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Amazon-backed X-energy files to raise up to $800M in IPO

X-energy, a nuclear startup backed by Amazon, is targeting an IPO to raise up to $800 million, anticipating a share price of $16 to $19. With increasing demand for nuclear power due to AI data centers, X-energy aims to sell 5 gigawatts of power to Amazon by 2039. It faces challenges including a patent dispute related to its innovative high-temperature gas-cooled reactor.

Key points

  • X-energy is conducting an IPO roadshow with target prices between $16 and $19 per share.
  • If priced at the high end, the IPO could generate approximately $814 million.
  • Amazon is a significant supporter, having invested $500 million and committed to purchasing 5 gigawatts of power by 2039.
  • X-energy has raised about $1.8 billion from investors, who will be relieved by the IPO news.
  • The firm had previously sought a public listing through a SPAC but canceled due to market conditions.
  • X-energy's reactor uses a TRISO fuel design, which is claimed to be safer but not widespread.
  • The company is in a patent dispute related to its fuel technology with Ultra Safe Nuclear Corporation, which went bankrupt in 2024.
  • The nuclear industry faces challenges, with new reactor developments stalled outside China, while new startups aim to innovate by creating smaller reactors.

Why it matters

  • The trend shows a renewed focus on nuclear power as societies seek sustainable and reliable energy sources amidst a global energy crisis linked to increasing electricity demand.
  • Historically, nuclear power investment has fluctuated, often swayed by safety perceptions and environmental concerns.
  • Technological advancements in nuclear reactor designs, such as modular reactors, align with current trends towards efficiency and low-carbon energy solutions, vital for addressing climate change.

X-energy's IPO marks a significant step in the resurgence of interest in nuclear energy, driven by innovation and demand for cleaner electricity, but it faces industry challenges that could impact its long-term viability.