$100M Series B led by Valor Equity Partners pushes Aalo’s total funding to $136M
Company to begin construction of first Extra Modular Nuclear Reactor (XMR) this month, targeting operations in 2026
Flagship 50 MWe “Aalo Pod” designed to scale onsite with data centers using sodium-cooled LEU+ fuel
Aalo Atomics, the Austin-based startup developing fully modular nuclear plants to power AI data centers, has secured $100 million in Series B funding. The round was led by Valor Equity Partners with participation from Fine Structure Ventures, Hitachi Ventures, NRG Energy, Vamos Ventures, Tishman Speyer, Kindred Ventures, and others. This brings the company’s total capital raised to more than $136 million.
The funding will accelerate construction of the industry’s first Extra Modular Nuclear Reactor (XMR), set to begin this month, with operations expected in 2026. Aalo completed its first full-scale non-nuclear prototype earlier this year and is rapidly scaling to meet what it calls an imminent energy demand surge from AI.
“The world’s leading technology companies, as well as state and federal governments, see nuclear energy as a crucial component to powering the AI data centers of the future, as evidenced in recent legislation from forward-thinking states like Texas and Idaho and multiple Presidential Executive Orders,” said Matt Loszak, co-founder and CEO of Aalo Atomics. “Our unique approach of mass manufacturing modular nuclear plants, combined with our commitment to both safety and scalability, positions us at the forefront of this movement and ensures we are ready to meet this imminent market need at record speed.”
The company will use the new financing to double its workforce to more than 120 employees, targeting top-tier engineering and manufacturing talent. Recent senior hires bring expertise across regulation, policy, nuclear technology, and advanced manufacturing, including Jimmy Glotfelty (former Texas PUC commissioner), Bryson Gentile (former Falcon 9 manufacturing lead at SpaceX), Pete Gaillard (ex-TerraPower regulatory affairs), and Nick Touran (founder of “What Is Nuclear?”).
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Valor Equity Partners CEO Antonio Gracias said, “AI is expected to require triple digit increases in the power supply in the coming months and years, creating both a complex problem for U.S. industry and a significant commercial opportunity for the companies that can solve it. We believe Aalo, with its advanced XMR technology, rich manufacturing expertise and highly experienced team, is well positioned to capture this market opportunity, and has already shown its ability to innovate, forge key industry relationships and move extremely quickly. More broadly, we believe that energy supply represents a current constraint and key strategic imperative for the country, and are proud to align ourselves with the innovators who are helping secure our nation’s energy resilience in the face of this massive surge in demand.”
Recent milestones
Selected by the DOE to test its Aalo-X experimental XMR at Idaho National Laboratory under the federal Nuclear Reactor Pilot Program, with criticality targeted for July 4, 2026
Completed DOE Conceptual Design Review with 40+ experts, secured site allocation, and received an Environmental Assessment Determination to expedite review
Opened a 40,000-square-foot manufacturing plant in Austin, Texas
Chosen as one of four partners to develop up to 1 GW of nuclear capacity at Texas A&M RELLIS Campus
Purchased land in Texas to deploy a non-nuclear prototype for coolant and systems testing
Aalo’s flagship product, the Aalo Pod, is a 50 MWe modular plant purpose-built for data centers. Each Pod houses five sodium-cooled Aalo-1 reactors running on low-enriched uranium fuel. With its compact footprint and water-independent design, the Aalo Pod can be deployed directly alongside hyperscale data centers and scaled seamlessly to gigawatt levels.
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