TechCrunch Industry News DOE gives Microsoft partner $1B loan to restart Three Mile Island reactor; plus, Hugging Face CEO says we’re in an ‘LLM bubble,’ not an AI bubble
Nov 19, 2025
The Department of Energy is lending $1 billion to Constellation Energy to refurbish the Three Mile Island reactor, with Microsoft set to purchase power once it reopens in 2028. Meanwhile, Clem Delangue, CEO of Hugging Face, warns that we're in an LLM bubble, predicting a shift towards smaller, specialized models that could prove more practical and cost-effective than one-size-fits-all solutions. Delangue also emphasizes Hugging Face's financial strategy, showcasing a more sustainable approach amid the AI hype.
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DOE Backing Revives Three Mile Island
- The DOE will provide a $1 billion loan to Constellation Energy to restart Three Mile Island Unit 1, which Microsoft will buy power from for two decades.
- Restarting an existing reactor is cheaper than building new nuclear but still costs more than renewables plus storage.
Microsoft Underwrites Nuclear Power
- Microsoft agreed to buy all electricity from the refurbished 835 MW plant for 20 years, enabling the restart economics.
- Analysts estimate the contract price is around $115/MWh, higher than wind, solar, and geothermal options.
LPO Is A Low-Default Project Financier
- The DOE's Loan Programs Office (LPO) has a mixed history but low default rates and has funded major projects like Tesla and transmission upgrades.
- The LPO also administers programs to reinvest in existing plants that reduce pollutants and emissions.