US nuclear startup fuels next atomic age amid AI boom and rivalry with China

US nuclear startup fuels next atomic age amid AI boom and rivalry with China

In Oak Ridge, Tenn.—once the heart of the Manhattan Project—scientists at a startup called Standard Nuclear are racing to reignite America’s nuclear future. Their goal: produce meltdown-resistant fuel for a new generation of smaller, safer reactors that can power energy-hungry AI systems, military installations and a grid seeking independence from Chinese suppliers, the Wall Street Journal reported.

The stakes are high. The US nuclear sector has stagnated for years, while China now dominates the global race to build new reactors. Yet surging AI power needs, defence priorities, and bipartisan support in Washington are fuelling a new wave of investment in nuclear technology—one that many see as increasingly vital.

“It’s time for nuclear,” President Trump said last month, signing executive orders to accelerate reactor deployment and streamline regulatory approvals.

A fragile but determined revival

Standard Nuclear’s story reflects the urgency and fragility of the sector’s revival. The company is developing tristructural isotropic, or “triso,” fuel—tiny carbon-and-ceramic coated uranium pellets that prevent radioactive leaks and can power advanced small modular reactors (SMRs).

In a testament to their conviction, more than 40 employees worked unpaid for eight months after the startup’s predecessor, Ultra Safe Nuclear, lost its primary backer. Some sold homes or drained savings to keep the project alive.

“Every day, you get in your car and go to work knowing you’re not going to get paid,” said CEO Kurt Terrani.

The gamble paid off. In December, venture investors led by Decisive Point injected $42 million to relaunch the company as Standard Nuclear. The deal reflects a dramatic shift in attitudes toward nuclear investment, long shunned by Silicon Valley. With AI growth pushing electricity needs higher, even risk-averse venture capitalists now view advanced nuclear as an essential component of future energy security.

Strategic imperatives drive demand

The Pentagon is eager to deploy microreactors on remote military bases and ships, while private-sector demand is growing fast. Microsoft and Meta are investing to power massive AI data centres, and the Defense Innovation Unit recently selected eight firms to advance military SMRs.

Meanwhile, the US faces a strategic gap in fuel supply. Russia controls about half the global enriched uranium market, and a US ban on Russian imports will take effect in 2028. Domestic uranium enrichment capacity is almost non-existent. Companies like General Matter and Standard Nuclear are racing to fill the void.

“The investment environment for nuclear is very attractive right now,” said Decisive Point’s Tommy Hendrix, who led the bailout. “You follow the money, follow where the government is investing.”

Global race intensifies

China looms large in the background. The country is building 31 reactors—half the world’s total—and plans 40 more within a decade. The US, by contrast, is producing less nuclear power than a decade ago, and efforts to restart domestic capacity are fraught with delays and cost overruns.

Standard Nuclear’s fuel is already in high demand. Triso fuel orders are booked through 2027, and Trump’s executive orders have triggered a new buying spree. The startup’s fuel is viewed as particularly well-suited for SMRs, which are designed to be both safe and scalable.

Yet the path forward remains challenging. Critics argue that many SMR designs remain unproven, and the regulatory complexities could derail startups before they reach deployment. Some investors remain wary.

“I don’t think this is an area for the faint of heart, or for the quick buck,” said Ross Fubini of XYZ Venture Capital, who passed on several nuclear startups.

A new era of nuclear possibility

For now, though, the nuclear revival appears to have bipartisan momentum and strategic urgency on its side. Trump’s orders will allow reactors on federal lands and aim to reduce the regulatory burden, though some worry this could undermine oversight.

At Standard Nuclear’s Oak Ridge lab, the team remains undeterred. “I believe that if we can get this technology out to the market, we can solve a lot of energy crises,” said fuel manager Dan Billings, who sold land to stay on the project during its leanest months.

The US may have lagged in the nuclear race—but if startups like Standard Nuclear succeed, that could soon change.