Jay Yu - This Laser Enrichment Technology Will Change the Entire World | SRS #275

In this podcast episode, Jay Yu shares his unique journey from growing up in a modest immigrant family on the Upper West Side of New York City to becoming a prominent entrepreneur in advanced nuclear energy and laser uranium enrichment technologies. The conversation explores his background, the challenges and inspirations that shaped his career, the state of nuclear power in the US and globally, the business models and technology behind micro reactors and laser enrichment, national security implications, and the potential future impact of these technologies on energy, AI, military applications, and society at large.

Early Life and Upbringing

Jay Yu begins by describing his humble beginnings as a child of immigrant parents from southern China who settled in New York. Growing up in a crowded, lower-income tenement on the Upper West Side, Yu recalls how his mother worked in sweat shops, often taking him along due to lack of childcare, and his father worked as a carpenter making French doors. Despite financial struggles, Yu emphasizes the importance of recognizing business dynamics from an early age, citing a story of watching his mother work slowly to avoid mistakes and earn less money, which planted seeds of risk-taking and ambition in him. He shares how cultural and language gaps affected his relationship with his parents, though he cherishes their hard work and sacrifices.

Education and Early Career

Yu's academic journey was not straightforward. He attended local public schools and struggled academically, graduating with only a C-minus average in psychology from City College of New York. Preferring practical experience, he started working while attending school and leveraged a strategic approach he calls "the matrix" — figuring out unconventional, achievable ways to reach goals. For example, he worked full-time at Columbia University while studying and acquired knowledge of their complex financial systems. This created value that helped him become a business manager at Columbia's history department despite his lack of a formal degree at the time. Yu then sought to enter Wall Street by gaining access to top-tier job databases through enrollment in Ivy League classes, though he knew he wouldn't excel academically. His hard work and persistence landed him a role at Deutsche Bank amid the 2008 financial crisis.

Lessons from Investing and Startups

After leaving banking in 2009 during the financial meltdown, Yu transitioned to investing in startups across various sectors like cannabis and biotech. He shares insights on why many startups fail, often due to founders' inflated egos and lack of integrity after raising funds. His own investment philosophy values humility, strong character, and genuine leadership. He highlights his ability to quickly assess founders' true nature and dedication, which contributes to his success in both investing and entrepreneurship.

Founding Nanuclear Energy and Micro Reactors

Around age 40, Yu combined his capital markets experience and intuition about future trends to found Nanuclear Energy, focusing on micro nuclear reactors—small, transportable reactors typically under 20 megawatts electric output. He was drawn to this niche because no commercial micro reactors existed globally, which presented a significant market opportunity. Nanuclear assembled world-class teams from top universities like UC Berkeley and Cambridge, and recruited executives from diverse industries. They focused on scalable, modular reactor designs that could provide clean, reliable, off-grid power for applications such as island communities, remote northern areas reliant on diesel, disaster relief, and military deployments. The company's vision aligned with global net-zero ambitions, recognizing nuclear as essential in decarbonization. Yu recounts overcoming skepticism, hedge fund short-selling, and positioning Nanuclear as the top-performing IPO of 2024 through relentless dedication and strategic partnerships, including hiring former national leaders and defense personnel.

Nuclear Technology and Safety Advances

Yu explains how next-generation nuclear technologies in micro reactors differ significantly from traditional large reactors. For example, many new designs employ TRi-structural isotropic (TRISO) fuel, coated with multiple layers of ceramic and carbon that behave like "tank armor," offering inherent safety features and passive cooling that prevent meltdown scenarios like Chernobyl. He highlights their "walk-away safe" capability, meaning reactors can safely shut down without human intervention. Nanuclear's Kronos micro modular reactor is designed to be factory-produced, modular, and scalable, with a 15 MW electric capacity suitable for powering thousands of homes or large data centers. The company is actively building demonstration projects on university campuses with reactors buried underground near dormitories, underscoring confidence in safety and regulatory processes.

Energy Security and Global Nuclear Landscape

The podcast delves into the critical issue of energy security. Yu stresses that the United States has allowed its nuclear infrastructure to deteriorate over decades, becoming reliant on foreign enriched uranium, especially from Russia which controls about 40% of global enrichment capacity. China, by contrast, has aggressively expanded nuclear reactor construction and modernization, threatening to outpace the rest of the world in nuclear energy development. This gap poses national security risks, as energy sovereignty is increasingly intertwined with geopolitical power. Yu advocates for rebuilding US capabilities rapidly to maintain competitiveness. He highlights the current administration's push to reduce regulatory barriers, supported by significant investments and executive orders encouraging a nuclear renaissance.

LIS Technologies and Laser Uranium Enrichment

A central part of Yu's current vision involves LIS Technologies, a separate company specializing in laser uranium enrichment. This technology is considered the next-generation solution after centrifuges, enabling efficient isotope separation via laser excitation. Yu describes the enrichment process moving uranium ore to uranium hexafluoride gas, which can then be purified to different enrichment levels, from low-enriched uranium for civil reactors (up to 5%) to high-assay low-enriched uranium (up to 20%), all below weapons-grade enrichment. Laser enrichment allows faster, more precise, and cheaper production compared to legacy methods dominated by Russia. LIS's core technology originated from Dr. Jeff Urkens, a 94-year-old physicist who developed laser enrichment from the late 20th century, even demonstrating operational laser centrifuge components in his garage. The technology was mothballed but recently revived and modernized by Yu's team, now headquartered in Oak Ridge, Tennessee—home to US nuclear history, linking past and present.

National Security and Regulatory Challenges

Yu emphasizes the sensitive nature of enrichment technology, insisting that LIS had to be separated from Nanuclear for national security reasons, with all management requiring top clearances. The risk of proliferation demands strict oversight, but Yu has cultivated strong relationships with regulators to ensure transparency and compliance. LIS is positioning itself to be a leading domestic supplier to reduce dependence on foreign enrichment. They are among six companies selected for a $3.4 billion government program aimed at developing low-enriched uranium fuel domestically. Yu stresses the strategic value LIS offers for future US energy independence and geopolitical advantage.

Applications and Synergies of Micro Reactors

The episode further explains diverse applications for micro reactors beyond traditional grid power. Military uses include providing power on front lines, supporting drone operations, and enabling resilient energy supply for bases vulnerable to attacks. Other applications include powering data centers—particularly important given the AI boom requiring massive and reliable energy sources—as well as supporting remote communities and disaster relief with clean energy replacing diesel generators. The modularity and factory-produced nature of reactors like Nanuclear's Kronos enable scalability and rapid deployment. Yu underscores the opportunity for a new "golden age" of energy innovation fueled by nuclear advancements.

Cultural and Personal Reflections

Throughout the conversation, Yu reflects on the cultural gaps from his immigrant upbringing, the contrast between his parents' immigrant experience and his Americanized perspective, and how those influenced his character and work ethic. He shares his commitment to philanthropy through sports and education programs aimed at inner-city youth—paying forward the support he received as a child. This long-term, authentic mindset defines both his business philosophy and personal life, emphasizing integrity, community, and legacy-building.

Future Outlook and Industry Momentum

Yu conveys optimism about the nuclear sector's trajectory, citing increased government support, regulatory streamlining, growing interest from tech and energy companies, and shifting global dynamics. He highlights upcoming milestones, such as Nanuclear's planned construction applications with the Nuclear Regulatory Commission in early 2026 and LIS's anticipated demonstration of laser enrichment capabilities. He notes that these breakthroughs align with broader shifts toward AI, digital infrastructure, and climate goals, positioning nuclear power as an essential enabler for the future.

Closing Notes on Team and Legacy

Yu credits his success to assembling world-class technical and executive teams, including his CEO who shares a story of overcoming adversity and transitioning from nuclear submarines to entrepreneurship. He points to the distinguished advisory board he has built with former U.S. energy secretaries and military generals. The episode concludes with Yu's emphasis on sincerity, grit, and long-term vision as the foundation for disrupting entrenched industries and driving transformational change.