Austin, TX - Aug 19, 2025 - Aalo Atomics, a pioneering nuclear energy startup, today announced it has raised $100 million in Series B funding to build its first microreactor prototype and integrate it with an experimental data center. The round, led by Valor Equity Partners, will accelerate the company’s mission to deliver abundant, low-cost clean energy at 3 cents per kilowatt-hour. With participation from a diverse group of investors, this investment positions Aalo Atomics to address the surging energy demands of AI and data centers through mass-manufactured nuclear solutions. The funding brings the total raised to approximately $133 million, highlighting strong confidence in Aalo’s innovative approach rooted in open-sourced technology from the Idaho National Laboratory.
Funding Details
Aalo Atomics has secured $100 million in its Series B funding round, led by Valor Equity Partners. Participants include 50Y, Alumni Ventures, Crescent Enterprises, Crosscut, Fine Structure Ventures, Gaingels, Harpoon Ventures, Hitachi Ventures, Kindred Ventures, MCJ, NRG Energy, Nucleation Capital, Perpetual VC, Tishman Speyer, and Vamos Ventures. This brings the company’s total funding to approximately $133 million. Valuation details were not disclosed.
Strategic Goals and Use of Funds
The new capital will be allocated to key initiatives aimed at rapid prototyping, regulatory advancement, and scaling production. Below is an organized breakdown:
- Prototype Construction and Testing: Fund the build of the Aalo-X prototype reactor at the Idaho National Laboratory, with operations targeted for summer 2026, including extensive sodium testing in Texas and construction of a full-scale non-nuclear prototype.
- Manufacturing and Infrastructure: Establish a pilot factory, begin manufacturing and fuel fabrication for Aalo-X in 2025, and set up a 40,000 sqft space for development.
- Regulatory and Quality Assurance: Advance DOE authorization, implement Nuclear Quality Assurance standards, and complete environmental reviews for the site.
- Team Expansion: Scale the team to 120 people by 2026, recruiting experts in manufacturing, engineering, and nuclear technology from diverse backgrounds.
- Data Center Integration and Innovation: Develop an experimental data center alongside the microreactor to demonstrate seamless integration and support the goal of powering AI-driven infrastructure.
These efforts are designed to achieve Final Design in under 30 months and enable mass production of Aalo Pods, each delivering 50 MW of electricity.
Historical Funding and Growth
Aalo Atomics, founded in 2023, has rapidly expanded from conceptual design to prototype development, growing to about 30 employees with offices in Austin, Texas, and Idaho Falls, Idaho. The company unveiled its first non-nuclear prototype in April 2025 and has attracted top talent from tech and energy sectors. Below is a table summarizing its funding history:
| Round | Date | Amount Raised | Lead Investors | Valuation (Post-Money) |
|---|---|---|---|---|
| Seed | April 2023 | $6.26M | Fifty Years (50Y) | N/A |
| Series A | August 2024 | $27M | 50Y, Valor Equity Partners | N/A |
| Series B | August 2025 | $100M | Valor Equity Partners | N/A |
Note: Total funding to date is approximately $133M. Early rounds focused on conceptual design and team building, with growth accelerating through partnerships with the Idaho National Laboratory.
Aalo Atomics’s Technology
Aalo Atomics is developing the Aalo-1 microreactor, a sodium-cooled design based on the open-sourced Marvel small modular reactor from the Idaho National Laboratory. The flagship product, the Aalo Pod, combines five Aalo-1 reactors to generate 50 megawatts of electricity, purpose-built for data centers and scalable for cities. Key features include modular, factory-manufactured components for rapid deployment, aiming to reduce costs through economies of scale. The Aalo-X prototype will include an integrated experimental data center to showcase direct powering of AI infrastructure without grid dependency.
Industry Impact and Challenges
Aalo Atomics is poised to disrupt the nuclear energy sector by shortening build timelines and lowering costs, potentially enabling widespread adoption of small modular reactors (SMRs) for clean energy. This could address the energy crunch from data centers, following trends seen in deals like Kairos Power with Google. Challenges include meeting aggressive 2026 deadlines amid historical delays in nuclear projects, navigating stringent regulatory approvals, and ensuring safety in innovative designs.
Market Context and Industry Trends
The nuclear industry is experiencing a renaissance driven by AI’s energy demands, with startups like Aalo attracting hyperscaler interest for carbon-free power. Trends include SMR development for modular, cost-effective deployment, competing with renewables and gas at targeted prices like 3 cents/kWh. Government support, such as DOE programs, bolsters this shift toward advanced nuclear for sustainable growth.
Stakeholder Perspectives
Investors, including Valor Equity Partners and energy giants like NRG Energy and Hitachi Ventures, view Aalo as a leader in scalable nuclear solutions for tech-driven energy needs. Partners like the Idaho National Lab highlight the value of leveraging open-source designs for innovation. Industry observers note the potential for Aalo to set new standards in reactor manufacturing efficiency.
Stakeholder Insights
CEO Matt Loszak stated in a LinkedIn post, “the first reactor will be operational by summer 2026.” CTO Yasir Arafat, drawing from his Marvel project experience, emphasizes the technology’s readiness for mass production. Jon Guidroz, SVP of Commercial & Strategy, brings insights from hyperscalers like Microsoft and Google, noting, “Aalo’s approach untethers humanity’s growth from environmental impact.”
About Aalo Atomics
Founded in 2023 and headquartered in Austin, Texas, with an office in Idaho Falls, Idaho, Aalo Atomics is dedicated to creating abundant clean energy through advanced nuclear technology. The company, a pseudo-spinout from the Idaho National Laboratory, employs around 30 people and boasts a team of experts from SpaceX, Tesla, Microsoft, Bloom Energy, and GE Hitachi. Aalo focuses on mass-manufactured microreactors to power data centers and cities, backed by over 14 investors.
Future Outlook
Aalo Atomics plans to complete nuclear construction by 2026, scale production of Aalo Pods, and deploy thousands of units to achieve widespread low-cost nuclear energy. The company aims to expand into city power applications and continue de-risking through regulatory milestones, potentially revolutionizing the energy landscape for AI and beyond.
Media Contact
For press inquiries, please contact hello@aalo.com.
Source : Aalo Atomics
