About Aalo Atomics

The Opportunity

One of our core investment themes over the past 24 months has been AI. While chips get most of the attention, power is the real bottleneck across the entire stack. Aalo Atomics has been on our short list for a while. We passed on earlier rounds because the structure wasn’t right. However, we have clean access this time and we’re moving forward.

Aalo goes straight at one of the biggest constraints in frontier compute: reliable, scalable, clean power. AI models are moving faster than the grid can keep up, and power availability is increasingly the gating factor.

Aalo Atomics is building modular, factory-manufactured nuclear reactors designed to power AI data centers and other always-on, high-value loads. The focus is on scalable, repeatable nuclear systems, not custom megaprojects. The company operates a ~40,000 sq. ft. factory in Austin with roughly 50 employees focused exclusively on manufacturing. In-house reactor modules have already been built and shipped from this facility.

Aalo is also actively constructing its first full power plant at Idaho National Laboratory. We will be touring the facility with the team later this month. This SAFE round bridges to a large Series C focused on commercialization and gigawatt-scale production. Aalo fits squarely within LFG’s thesis around American energy abundance, AI infrastructure, and strategic industrial security.

Why It’s Working 

Aalo isn’t talking about what they plan to build someday. They’re already building. There’s real hardware coming out of a real factory, headed to a real site. From factory build, to a working prototype, to a Department of Energy location, they’ve moved from idea to reality in under three years. This is unusually fast for anything in nuclear.

Aalo is also building nuclear power the way modern compute scales. Their 50-megawatt units are sized to match how data centers and hyperscalers deploy capacity. This isn’t nuclear designed for cities or massive utility grids. It’s designed to plug directly into compute infrastructure, where growth happens in repeatable chunks.

They’re attacking the hardest bottlenecks in nuclear, permitting and regulation. This causes most projects to slow to a crawl. Aalo is working with Microsoft to apply AI tools to speed up regulatory workflows, while also choosing a path that starts on a federal Department of Energy site. This approach allows testing and early operation years sooner, rather than going straight through the full commercial licensing process.

On the build side, Aalo avoids custom, one-off megaprojects. They focus on standardized, factory-tested modules that lower cost, reduce complexity, and make scaling realistic. They use commercially available uranium that’s already produced and regulated today. The fuel supply is also secured, removing a major source of uncertainty that has held back other advanced nuclear efforts.

This also isn’t supply in search of demand. Aalo already has agreements in place with hyperscalers and utility partners, showing commercial pull from customers who actually need always-on power at scale.

Why We’re Interested 

What stands out to us is execution. This team isn’t just talking about nuclear on paper. They’ve previously secured Department of Energy authorization for a new reactor design, and are now repeating that process, while actively building hardware, running a factory, and constructing a full-scale plant at Idaho National Laboratory.

Reliability is the real cost driver for AI and large data centers. Power that isn’t always on ends up being expensive once you factor in downtime, storage, and complexity. Aalo is built to deliver dependable, zero-carbon power at data-center scale, where reliability matters.

Aalo has a real shot at defining this category, if early deployments go as planned. We’re excited to be involved while that’s still being built.

Data Room

Deck and additional data room documents available upon request.

Press

1. Aalo Atomics Secures Funding to Build First Reactor

2. Aalo Atomics, DOE Sign Landmark OTA to Speed Aalo-X Deployment

3. Keynote From Cofounders Matt Loszak and Yasir Arafat On Building Nuclear As A Product (Video)
   
   

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Notes

1. LFG+ Membership: LFG+ Members receive priority access to limited allocation and reduced economics — here are our membership details. To receive LFG+ benefits for this deal, you must activate your membership before Dec 19th.

2. Limited Information: the information available to us and what we can share will be limited due to the nature of this deal.