Oklo Inc.’s (OKLO) Role in AI Infrastructure: A Buy Signal?

We recently published a list of Top 10 Trending AI News and Ratings. In this article, we are going to take a look at where Oklo Inc. (NYSE:OKLO) stands against other top trending AI news and ratings.

New AI Models from China Challenge US Dominance

According to a CNBC report, China-based AI lab DeepSeek has sparked concern in Silicon Valley by releasing AI models that outperform leading U.S. systems despite using cheaper methods and less-powerful Nvidia H800 chips. In December 2024, DeepSeek launched a free open-source model developed in two months for under $6 million, which surpassed Meta’s Llama 3.1, OpenAI’s GPT-4o, and Anthropic’s Claude Sonnet 3.5 in benchmark tests. Its latest model, r1, also outperformed OpenAI’s o1 in reasoning tasks, the report states.

DeepSeek’s advancements, achieved despite U.S. semiconductor restrictions, raise questions about America’s AI dominance and the efficiency of large-scale AI investments. Experts attribute their success to techniques like distillation, which optimize smaller models using larger ones, as per CNBC.

READ ALSO: 10 Important AI News on Investor Radars and 10 AI News You Should Definitely Take a Look At.

U.S. Pushes for Global AI Leadership with Policy Changes

As China challenges US dominance, the new US President, Donald Trump is also making announcements to keep the US as the global AI leader. Apart from the announcement of the $500 billion Stargate Project, President Trump also signed an executive order aimed at removing AI-related policies introduced during the Biden Administration, which he claims restricted innovation through excessive government control.

The new order repeals Biden’s AI regulations and instructs agencies to revise policies that may hinder AI advancements. It also emphasizes the need for the U.S. to maintain global leadership in AI, focusing on national security, economic growth, and unbiased AI development. The order includes creating an AI Action Plan and revising federal AI governance guidelines.  It builds on the president’s previous initiatives, such as increasing AI research funding, establishing AI research institutes, and issuing guidance for AI standards and federal adoption.

For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Oklo Inc. (OKLO): Revolutionizing AI with Sustainable Nuclear Energy

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Oklo Inc. (NYSE:OKLO)

Number of Hedge Fund Holders: N/A

Oklo Inc. (NYSE:OKLO) focuses on creating advanced nuclear power plants designed to reuse nuclear waste, delivering clean and dependable energy. Its approach supports sustainable energy solutions, addressing the growing power needs of AI.

On January 24, Wedbush analyst Dan Ives raised Oklo’s price target from $26 to $45 while maintaining an Outperform due to growing confidence in the AI-driven data center expansion. Ives pointed to Project Stargate as part of a larger AI initiative, with nuclear energy expected to play a crucial role in supporting these data centers. Oklo (NYSE:OKLO) is seen as a significant player in this development. Ives wrote:

“We are raising our price target on OKLO as our confidence in the AI Revolution datacenter buildout is increasing under the Trump Administration… Oklo (NYSE:OKLO) is set to be a major player along with Altman’s key AI role looking ahead in our view.”

Overall, OKLO ranks 10th on our list of top trending AI news and ratings. While we acknowledge the potential of OKLO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.