Nuclear startup Valar Atomics, developing small modular reactors (SMRs), is reportedly in talks to raise new funding at a $6 billion valuation. Sequoia is expected to lead the round, which could reach $1 billion. This follows a previous raise of $450 million at a $2 billion valuation.

These multi-stage funding rounds, with varying entry prices, are becoming common, potentially masking the true investment cost for new investors. This trend is occurring amidst a surge in demand for energy to power AI data centers, a sector facing potential capacity shortages.

Valar's technology, a helium-cooled, high-temperature gas reactor, aims to power data centers. The company recently demonstrated its reactor powering an Nvidia AI chip and announced a partnership with Nvidia to explore nuclear energy for AI infrastructure. Valar faces competition from other SMR developers like Kairos Power and Terra Power.

Founded by Isaiah Taylor, Valar is also involved in a lawsuit against the Nuclear Regulatory Commission regarding licensing processes for test reactors. The company's ambitious plans are set against the nascent stage of SMR technology and industrial-scale deployment.