Valar Atomics and NVIDIA Demonstrate Nuclear-Powered AI Chip

Nuclear startup powers AI chip in Utah demonstration

Valar Atomics and NVIDIA demonstrated a functioning AI chip powered entirely by a small modular nuclear reactor in Orangeville, Utah, this week. The partnership showcased what the companies call a "waterless" data center approach that relies on helium and air cooling instead of traditional water-based systems.

The demonstration took place at Utah's San Rafael Energy Lab, where Valar Atomics operates its small modular reactor in a state-approved sandbox environment. The reactor powered an NVIDIA chip that launched a website, illustrating the technology's potential at scale, according to FOX 13 News, which first reported the details.

How the waterless cooling works

Valar Atomics founder Isaiah Taylor explained that the company's reactor architecture operates at higher temperatures that eliminate the need for water cooling. NVIDIA has developed complementary cooling systems that also function at elevated temperatures, enabling air cooling through a closed-loop system.

The reactor currently generates 100 kilowatts of electricity. Taylor said the company plans to scale up operations over the next several years in Emery County toward a full commercial system.

Valar Atomics achieved "criticality"—a key nuclear power development milestone—last month, becoming the first company in Utah to operate a working reactor under Governor Spencer Cox's "Operation Gigawatt" initiative to expand state energy production.

Why it matters

Data centers face mounting scrutiny over water consumption, particularly in water-stressed regions like Utah where concerns about the Great Salt Lake have sparked public opposition to proposed facilities. A proven waterless approach could reshape where and how AI infrastructure gets built, potentially opening rural locations while addressing environmental objections that have stalled other projects. The technology also positions small modular reactors as viable power sources for energy-intensive AI computing.

Political and community context

Utah has experienced significant public pushback against data center development, notably the "Stratos Project" proposed by investor Kevin O'Leary in Box Elder County. Environmental concerns prompted Governor Cox to issue an executive order establishing guidelines for data center projects.

Emy Lesofski, director of Utah's Office of Energy Development, expressed confidence in the partnership's potential. "We're standing here today. A lot of people had skepticism about what we could do if we worked together," she told FOX 13 News at the reactor site.

NVIDIA announced plans for a future AI factory in Emery County, though no timeline was provided. Local officials have supported Valar Atomics' project, citing job creation and tax revenue benefits.

Rep. Carl Albrecht, who sponsored Utah's nuclear power development legislation, framed the project as serving dual purposes: "We're going to save water for you guys up north in the Great Salt Lake and we're going to build some AI data centers down here in rural Utah that'll help the economy."

Taylor positioned the technology as addressing national competitiveness concerns: "We know that the United States needs to be competitive in artificial intelligence. AI factories and scaling it out is a national strategic priority for the United States. But we need to do it without taxing local communities of water and power."

FOX 13 News first reported these details from the Wednesday event and reactor tour.