Sam Altman, CEO of OpenAI, attends the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 18, 2024. REUTERS/Denis Balibouse/File Photo Purchase Licensing Rights

Nuclear startup Oklo (OKLO.N), opens new tab said on Wednesday that it has finalized an agreement with the U.S. Department of Energy for carrying out site investigations related to the company's proposed small nuclear reactor in Idaho.

The company, backed by OpenAI CEO Sam Altman, is aiming to develop its first small modular nuclear reactor (SMR) by 2027.

The deal marks a key step towards construction and would help Oklo focus on geotechnical assessments, environmental surveys, and infrastructure planning, the company said.

After decades of stagnation, nuclear energy has garnered renewed interest in recent times as a clean source of power amid a worldwide push towards net-zero carbon emissions.

U.S. utilities are striking up deals with tech heavyweights like Microsoft and Amazon to supply electricity from nuclear plants for power-hungry data centers.

Oklo, which went public in May through a merger with Altman's blank-check firm, still needs a permit from the Nuclear Regulatory Commission for the proposed plant.

The regulator had denied Oklo's application for a combined construction and operation license in 2022.