Nvidia Aims to Enter the Nuclear Renaissance with Investment in Bill Gates-Backed TerraPower

This week, TerraPower, the nuclear startup backed by Bill Gates, announced a new funding round of $650 million. This capital will support the construction of its first commercial power plant.

Like other nuclear startups, TerraPower has seen increased interest from hyperscalers, data center developers, and, more recently, chip manufacturers. Nvidia’s investment arm, NVentures, participated in this funding round, marking its entry into the energy sector.

Investments were also made by Bill Gates and HD Hyundai, both of whom are already on the shareholder roster.

In June 2024, TerraPower began building its first power plant in Wyoming. However, the company still needs to secure reactor approval, which it expects to obtain by next year, following the previous administration’s favorable attitude toward nuclear energy.

Once it becomes operational, TerraPower’s first reactor will generate 345 megawatts of electricity, serving as a middle ground between today’s large conventional reactors and the anticipated small modular reactors of the future.

The Natrium reactors developed by TerraPower use molten sodium for cooling rather than water. The design incorporates far more sodium than is strictly necessary for cooling, allowing the reactor to operate during low demand while heating sodium stored in large tanks.

When demand rises, steam turbines can draw heat from the stored sodium. This advancement allows Natrium reactors to maintain stable operations, as nuclear plants typically have limited output adjustability.

The storage system is designed to produce up to 500 megawatts of electricity for more than five hours, effectively filling the gaps created by solar and wind energy generation.

Initially, the startup aimed for a different reactor design with plans for completion in the mid-2020s. However, as uncertainties increased, the focus shifted to the current Natrium design.

TerraPower claims it can complete a reactor within three years of pouring the first batch of concrete, although significant site preparations and construction must occur before reaching that milestone.

While there are signs that the first Natrium reactor may be less expensive than recent reactors in the U.S., it still comes at a substantial cost. The Associated Press reported last year that expenses could soar to $4 billion, with half potentially funded by the Department of Energy.