Nuclear startup X-energy has commenced an investor roadshow in preparation for its initial public offering (IPO), eyeing a share price between $16 and $19, as disclosed in recent filings with the U.S. Securities and Exchange Commission. Should it launch at the upper limit, the company could raise approximately $814 million.
The increased interest in nuclear power, particularly among startups like X-energy, is fueled by a surge in electricity demand stemming from AI-driven data centres and broader electrification across society. Among its notable backers is Amazon, which led a $500 million Series C-1 funding round and intends to purchase up to 5 gigawatts of nuclear energy from X-energy by 2039.
This IPO is a significant milestone for X-energy’s investors, who have together invested around $1.8 billion in the firm. Previously, X-energy sought to go public through a reverse merger with a special purpose acquisition company (SPAC), but that plan fell through in 2023 amid waning SPAC interest.
X-energy’s reactor employs a high-temperature, gas-cooled design, utilising uranium encased in ceramic and carbon spheres cooled by helium gas to produce electricity through a steam turbine loop. This innovative fuel design, known as TRISO, is expected to deliver enhanced safety compared to traditional nuclear fuel configurations, though its adoption remains limited.
The startup is currently involved in a patent dispute with Ultra Safe Nuclear Corporation (USNC), which went bankrupt in 2024. X-energy claims USNC infringed on its fuel fabrication patents, and the issue has yet to be resolved satisfactorily during the bankruptcy process.
Globally, the development of new nuclear reactors has largely stagnated, primarily due to project delays and escalating costs. In response, a new wave of startups aims to overcome these barriers by creating smaller, modular reactors. However, none of these firms has yet built an operational power plant, though they are working towards a deadline of July 4 set by the previous US administration.
While reaching the point of “criticality”—where fission reactions become self-sustaining—may be achievable by some companies, the transition from criticality to commercially viable power plants is expected to be lengthy. While mass manufacturing could reduce costs, achieving profitability typically requires a decade or more, and the number of reactors planned may not be sufficient to fully capitalise on the potential economies of scale.
X-energy anticipates that as its production techniques advance, the costs of building reactors could decrease by 30% compared to initial projects. The financial performance and development costs of its first reactor will be pivotal, potentially influencing the company’s future success in the nuclear energy market.
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