Oklo Inc shares climbed nearly 9.7% in pre-open trading after the U.S. Department of Energy announced the company was chosen for advanced negotiations under the Surplus Plutonium Utilization Program, a federal effort intended to convert designated surplus Cold War-era plutonium into fuel for advanced reactors.
The DOE selection names Oklo among five advanced nuclear companies invited to enter advanced discussions. Oklo said it will team with newcleo, a European advanced reactor developer, to lead work on using surplus plutonium as reactor fuel. Under the planned collaboration, newcleo would provide fuel expertise and may contribute project capital - both elements would be subject to definitive agreements and regulatory approvals.
The newcleo link is a material part of the market reaction. It follows an October 2025 announcement in which Oklo and newcleo agreed to develop advanced fuel fabrication infrastructure in the United States. That prior arrangement included the possibility of up to $2 billion in investment through a newcleo-affiliated vehicle, contingent on mutually acceptable documentation and prevailing industry conditions.
Market participants also pointed to fresh analyst activity: four analysts have increased their earnings estimates for Oklo, signaling a recent improvement in Wall Street expectations for the company’s near-term financial outlook. High short interest likely intensified the share move as traders covered positions on the positive development - short interest rose modestly from 28.61 million to 28.74 million shares in the last reporting period, representing 18.93% of publicly available shares short.
Broad market conditions were mildly supportive but not decisive for Oklo’s surge. The S&P 500 was up 0.4%, the Dow Jones gained 0.6%, and the NASDAQ rose 0.2%, creating a constructive but relatively muted risk-on tone that underscores the company-specific nature of Oklo’s advance.
Why the DOE selection matters
The DOE decision places Oklo within a federal program designed to convert surplus plutonium into usable fuel for advanced reactors - a strategic pathway that aligns with recent policy shifts. In May 2025 federal direction asked the DOE to pause its dilute-and-dispose program and to begin crafting pathways that make surplus plutonium available for advanced reactor fuel fabrication. The DOE selection therefore fits into that evolving policy framework.
Oklo’s chief executive and co-founder, Jacob DeWitte, framed the company’s plutonium work as part of a broader objective, saying it is "part of a larger plan to turn America’s surplus fuel stockpiles into bridge fuel for advanced reactors," strengthening U.S. energy dominance and eliminating material that would otherwise remain in long-term storage.
Market mechanics and investor perspective
Investors appear to be weighing several converging elements: government validation through DOE selection, a deepened partnership with a European technology and capital partner, and a clearer fuel-supply narrative tied to federal policy. Those elements combined to shift market expectations and to catalyze short covering on an elevated short base.
Despite the uptick, the stock remains well below its 52-week high of $193.84. The DOE announcement has renewed investor conviction in Oklo’s commercialization path by supplying tangible government backing to a key element of the company’s technology and market approach.
Bottom line
Oklo’s pre-market rally reflects a blend of policy-driven opportunity and partnership leverage. The DOE selection, the strengthened newcleo relationship and recent analyst revisions together produced a company-specific catalyst that pushed shares higher in a market that was broadly only modestly positive.