Aalo Atomics secures funding to develop modular nuclear power systems dedicated to AI data center power supply.

Nuclear startup Aalo Atomics has closed a $100 million Series B funding round led by Valor Equity Partners, with additional investment from NRG Energy and Hitachi Ventures. The round, completed on August 19, 2025, brings Aalo's total capital raised to over $136 million.

The funding addresses a critical infrastructure challenge: artificial intelligence systems require substantial amounts of electricity. Aalo is developing the Aalo-X, a modular sodium-cooled reactor designed specifically to power AI data centers. The reactor is engineered for rapid deployment, with individual units capable of delivering 10 MWe of power. These units will be integrated into 50 MWe "Pods"—the first deployment of this scale at Idaho National Laboratory in five decades.

A significant milestone for the company came on July 4, 2026, when Aalo's Critical Test Reactor achieved "first criticality," marking an important achievement for both the company and the broader U.S. reactor community.

Aalo Atomics was founded in 2023 by Matt Loszak, who brings expertise in both software entrepreneurship and nuclear engineering. The company initially raised $6 million in seed funding, followed by a Series A round of $30 million.

A key competitive advantage for Aalo is its projected electricity cost of 3 cents per kilowatt-hour. This pricing could position the company advantageously as organizations compete to meet the rapidly escalating power demands of AI infrastructure. The company's modular, rapidly deployable reactor technology offers a nuclear-based solution to address the gap between fossil fuels and renewables, providing a carbon-efficient power source tailored to the specific requirements of modern data center operations.