclear Space
Intellectual property (IP) has long been integral to the nuclear industry. Operational know-how, reactor core patents and technology, and trade secrets held close by SMR manufacturers are just a few examples of the value held within a nuclear company’s IP portfolio. What was once an industry constrained by high capital expenditures (CapEx) is now a competitive landscape driven by international competition and strategic partnerships with well-funded AI datacenter operators. It used to be the case (as is the case with other power suppliers) that nuclear industry ROIs were stable and conservative. The industry commoditized nuclear fuel and fission reactor technology and established relationships with suppliers and power users. Disregarding (momentarily) the constraints that the Nuclear Regulatory Commission (NRC) placed on new reactors, nuclear power plants had not been a first-choice investment, as there existed many alternative investments with less risk and similar returns. No parties innovated in the key areas of development, leading to stagnant IP portfolios. With new and fierce competition comes a wave of innovation and the rapid growth of valuable IP portfolios.
In SMR and micro-reactor technology development, specifically, the competitive landscape is shaped by the development of new reactor cores and nuclear fuels. These two areas also remain the highest barriers from a safety perspective. Thus, industry leaders waited for increased funding, technological advancements, and fewer regulatory restrictions from the NRC. The resurgence in innovation, in part due to the R&D efforts and resulting IP of private companies in collaboration with National Labs (such as Argonne National Lab), guided investors back to nuclear. Policy makers responded to the market’s needs by streamlining the licensing process, benefiting investors. Earlier this year, a May 2025 executive order directed the NRC to fast-track approvals for new SMR reactor designs by setting fixed deadlines, established a process for high-volume licensing of micro-reactors, and expedited safety assessments conducted by the Departments of Energy and Defense (DOE and DOD, respectively).
As the NRC begins fast-tracking licenses to companies like Oklo, Inc. (Oklo) for next-generation technologies, the value of the underlying IP increases significantly. There is a direct correlation between the value of the IP and the clearer path to market adoption due to the NRC’s confidence in the safety of the next-generation reactors. The market capitalization of publicly traded companies like Oklo reflects this value.
Some companies are adopting innovative business models to overcome barriers to entry and deliver strong returns to investors. Terra Innovatum, for example, recently went public via a Special Purpose Acquisition Company (SPAC) reverse merger and plans to use commercially available technology to develop its 1 MW micro-reactor technology. By leveraging manufacturing know-how and trade secrets that incorporate commercially available components, Terra Innovatum aims to minimize dependence on custom supplier parts, a supply chain bottleneck that hinders SMR commercialization. Bridging the gap between first-of-a-kind (FOAK) and nth-of-a-kind (NOAK) reactors requires the establishment of a robust, standardized supply chain to ensure scalability and pave the way to profitability for potential investors.
Consequently, it is likely that some of these companies will be unsuccessful in obtaining a license to commercialize or will be unable to collect the necessary funds to go through the process of commercializing a reactor (an expensive process). Regulatory bodies, including federal, state, and local, must streamline this process to facilitate the integration of micro-reactors into the grid, as the standard timeline for nuclear reactor licensing would likely be too lengthy for these types of reactors to be economically feasible.
Lastly, licensing or selling technology is always an option to catalyze innovation. As it stands today, over 50 companies are continuing to develop technology that would contribute to the commercialization of next-generation reactors, all of which could move much faster with access to additional IP through acquisition or licensing.
The Role of Artificial Intelligence in the Nuclear Space
Beyond the influence of AI data center demand, artificial intelligence is poised to transform nuclear operations. AI has the capability to optimize nuclear power plant processes, enhance safety through continuous monitoring, and streamline everything from supply chain logistics to electric power deployment directly to a grid or data center. Further to the point about the importance of IP in nuclear, the data necessary to train AI models/agents is proprietary and invaluable to current and future operators of nuclear power plants.
NRC Commissioner Matthew Marzano recently discussed the near-term impact of AI on the industry. He noted that AI is expected to augment NRC staff, improving the speed and efficiency of licensing approvals. The NRC plans to use generative AI to alleviate licensing bottlenecks, aligning with the current administration’s push for faster nuclear deployment.
Mr. Marzano also touched on AI’s role in accelerating nuclear fuel development, highlighting that it would be useful in expediting the testing of edge cases. The NRC consistently oversees nuclear plant operations at the Pacific Gas and Electric Company, and using AI to improve operational efficiency is a priority for the NRC. The NRC’s acceptance of AI use to aid technology development, operational efficiencies, and regulatory streamlining may serve as a catalyst to bring investors back to the nuclear industry.
Microsoft’s Director of AI, Nelli Babayan, stated that the company is ready to deploy AI agents in nuclear facilities faster than the NRC can approve them. These agents are intended to support human-led operations while mitigating security risks by protecting proprietary data. Matt Dennis at the NRC commented that he believes the timeline for implementing the said AI agents is 5-10 years.
Industry leaders anticipate mitigating AI-related risks through a slower implementation process and a “trust but verify” methodology. Stephane Baude of the International Atomic Energy Agency (IAEA) recently downplayed concerns about malicious AI agents, noting that operators already use machine learning for data collection. She argued that AI inspectors would function similarly to human inspectors in terms of data gathering.
Investors are likely to anticipate reductions in operating costs with the implementation of AI, lower CapEx barriers to entry with reduced regulatory costs, and shorter timelines with fewer bottlenecks in the licensing process.
The Role of Public Perception in the Nuclear Space
Nuclear energy enjoys bipartisan support. While some executive orders from the current administration have faced public scrutiny, recent directives aimed at expediting the deployment of next-generation reactors have been met with enthusiasm. The Biden Administration also maintained strong support for clean energy, and thus, the DOE has invested millions of taxpayer dollars towards this effort. An improved public perception of nuclear energy has helped create a more favorable political and regulatory climate, which in turn encourages private investment and reduces pressure on the US government to act as the sole financial backer of new nuclear projects. Next-generation reactors promise safety, reliability, and clean energy to the public, and this premise has reached a comfort threshold among the American people, leading to greater than 60% public support for using nuclear energy to provide electricity in the US, according to a 2025 Gallup poll.
Public support reduces the risk of pushback from federal and state governing and regulatory bodies, again mitigating the concerns of potential investors in the industry.
Conclusion
The convergence of technology and intellectual property development, artificial intelligence, and growing regulatory and public support is reshaping the nuclear energy landscape. Investor confidence continues to grow as IP becomes a strategic asset, and AI accelerates both regulatory and operational efficiencies. Public support, bolstered by bipartisan policy and an intrigued younger generation, is further reducing perceived risk to investors. The nuclear industry, rising from the ashes, is now defined by innovation, growth, and a renewed relevance in the US and global energy mix.
