OpenAI's Sam Altman. Image source: U.S. Federal Reserve.
The scale of compute being promised here is staggering.
Nvidia’s headline-grabbing $100 billion deal with OpenAI looks, at first glance, like a chip story.
OpenAI raises equity, pays Nvidia for data centre hardware, and Nvidia tightens its grip on the AI ecosystem. But the bigger story hiding in plain sight is energy.
The scale of compute being promised here is staggering.
Each gigawatt of capacity will trigger another $10 billion of Nvidia investment, with the first gigawatt expected online in 2026.
By the time the agreement is fully realised, we are talking about the energy needs of ten large nuclear power plants.
That is roughly 0.7% of total US generation capacity, dedicated just to one company’s AI build-out.
This is where the challenge becomes obvious: You cannot power this kind of expansion with fossil fuels without blowing through carbon targets.
Renewables, while important, do not provide the round-the-clock stability that hyperscale datacentres demand. Which leaves nuclear as the only scalable, carbon-free option.
That is why, to me, the real winners from this deal are not just Nvidia and its chip suppliers, but the nuclear sector.
We are witnessing a structural shift where AI adoption drives not only technology investment but also a revaluation of power generation. Nuclear is moving from being a “controversial option” to an essential foundation for digital infrastructure.
Yes, there is still wiggle room in the deal, it is a frame order more than a guaranteed revenue stream, and if AI demand corrects, some of these datacentres may not be built.
But even in a slowdown, the trajectory is clear. AI will be energy-hungry, and the only way to sustain that demand without destabilising grids or emissions targets is nuclear power.
This is why I have positioned in the nuclear fuel cycle. Nvidia may dominate chips, but nuclear will dominate the conversation on how to keep the lights on in the AI age.
S&P Global says U.S. electricity demand is projected to surge 35%-50% by 2040, and small modular reactors have a significant opportunity to deliver reliable and clean power.
The U.S. has the world’s largest small modular reactor (SMR) development pipeline, with over 5 GW of projects underway, fueled by bipartisan support and government incentives.
Leading companies such as BWXT, Oklo, TerraPower and GE Hitachi are spearheading SMR initiatives, primarily in the Southeast and Midwest, although many projects remain in early planning stages.