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Valar Atomics Triples to $6B as Sequoia Bets on Nuclear Power for AI
At 39:00 · chapter starts 38:05
The Valar Atomics story is striking — a three-year-old small modular reactor company that tripled its valuation to $6 billion — but Nikesh Arora frames it as one example within a broader energy gold rush [1] — Nikesh Arora "The AI race isn't about model quality anymore — it's about who can secure land, permits, energy, and compute. Chicken manure methane compan…" 38:20 . He describes meeting an entrepreneur who turns chicken feces into methane and is now selling energy directly to hyperscalers at a multi-billion-dollar valuation. The premise is simple: anyone who can produce any energy source in any form is trading at a premium because land, permits, energy, and compute are the four things that will get priced for the next 3–5 years. Jason adds unexpected credibility — he invested in early advanced energy storage and recalls projects that worked technically but couldn't attract capital because IRRs were too low. Now, with AI creating essentially unlimited demand for power, those same projects are suddenly viable. Rory grounds the nuclear euphoria: the regulatory journey for SMRs and novel reactor designs remains long and difficult, and you shouldn't be spending the electricity yet. But from a public policy perspective, nuclear is the only viable path to cheap, abundant electricity — the question is whether regulatory timelines can bend to match the urgency of AI demand. Nikesh closes the section with the structural question that ties energy back to the whole episode: all of this compute-and-energy spending ultimately requires someone — enterprises, consumers — to pay for AI tokens, and that monetization chain is what everything from chicken manure farms to SMR startups depends on.
Valar Atomics, a 3-year-old small modular reactor company, tripled its valuation to $6B in a Sequoia-led round, driven by explosive demand for AI compute power.
The AI race isn't about model quality anymore — it's about who can secure land, permits, energy, and compute. Chicken manure methane companies and small modular reactors are both raising billions because anyone who can produce energy in any form is now a premium asset.
