(Reuters) -OpenAI CEO Sam Altman will step down as chairman of nuclear technology startup Oklo, paving the way for potential tie-up between the companies.

The announcement send shares in Oklo down more than 11% in extended trading on Tuesday.

Jacob DeWitte, Oklo CEO and co-founder, will take over the role of chairman, according to the company, which aims to develop its first small modular nuclear reactor by 2027.

The startup will continue to “explore strategic partnerships with leading AI companies, including potentially with OpenAI,” Caroline Cochran, Oklo co-founder, said in a statement.

Oklo went public in the U.S. in May 2024 through Altman’s special purpose acquisition company, AltC Acquisition Corp.

After decades of stagnation, interest in nuclear power has surged as a clean and reliable energy source as the generative AI boom has driven up power consumption and companies globally try to move towards net-zero carbon emissions.

In March, Oklo initiated a Pre-Application Readiness Assessment with the U.S. Nuclear Regulatory Commission (NRC) for its Aurora Powerhouse reactors to address the first phase of Oklo’s combined license application submission for the reactors.

In December, Oklo signed a non-binding agreement to provide power to Las Vegas-based data center operator Switch.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona and Tasim Zahid)