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

X-energy, a nuclear energy startup with significant backing from Amazon, has kicked off its investor roadshow as it prepares for an initial public offering (IPO). The company aims to price its shares between $16 and $19, potentially raising around $814 million if it achieves the upper end of its target, according to filings with the U.S. Securities and Exchange Commission. The renewed interest in nuclear power, driven by the increasing demand for electricity from AI data centers and broader electrification trends, has positioned X-energy and similar companies at the forefront of this energy revolution. Amazon has been a major supporter, leading a $500 million Series C-1 funding round and committing to purchase up to 5 gigawatts of nuclear energy from X-energy by 2039. This IPO comes as a significant milestone for X-energy's investors, who have collectively invested around $1.8 billion into the company, as reported by PitchBook. The startup had previously sought to go public through a reverse merger with a special purpose acquisition company (SPAC), but that deal fell through in 2023 amid a decline in SPAC activity. X-energy's innovative reactor design, a high-temperature, gas-cooled reactor, utilizes uranium encased in ceramic and carbon spheres, cooled by helium gas. This gas transfers heat to generate electricity through a steam turbine loop. The reactor's fuel design, known as TRISO, is anticipated to be safer than earlier fuel configurations, although it remains underutilized in the industry. However, X-energy is currently engaged in a patent dispute with Ultra Safe Nuclear Corporation (USNC), which filed for bankruptcy in 2024. X-energy claims that USNC infringed on its fuel fabrication patents, and the company is seeking satisfactory resolution amid ongoing bankruptcy proceedings. Beyond China, the development of new nuclear reactors has faced significant stagnation due to delays and budget overruns. A new wave of startups, including X-energy, is exploring smaller reactor designs to tackle the challenges faced by conventional models. While these small modular reactor firms have not yet constructed any power plants, many are racing to meet a July 4 deadline set during the previous administration. Although some may not meet this target, achieving criticality—the point at which fission reactions become self-sustaining—remains a priority. Despite the hurdles, X-energy is optimistic about reducing production costs by 30% once its reactor manufacturing processes reach full maturity. Investors will be closely monitoring the costs associated with the first reactor, as this could significantly influence the company's future success.