The answer to British nuclear is the Magnificent Seven
Welcome to AI Collision 💥,
In today’s collision between AI and our world:
- Build baby build… OK wannabe Trump
- Nuclear stocks still popping off
- Michelin’s 10-fold productivity boost
If that’s enough to get the nuclear stocks popping, read on…
AI Collision 💥
“Build baby build.”
🤢
These are the words of Prime Minister Keir Starmer when talking about the government’s plan to make it much easier to build mini nuclear reactors across the UK.
Fundamentally, it should be easier to build nuclear energy in the UK. So from that perspective, anything that achieves that is good. However, leave the wannabe-Trump slogans at home please prime minister.
As the government and nuclear industry knows, the time to go from approval to actual power generation from a nuclear plant takes decades.
It’s not all dissimilar to a mining site, where the process from discovery to product can take equally as long.
But that’s also why modern governments have always been so shockingly disorganised with long-term policy like nuclear energy. They know that anything they put in place is most likely to be ruined by either the opposition or some spud that gets into power within their own party while they’re in some cushy diplomatic role (or on the board of a tech company) in a decade’s time.
So when the flavour of the day is nuclear energy – and it very much is, which I’ll show you in a moment – then yes, you can expect the government who is desperately flagging in the polls to spin up a new policy to get money, jobs and votes flowing.
For the current government, that’s a new nuclear strategy.
Or at the very least the ability for reactors (SMRs) to get built faster and easier in the UK.
It also probably helps that one of the world’s leaders in SMR technology happens to be Rolls-Royce (RR) – so it wouldn’t be a stretch to think it’s been pushing on the PM at some point too.
The key argument for these nuclear reactors is conveniently boiled down to something the size of a drinks can.
However, the question remains, who wants to live with a small modular reactor in their backyard?
Or at worst, who wants to live next door to one?
Because whether we like it or not, someone will have to. Or maybe SMRs occupy existing infrastructure that’s no longer being put to use… like coal plants.
The thing is, the worry for most people is if it’s easier to get nuclear reactors built, where will they exist?
No one is going to want even the safest reactor in their backyard. Unless they don’t have a choice…
You see, the government never wins from this. They try to get more built, and then the opposition or some other party pushes back. Fears of meltdowns, Fukushima, Chernobyl, coming to a village near you.
It’s the hardest PR job in the world, making people see the benefits of nuclear. That’s why the government has it all wrong. They should be leaning on “Big Tech”, the AI companies, to get it done.
I’ve got an interesting poll on this today (I’d love to get your thoughts on that later). But I think depending on who breaks the news makes a huge difference to where and how nuclear reactors get built.
And it’s Big Tech that’s driving the nuclear story anyway. The idea that to power their AI data centres, they will need SMR technology, rebooting of old nuclear plants and an abundance of nuclear energy has not gone away.
If anything, the realisation of AI and nuclear going hand in hand is ramping up. It’s why you look at the three leading “new nuclear” stocks’ performance over the last year and the numbers are astounding.
There’s Oklo (OLKO) up 348% in the last year, NuScale (SMR) up 715% in the last year and Nano Nuclear Energy (NNE) up 832% in the last year.
These are all SMR related, each looking to develop their own unique style of SMR. And it’s sending them skywards.
Are they overvalued? Maybe. Is the “nuclear AI” story overhyped? Could be. But also, will these AI data centres suddenly start operating on coal or oil energy? No. They’ll use some wind and some solar, but neither on their own or combined are powerful or reliable enough. The short answer is that for AI data centres to work, they need nuclear. So there’s very likely more room to run for these nuclear AI stocks. And it means the government better get their act in gear. Because if they can’t get these new nuclear technologies built, then Big Tech is going to take their AI data centres elsewhere.
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Boomers & Busters 💰
AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).
Boom 📈
- BigBear.ai (NYSE:BBAI) up 109%
- Gorilla Technology (NASDAQ:GRRR) up 36%
- Nvidia (NASDAQ:NVDA) up 8%
Bust 📉
- Amesite (NASDAQ:AMST) down 11%
- Oddity Tech (NASDAQ:ODD) down 10%
- Tesla (NASDAQ:TSLA) down 10%
From the hive mind 🧠
- This is why science is cool. Show this to your kids, grandkids or anyone. This is what we can do with modern tech and with AI. Unlocking the secrets of thousands of years ago.
- Microsoft has a list of around 300 case studies of companies implementing AI. This one I found interesting, because how does a tyre company find a 10-fold increase in productivity? Here’s how.
- The EU will get left behind if they continue to regulate and not innovate. You are now starting to see European leaders scramble as this realisation hits them squarely in the face.
Artificial Polltelligence 🗳️
I have a theory that even if the government were to announce new nuclear reactors, and that it would lower energy costs for everyone it would still be negatively received. However if that same announcement came from a different source… eg one of the “Magnificent Seven”, then it would get the public stamp of approval.
What do you think?
Weirdest AI image of the day
ChatGPT’s random quote of the day
“Simple things should be simple, complex things should be possible.”
— Alan Kay, 1984
Thanks for reading, and don’t forget to leave comments and questions below,
Sam Volkering
Editor-in-Chief
AI Collision
Although I said Mr Mark W would get a negative reaction to SNR’s it would be a pity as we do need them and ROLLS ROYCE have been putting them in our submarines for years.
I wonder if there’s a British equivalent of Zuck that might be able to lighten the message?
As long as the ‘magnificent seven’ sponsor some RR SMR,s in the mix to smooth the path in the UK.
I read that RR is still waiting for permission from a government agency to build SMRs.
They’re in the mix of a competition grant. Likely winners, as in the UK there’s really no close competition, and my feeling is that the gov. would go with RR before they’d go with overseas ones. Having said that, maybe they choose American SMRs to avoid tariffs in other areas?
I have a solution to the not in my back yard problem. Imagine if you will that anyone who agrees to have an SMR sited within a certain distance of their home gets free energy for as long as they live there. I believe that you would get far fewer objections from people and even find that some people would like to live in those areas because of the free energy. Add a British company like Rolls Royce and some local employment opportunities into the mix and keep the government well and truly away from the projects and I believe that they could be built just about anywhere they are needed with the minimum of fuss.
However politicians always feel the need to meddle in such things and would no doubt want to tax people on the benefits they received on the free energy. Never underestimate the governments ability to take a perfectly good idea and destroy it with their nonsense.
Genius
Why do `I have to tick loads of stupid pictures of bikes, bridges and I’m becoming triggered by traffic lights – I mostly get it wrong (am I stupid or is our overlord machines).
AI guys. The land of the machines. At least lets use it before it takes our jobs and hopefully lets me watch TV whilst doing the dishes.
It does the dishes to be clear in case Mr Machina misinterprets the cynicism.
Oh – cars this time – this is staring to become FUN – er not.
The anxiety I get when I’m not sure if I count the pole as the traffic light or not is crazy
We are training AI and not getting paid for it.
Rolls Royce is German now…
JB – completely agree with you. The NIMBY’s would have a field day if Zuckerberg were to come over here and tell us what HE thought WE needed “Nowt to do with you mate, b****r-off” home!
There are plans to put 4 smr’s on a disused coal fired station not too far from me and is going to public consultation. Will be interesting to see how it turns out, as plans for a hydrogen plant in the same area were recently shelved.
Your suggestion of free energy to people living in the immediate area could possibly be the only solution. The problem, of course, would be the argument as to how close would ‘in the immediate area’ be to a nuclear plant.
can’t of wrong question ,i say the people will go for nuclear, the goverment will not or keep on delaying again
As nuclear will take ages even if much safer there is still‘history’ I like idea of free energy but what about TIDAL no supply problems much quicker than nuclear no scary history and if wind turbines can be built off shore so can tidal turbines ( obviously shipping lanes and fishing grounds-if they haven’t been fished out by EU—would need to be taken into account
The power of the sea must be huge. Look at Tsunamis or the waves in Seaford or Cornwall. Agree this should be baseload if you wanted clean energy. Hugh capital investment but hydro-dams have been utilising the power for years. But plonking bit kit into the ocean to capture that power is a huge undertaking so see why quicker wins are sought.
Now it’s stairs. But getting better at this. Bit like Tetris. I can beat the machine. But not at Chess or Go.
Tidal tech has been researched, tested, in some cases deployed commercially but never successfully able to deliver the necessary loads to the grid to make it viable. Also from what I understand of it over the years, the punishment equipment takes under the sea makes maintenance and longevity an issue, just adds to the cost and then the ROI becomes unviable.
I loved the can picture. Is this machine or actual His Majesty’s Government in power.
I don’t understand the UK has nuclear submarines. We have this tech for years. They are supported by batteries, so makes sense RR/Babcock/BAE developed safer and better batteries (not like the ones in my Old Ford escort which you had to clean the white stuff off the terminals and burnt like hell) and full of acid.
I hold all three of your yanks Oklo Nano and Nuscale, in small amounts I’m no big investor – yet.
They left energy to France and China to provide and then pulled the plug. So inviting Trump and an ageing maturing Zukerberg conservative type into the UK won’t work with Mr Lammy. They are gone if a few years anyway so lets hope someone starts the infrastructure off. The sites are the first choice. LONDON – where would you put it – an SMR to give caseload when the wind don’t blow and the sun don’t shine and the battery only lasts 2 hours. Basildon would be nice but just a joke.
Maybe the ‘log jam’ will be the current grid infrastructure so needs to be close to current (pun alert) locations. There are loads around London. We used to take water from Hertfordshire to feed the ever growing populations. All water falls towards the Thames and London hence why it is here, called gravity. Like the Palisades though they still could not put out the bloody fires idiots. History does not repeat but rhymes.
Had to laugh when the UK PM announces plans for Nuclear energy and Mad Ed Milband the Green Energy minister or similar title just wants the UK run on wind mills and solar, both reliable as the weather, or more correctly dependent on the weather and then we have our Chancellor – Rachel from Accounts – saying the UK is going to go big with massive investment in data centres and AI, not relying on windmills and solar to power them we aren’t. Great to have joined up thinking in our government!
Look at Copenhagen Atomics. There is a small reactor which is about the size of 2 containers. It uses enriched spent uranium of which we have plenty
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