Valar Atomics, a nuclear startup developing small modular reactors (SMRs), is in discussions to raise a new funding round at a $6 billion valuation, according to three sources familiar with the matter. Sequoia is expected to lead the deal, which could total $1 billion, as first reported by The Information.
Funding Details and Valuation
The El Segundo, California-based company has already secured $450 million in prior funding, including $340 million in equity and $110 million in debt, at a $2 billion valuation, per a March Bloomberg report. The current round includes capital raised earlier at a lower valuation, reflecting a trend in AI-driven fundraising where deals are structured in multiple installments at varying valuations.
Nuclear Power for AI Data Centers
Valar Atomics recently demonstrated its reactor powering an Nvidia AI chip, coinciding with a partnership announcement to explore nuclear energy for AI data centers. The company aims to address surging electricity demand from data centers, as utilities struggle to add sufficient capacity. Its technology is based on a helium-cooled, high-temperature gas reactor, with plans to deploy hundreds of SMRs.
Industry Context and Legal Challenges
Valar Atomics is among several startups, including Kairos Power, TerraPower, and NuScale Power, developing next-generation reactors for tech and industrial use. The company has also taken an aggressive legal stance, joining states and rivals in suing the Nuclear Regulatory Commission over licensing processes for small test reactors. The case remains unresolved, with litigation paused, suggesting potential settlement discussions.
Founded by Isaiah Taylor, a 27-year-old high school dropout, Valar Atomics counts Palmer Luckey and Palantir CTO Shyam Sankar among its backers. The company’s rise aligns with growing interest in nuclear power as a solution for AI infrastructure demands.
