Sam Altman-backed Oklo has agreed to go public in the US through a merger with his blank check firm in a deal that values the nuclear startup at $850 million, the companies announced on July 11. Altman is bringing together Oklo that provides emission-free and affordable energy solutions and his special purpose acquisition company, AltC Acquisition Corp, in a deal that will fetch the combined company up to $500 million, according to news agency Reuters.
Altman, CEO of OpenAI – the AI startup behind the viral chatbot ChatGPT – co-founded AltC Acquisition Corp, with Churchill Capital in July 2021, and has served as its CEO and chairman of Oklo.
The deal comes as climate awareness and investor interest in sustainable business practices have surged with money managers looking to factor in environmental social governance (ESG) policies, according to the report.
‘’abundant energy is important to a great future and there are only a few technologies that can deliver it safely, cost-effectively, at scale, and without burning carbon. as CEO of altc, I am excited to be combining with Oklo, a unique company positioned to lead in fission,” said Sam Altman on Twitter.
Still, the SPAC market has been on a downward spiral since last year after gaining popularity in 2020. The sector has taken a hit amid higher investor redemptions and tightening regulatory scrutiny. The companies expect the deal to close in late 2023 or early 2024, following which the combined entity will trade on the New York Stock Exchange under the ticker “OKLO.”
SPACs are companies that are listed on exchanges but have no business operations. They use the pool of capital raised through an initial public offering to merge with a privately held company, in a deal that then takes it public.
Source: Mint