Nuclear startup Valar Atomics is in talks to raise a new funding round at a £4.8 billion valuation, according to multiple sources. The company, which is developing small modular nuclear reactors (SMRs) for data centres and AI infrastructure, is seeking £4.5 billion in new funding.
Valar Atomics' technology is based on a helium-cooled, high-temperature gas reactor, which the company claims is cheaper and faster to deploy than traditional reactors. However, the technology is still in its infancy, and it's unclear how long it will take to be deployed at industrial scale.
The company's rise to prominence is playing out against a broader demand crunch for data centre electricity. Data centres are projected to require significantly more power in the coming years, and nuclear power is seen as a potential solution. Valar Atomics has announced a partnership with Nvidia to explore the development of nuclear energy to power future AI data centres.
Valar Atomics has taken an aggressive legal stance toward its regulator, the Nuclear Regulatory Commission, arguing that the agency wrongly applies the same lengthy licensing process to small test reactors that it uses for full-size commercial plants. The company joined several states and rival startups in suing the commission, but the case has been paused, suggesting a potential settlement is in the works.
Valar Atomics was founded by Isaiah Taylor, who dropped out of high school at 16 and went on to launch several startups. The company has gained significant traction, with backing from prominent investors such as Palmer Luckey and Shyam Sankar.