ChatGPT Stock SPAC | OKLO WARNING

well the CEO of open AI famous for chat

GPT is now doubling down on a nuclear

fission spack

he's been on the board of directors

actually been chairman of this board

since 2015 known the founders since

roughly around 2013 why combinator

involved in this and take a look at this

we're actually going back to spacland

now I've got some thoughts on this and

we're going to go through it but first

understand what's going on

this SPAC is going to take oculopublic

which is a company that's developing a

small nuclear reactor and what you could

do is you could go to their website and

get some pictures of this these are all

just 3D renderings these don't exist yet

and this stuff makes me very very

nervous I'm exhausted at looking at

renderings and projections I thought we

got past renderings and projections but

no apparently they're coming back as the

stock market's going up spacks are back

baby

so basically oclo is uh the the idea

here is that how can we produce a

nuclear power plant that could

potentially just Supply One data center

or one how massive housing tractor maybe

about 15 000 units or one region in a

city or a neighborhood or whatever how

can we create a small footprint building

with a small reactor in it

and basically copy and paste these

around the world and uh the idea is that

maybe we can spend 60 million dollars on

a reactor and end up creating a 15

million dollar uh or 15 megawatt

capacity a 15 megawatt capacity based on

a roughly 24 kilowatt hour per day usage

on average for an American household

covers about 15 000 homes now we did

this research ourselves kind of trying

to play with some numbers the net the

national average for kilowatt usage

tends to be around 24 per house per day

and uh what I thought was really

interesting is when we did the math that

actually converted to roughly whatever

the megawattage is of the power plant is

how many thousands of homes you could

power so if you have a 50 megawatt plant

50 000 homes 5 megawatt uh you know

windmill 5 000 homes kind of incredible

now it does appear that the technology

is a little bit more expensive even at

their 60 million dollar projection than

say wind energy but wind energy is

really good at a couple parts of the day

and not always available which could be

a downside obviously so you could get

like a three uh probably somewhere

around a three megawatt windmill for

around four million dollars so if I

wanted to get about five of these I

would have about a 15 megawatt capacity

for around 20 million dollars while oklo

is expecting to build these nuclear

power plants right here for about 60

million dollars a piece and then have a

15 megawatt generating facility now if

you could sell this at 20 cents a

kilowatt hour it might be less but let's

say you could sell it at 20 cents it

could be pretty desirable because uh you

know that could generate potentially up

to uh 20 plus million dollars in a year

of of electricity uh you know gross

electricity revenue of course you have

costs that go into nuclear fission but

there's there's definitely like the

concept is definitely sexy and so this

SPAC is looking to be valued at 850

million dollars looking to raise 500

million dollars in cash

and this small nuclear design setup has

not actually been tested yet uh they

have some permits to really start

getting into some of this but

they have not been tested on a super

small scale yet like this although

fission technology is is pretty common

you've got fission infusion uh fission

is your your common one uh that uh that

is available uh to nuclear reactors so

the technology is definitely there just

hasn't been brought down to this sort of

smaller scale here the first reactors

are expected to be delivered in Idaho

and Ohio and there are expectations that

perhaps there could be very large

inflation reduction Act tax credits for

these sort of reactors here's an example

of what an oculo 2 Powerhouse would look

like basically for those only just

listening it's it it sort of looks like

a a small maybe four or five thousand

square foot building where you have uh

it's just a metal frame and you have a

Lobby and then you walk into this

smaller room where you have a reactor

sitting there that looks like it's about

the size of a school bus

and uh this is uh this is somewhat

fascinating that in the future we're

probably going to have a lot more

commercial or a a commercial push

towards nuclear which is actually my

opinion great I think it's a phenomenal

source of energy I personally am not

sure about investing in a company like

this because I ultimately what you're

doing is you're selling a commodity

right a unit of electricity is basically

a commodity so you face competition not

just from other nuclear power plants but

also from solar batteries wind uh and

and then let me just let me just almost

hard stop here permitting like good luck

uh I mean I do think though where you

could prove this model out where you're

probably going to start with this model

is factories in the middle of nowhere

because people don't want to live around

a nuclear power plant but if you're like

hey Intel's building a new Factory uh

how about we just put a nuclear power

plant next to that and help power it

great fantastic you know with where this

could actually be very useful they

should try to sell this sucker in Taiwan

Taiwan as we talked about yesterday

Taiwan Imports 96 of their energy and if

China blockaded Taiwan in some sort of

you know takeover battle whatever they

could basically not

kill a single person and just cut

electricity off to the island like no

actual like combat Warfare like a Russia

versus Ukraine just cut off taiwan's

electricity Supply because they have to

physically import 96 of the electricity

uh via you know importing natural gas

and then operating uh you know either

coal-fired power plants or natural gas

power plants

uh and nuclear reactors them having

their own would be a perfect way for

energy sustainability the problem is

again you've got a political environment

that's super anti-nuclear in Taiwan

oopsie Daisy so you probably really end

up trying to uh build out a concept like

this at factories again Ohio Idaho it

doesn't really surprise me Idaho has

already got quite a few uh you know

energy facilities nuclear energy

facilities and research uh it seems like

it's a great place for it but anyway the

fact that spacks are back where now

you're looking at here's a company with

an idea I mean this is really what you

have what you have is a company with an

idea

and now they've been in or they've been

around for about 10 years but it's a

company with an idea

that has some cool renderings of a power

plant and an idea that's very salable

like hey we've got an energy crisis

we've got a problem let's make a pretty

you know diagram here of how we can

create small power plants and uh not yet

a provable business model

and then they're going to essentially be

worth almost a billion dollars

and blowing to me part of this I think

is because you end up getting people

involved like Sam Altman people put

their name on this and then they're able

to spack companies it's kind of like

what chemov did with whether it was open

door Virgin Galactic or weather-wise

now what's interesting is uh Sam Oldman

actually a little bit of history on him

he invested 375 million dollars into

helion and that was a nuclear fusion

company back in 20 uh yeah in 2021

helion is the first Fusion company to

sign a contract to sell energy to

Microsoft and that is expected to start

producing energy by 2028 although that's

much more experimental than a fission

company

uh it's kind of incredible though and

there are real penalties if that Fusion

company doesn't actually deliver energy

uh especially since you know they

haven't quite figured that out yet

which I think is fascinating because it

goes to show that in the smaller nuclear

power plant space you're going to have

competition between not just uh solar

wind and otherwise but also Fusion

that's going to be interesting uh anyway

uh highly uh you know or helion is

another uh hylion that's the destruction

company helion that'll be quite

interesting to see how they can ramp up

uh larger megawatt facilities but uh

sticking on Aqua here for a moment he

um again the company is expected to

spack we do have actually a ticker here

I think it's alt c a l c c is uh is the

spec let's see if that's uh I believe

that's already actually trading

uh yeah ALS alcc

is the ticker and then you'll see the

alt C acquisition Corp it's trading for

10.44 cents right now I have to say I

think though a lot of people are going

to be once bitten twice shy on this

remember back in the day where

everybody's like oh just buy a spack at

ten dollars you can't go wrong buying a

spack at ten dollars and uh yeah no you

can then what happens is they end up

actually reverse merging you get this

merger and then what you get lockup

expirations and everybody on the inside

dumps because the valuation for these

these companies is not so

uh it's kind of remarkable now by the

way if you're on Twitter spaces and you

want to request to chat feel free to

request to chat since uh now we uh are

able to remind you about an expiring

coupon code coming up in two weeks for

the programs I'm building your wealth

not just on YouTube or twitch but also

Twitter live video and Twitter spaces

which I think is kind of cool I still

haven't looked to see if it's possible

that both of those could possibly be

going at the same time I kind of like

The Show Must Go On most so we're gonna

go with the show no matter what but uh

that does seem like it is kind of

interesting uh yeah it actually does

look like I'm live on video and live

with spaces right now how cool okay so

anyway this gives us a little bit of a

look into oclo uh again keep in mind the

biggest risks to a company like aklo in

my opinion are going to be energy and

well I mean number one hands down by far

the biggest risk hard stop permitting by

far are the biggest risk of course it's

the biggest risk why because

if nobody permits your project you're

not going to get off the ground you're

not going to be able to scale this your

revenues are going to be nominal for a

decade or more and it's going to be a

very risky investment in my opinion and

look even though my license financial

advisor and I run an ETF can't give you

personalized advice here on social media

but boy I uh I'm definitely a little uh

a little concerned about uh about the

revenue potential here strictly from a

permitting point of view so that's

permitting but then you've got a big gap

and your next risk is just competition

from other energy sources now I do think

that there is a real potential that

solar and wind over this next decade

have I mean this could end up becoming

the decade of solar and wind right now I

believe markets are very anti-energy

very very bearish energy which I think

is a perfect time to actually start

creating positions in companies like and

phase let me give you a little hint hint

you what you should do is go look at how

many micro inverters and phase expects

to manufacture by the end of 2024 this

is something we've been talking about

with course members for a while now you

should look at how many micro inverters

they're expected to manufacture by the

end of 2024 and then you should look at

how much money uh per kilowatt these

inverters are expected to receive from

the inflation reduction act and then

when you do a little bit of quick math

you can start seeing that the net income

numbers of end phase could change

dramatically more than Wall Street

expects over the next four to five years

so uh pretty remarkable so we'll see

what happens

uh but yeah uh

you know Caleb here says why not just

IPO if you've had a good business for a

decade right so here's the way that

works

a good business takes a lot of startup

money usually uh now there are uh

experimental good businesses and then

there are inherently good businesses an

inherently good business does not

actually require that much startup

Capital because you start making money

very quickly now I'm not trying to Pat

myself on the back here but I just don't

think it's it's challenging what we're

going to do but with my real estate

startup you know knock on wood over here

with my real estate startup I expect we

can take a small amount of money

relative to you know the world of

venture capital and actually start

making money

right away or very quickly and then for

you know about 10 years or seven to ten

years make a lot of money and then IPO

so it'd be a very traditional path start

with small seed grow that make money

prove profitability and IPO that's your

traditional model the problem is if you

just have like some crazy idea that is

either going to go to the moon or just

completely collapse like we're gonna

make solid state batteries or we're

gonna put nuclear power plants

everywhere in people's neighborhoods you

know these these ideas take hundreds to

billions of dollars without

any expectation of return

until all of a sudden the pieces fall

together and then the returns are insane

and so what people do or why they spack

is they basically uh try to I hate

saying this phrase but they kind of

cheat the money raising process

because what they're doing is rather

than going through a traditional

fundraise which could take you like a

year to put together

you basically just go to a blank company

that is a company that's ipoed with a

ticker like alcc or whatever old see and

that company had basically uh zero

everything on their balance sheet it's

easy to audit it's easy for the SEC to

say okay yeah go ahead and IPO they IPO

they don't even ring the bell or

anything they just start trading on the

stock exchange for 10 bucks some form of

par value

and then what happens is they say who

can we merge with they come up with some

crazy outlandish projections and story

and narrative and then they merge with

that company usually in the span of

three to six months with very limited

SEC review so really what you're doing

is you're not you're skipping a lot of

the SEC review you're skipping a lot of

the uh underwriting that you would get

from a traditional IPO and you're

skipping that traditional Market testing

that people like to see before a company

actually goes public so you're

shortcutting all of this to try to make

a bag of cash up front and that's why

I'm not the biggest fan of spax because

I kind of think they're just cash grabs

especially since the uh the people who

put their name on it they end up taking

these insane fees of like 50 to 100

million dollars 10 to 20 percent of the

money raised and that that's just nuts a

hundred million dollar Payday for doing

a spack I mean don't get me wrong it

seems like a great business model but

uh I don't know I guess I guess we'll

see so you know good luck to our club

but it's a that's my take I suppose now

I want you to know this when it comes to

AI

time is what's going to make you money

and if you can prove that value to an

employer you'll always be able to be

employed so this is another way of

making sure that you don't get replaced

but

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