Founders Fund, the venture capital firm co-founded by billionaire investor Peter Thiel, is supporting an emerging nuclear start-up focused on producing fuel for advanced reactors. With a team that includes experienced professionals from the nuclear industry and SpaceX, the venture aims to innovate production methods for high-assay low-enriched uranium, known as Haleu.
Haleu is a more potent fuel compared to traditional nuclear fuel and is essential for advanced reactors like small modular reactors. Major tech companies, including Amazon and Microsoft, are turning to these reactors to meet their energy demands as they expand their AI-related data centers.
This initiative signifies the increasing relevance of nuclear energy for the largest technology firms, which require a steady supply of reliable, low-carbon electricity while adhering to emissions goals. Recently, Microsoft entered a significant 20-year power supply agreement with Constellation Energy to reactivate the Three Mile Island nuclear plant in Pennsylvania.
Founders Fund’s new venture emphasizes the tech sector’s commitment to not only building new nuclear plants but also bolstering the nuclear fuel supply chain to satisfy the power requirements of AI.
Nuclear fuel enrichment and conversion had seen a decline in investment since the Fukushima disaster in Japan back in 2011 and were further complicated by reliance on Russia for fuel supply. Currently, Haleu is not widely produced commercially, with Russia and China as the primary countries capable of producing it in large amounts.
According to Nick Lawson, the CEO of Ocean Wall, a firm optimistic about uranium investments, “Big Tech has clarified its position—next-generation nuclear is vital for tackling the increasing energy demands of data centers.” Lawson added that the growth of next-generation nuclear is currently limited by fuel supply issues.
Peter Thiel’s connections to nuclear energy ventures include backing the nuclear fusion start-up Helion and funding Transatomic Power, which was focused on developing molten salt reactor technology before it ceased operations in 2018.
This new initiative by Founders Fund will also complement ongoing efforts by Centrus Energy, based in Maryland, which began Haleu production from a demonstration plant last year. Reports indicate that Founders Fund has committed funding to this new venture, pending necessary approvals from U.S. regulatory bodies.