X-energy IPO: Nuclear Startup Aims for $814M

Nuclear startup X-energy has commenced its investor roadshow for an initial public offering (IPO), with filing documents indicating a target share price range of $16 to $19. At the upper end of this range, the company could secure approximately $814.3 million.

This move by X-energy occurs amidst a resurgence of interest in nuclear fission power, largely fueled by escalating electricity demand from AI data centers and broad societal electrification trends. Amazon stands as a significant supporter, having led a $500 million Series C-1 funding round and committed to purchasing up to 5 gigawatts of nuclear power from X-energy by 2039.

X-energy's reactor design features a high-temperature, gas-cooled system utilizing TRISO fuel. This fuel consists of uranium encased in ceramic and carbon spheres, cooled by helium gas that drives a steam turbine for electricity generation. The TRISO design is anticipated to offer improved safety features over previous fuel configurations, though its widespread adoption is limited.

The company is currently involved in a patent dispute with Ultra Safe Nuclear Corporation (USNC), which declared bankruptcy in 2024. X-energy alleges infringement on its fuel fabrication patents, a matter that reportedly remains unresolved to its satisfaction.

Development of new nuclear reactors outside of China has faced significant hurdles, including substantial delays and cost overruns. Startups like X-energy are focusing on smaller reactor designs to potentially circumvent these traditional challenges. While no small modular reactor startup has yet constructed a power plant, several are racing towards targets set by the Trump administration.

Achieving criticality, the point where fission reactions become self-sustaining, is a near-term goal for many of these companies. However, the transition from criticality to operational and profitable power plants is a lengthy process, potentially taking a decade for mass manufacturing to reduce costs significantly. X-energy estimates a 30% cost reduction for its "Nth-of-a-kind" reactors compared to the initial builds, making the cost of its first reactor a critical factor for its future success.