Nuclear power startup Antares has raised $470 million in a Series C funding round led by Paradigm and Caffeinated Capital, aiming to develop small modular reactors (SMRs) for U.S.military bases.The investment includes $370 million in equity and $100 million in debt, positioning Antares as a key player in the advanced nuclear energy sector.

The company's SMR technology uses TRISO fuel, which is encapsulated in carbon and ceramic shells to enhance safety compared to traditional nuclear fuels.

Antares's Mark-0 reactor achieved criticality at Idaho National Laboratory, and it is one of three finalists in the Pentagon's Advanced Nuclear Power for Installations program.

While investors are optimistic about nuclear energy's role in meeting rising electricity demand from data centers and electrification efforts, challenges like immature supply chains and high costs remain.Lazard estimates SMRs will cost around $214 per megawatt-hour, making them less competitive than gas turbines.Antares plans to deploy its first reactor by 2028, targeting military installations.Despite hurdles, the company's focus on government contracts reflects the U.S.military's price-insensitive nature.

Other advanced nuclear startups like X-energy and Radiant Energy have also secured significant funding, highlighting growing investor interest in this sector.