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Facebook Parent Meta announced an unprecedented agreement with Constellation Energy, The largest operator of American nuclear power plants,, Cement Meta’s tour to turn to nuclear energy to feed its artificial intelligence initiatives with high energy intensity and send constellation shares.
The AI has again rendered hot nuclear energy. In the photo is a constellation nuclear power plant in Pennsylvania.
Key facts
Meta signed an agreement to buy all the power produced in the Constellation factory in Clinton, ill., For the 20 -year period from 2027, companies said Tuesday.
This is the very first example of a company that undertakes to buy all the energy at a single nuclear power plant, according to At the Wall Street Journal, although Constellation has entered a similar, but stripped, 2024 agreement With Microsoft to reopen a Pennsylvania factory.
The financial conditions of the agreement have not been disclosed, but the CEO of Constellation, Joseph Dominguez, told the newspaper that it was “billions of dollars in capital for which you register to manage a factory for 20 more years”.
Constellation actions broke out more than 5% after the announcement, reaching a five -month higher $ 340 per share and a market value of more than $ 100 billion.
Surprisingly
Constellation Energy was one of the largest Wall Street winners because I have reshaped Corporate America. Dating from the end 2022 release of the OpenAI Chatgpt chatbot, Constellation gave more than 230% to investors, from afar the yield of 51% of the S&P 500 during the period. Constellation is the 16th best interpreter of the S&P during the section, perhaps beating more obvious IA winners like Amazon, Google Parent Alphabet, Microsoft, Oracle and Tesla.
Crucial quote
“Nuclear energy, once Pariah has left for the dead, benefits from a renaissance, reinforced by the voracious need for EIA energy and the growing recognition that additional energy will be necessary to balance the intermittence of solar and wind energy,” wrote Ed Yerdeni, founder of Yandeni’s research, in a recent note to customers.
Tangent
President Donald Trump sign An executive decree on May 23 aimed at quadruple the nuclear energy capacity of the United States by 2050. “It is time for nuclear”, Trump said During a press conference on the initiative, flanked by Dominguez. Nuclear energy does not produce carbon emissions like fossil fuels, but nuclear largely Released from Vogue before the proliferation of AI given its high maintenance costs and its concerns about security.
Large number
$ 64 billion at $ 72 billion. This is the amount that META plans to pay capital expenses this year because it builds its initiatives generating AI, the company said In his latest winning report.
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