- Univest Corp

Venture capitalists are pouring capital into U.S. nuclear startups, a trend driven by the explosive energy needs of artificial intelligence. Funding is surging for both nuclear fusion and fission firms as the technology becomes a central component of sustainable energy security in the era of AI. According to recent reports, global investment in these sectors has topped $4.5 billion across 81 companies in 2026. At this current pace, the year is expected to shatter the 2025 record of $6.2 billion, which covered 93 companies.

Data center hyperscalers are the primary engine pushing these energy projections to previously unthinkable levels. Massive computing facilities require immense power that runs continuously. A demand for such consistent loads traditional fossil fuels struggle to meet without significant emissions led to an “all-of-the-above” approach. In this framework, nuclear energy is viewed as a necessary round-the-clock source of zero-emissions electricity to support the digital infrastructure.

Big Tech has taken a leading role in expanding nuclear deployment. Bill Gates and OpenAI’s Sam Altman are major investors who view fusion as the answer to AI’s growing energy deficit. At the 2024 World Economic Forum in Davos, Altman said, “There’s no way to get there without a breakthrough,” a sentiment that motivates continued investment in fusion technology.

The federal government is equally bullish. The Trump administration signed Executive Order 14301 in May 2025, mobilizing resources to fast-track testing and commercialization. The goal is to “reestablish the United States as the global leader in nuclear energy” and “produce lasting American dominance in the global nuclear energy market.” This policy shift is designed to bring advanced technologies to scale more quickly than the regulatory environment has historically allowed.

The technology under focus is largely small modular reactors (SMRs). These designs aim to solve the problems that made traditional nuclear power fall out of favor. Traditional plants are enormously costly and face long timelines and complex red tape. The country’s most recent facility, Georgia’s Plant Vogtle, finally came online years behind schedule and billions over budget. SMRs offer a different path, as they can potentially be built offsite relatively cheaply, though the technology is still in its infancy.

Although one SMR design has received official approval in the U.S., zero SMRs have yet come online. The Nuclear Regulatory Commission took about six years to approve the NuScale design, but the administration is pushing for the process to be cut to 18 months. Even with this acceleration, first movers could gain a significant advantage in locking down contracts with electric utilities and data centers.

But while the increasing fragmentation and privatization of the nuclear energy sector could be great for innovation and expansion of the technology, it also poses some key drawbacks. For one thing, nuclear startups have so far shown a concerning disregard for voluntary safety guidelines that were tacitly accepted in the nuclear sector until now. In addition to safety concerns, some critics have argued that a focus on cutting-edge nuclear energy technologies and startups