The Brief

Diablo Canyon, California’s sole remaining nuclear power plant, has been left for dead on more than a few occasions over the last decade or so, and is currently slated to begin a lengthy decommissioning process in 2029. Despite its tenuous existence, the San Luis Obisbo power plant received some serious computing hardware at the end of last year: eight NVIDIA H100s, which are among the world’s mightiest graphical processors. Their purpose is to power a brand-new artificial intelligence tool designed for the nuclear energy industry.

Pacific Gas & Electric, which runs Diablo Canyon, announced a deal with artificial intelligence startup Atomic Canyon—a company also based in San Luis Obispo—around the same time, heralding it in a press release as “the first on-site generative AI deployment at a U.S. nuclear power plant.”

For now, the artificial intelligence tool named Neutron Enterprise is just meant to help workers at the plant navigate extensive technical reports and regulations — millions of pages of intricate documents from the Nuclear Regulatory Commission that go back decades — while they operate and maintain the facility. But Neutron Enterprise’s very existence opens the door to further use of AI at Diablo Canyon or other facilities — a possibility that has some lawmakers and AI experts calling for more guardrails.

PG&E is deploying the document retrieval service in stages. The installation of the NVIDIA chips was one of the first phases of the partnership between PG&E and Atomic Canyon; PG&E is forecasting a “full deployment” at Diablo Canyon by the third quarter of this year, said Maureen Zawalick, the company’s vice president of business and technical services. At that point, Neutron Enterprise—which Zawalick likens to a data-mining “copilot,” though explicitly not a “decision-maker”—will be expanded to search for and summarize Diablo Canyon-specific instructions and reports too.

“We probably spend about 15,000 hours a year searching through our multiple databases and records and procedures,” Zawalick said. “And that's going to shrink that time way down.”

Trey Lauderdale, the chief executive and co-founder of Atomic Canyon, told CalMatters his aim for Neutron Enterprise is simple and low-stakes: he wants Diablo Canyon employees to be able to look up pertinent information more efficiently. “You can put this on the record: the AI guy in nuclear says there is no way in hell I want AI running my nuclear power plant right now,” Lauderdale said.

That “right now” qualifier is key, though. PG&E and Atomic Canyon are on the same page about sticking to limited AI uses for the foreseeable future, but they aren’t foreclosing the possibility of eventually increasing AI’s presence at the plant in yet-to-be-determined ways. According to Lauderdale, his company is also in talks with other nuclear facilities, as well as groups who are interested in building out small modular reactor facilities, about how to integrate his startup’s technology. And he’s not the only entrepreneur eyeing ways to introduce artificial intelligence into the nuclear energy field.

In the meantime, questions remain about whether sufficient safeguards exist to regulate the combination of two technologies that each have potential for harm. The Nuclear Regulatory Commission was exploring the issue of AI in nuclear plants for a few years, but it’s unclear if that will remain a priority under the Trump administration. Days into his current term, Trump revoked a Biden administration executive order that set out AI regulatory goals, writing that they acted “as barriers to American AI innovation.” For now, Atomic Canyon is voluntarily keeping the Nuclear Regulatory Commission abreast of its plans.

Tamara Kneese, the director of tech policy nonprofit Data & Society's Climate, Technology, and Justice program, conceded that for a narrowly designed document retrieval service, “AI can be helpful in terms of efficiency.” But she cautioned, “The idea that you could just use generative AI for one specific kind of task at the nuclear power plant and then call it a day, I don't really trust that it would stop there. And trusting PG&E to safely use generative AI in a nuclear setting is something that is deserving of more scrutiny.”

For those reasons, Democratic Assemblymember Dawn Addis—who represents San Luis Obispo—isn’t enthused about the latest developments at Diablo Canyon. “I have many unanswered questions of the safety, oversight, and job implications for using AI at Diablo,” Addis said. “Previously, I have supported measures to regulate AI and prevent the replacement and automation of jobs. We need those guardrails in place, especially if we are to use them at highly sensitive sites like Diablo Canyon.”

How AI came to SLO

Before Lauderdale moved into artificial intelligence and nuclear energy, he founded a health care software company called Voalte, which was designed to help hospital staff communicate over iPhones, reducing their reliance on loudspeaker paging and desktop computer systems. At the time, circa 2008, Lauderdale said his pitch was met with worries and resistance from hospital staff. He likes to draw parallels between that experience, which culminated in 2019 when he sold his company to a hospital bed manufacturer for $180 million, and the pushback he’s heard about Atomic Canyon.

In 2021, Lauderdale moved to San Luis Obispo so he, his wife, and kids could be closer to his wife’s family in Northern California. Lauderdale told CalMatters he didn’t realize how close Diablo Canyon was to his new home until after he relocated. It was through meeting Diablo Canyon workers out in the community, he says, that he learned more about nuclear energy and landed on his next startup idea.

Atomic Canyon launched in 2023 with a task of downloading roughly 53 million pages of publicly available Nuclear Regulatory Commission documents, which encapsulate all of America’s nuclear energy fleet and are available on a database called ADAMS. That process started around January 2024, after Lauderdale gave the Nuclear Regulatory Commission a heads-up about what Atomic Canyon was planning to do: “I reached out to [the commission] just to say, hey, I'm Trey Lauderdale, American citizen, entrepreneur. We're going to start building AI in the nuclear space, and we just wanted to make sure the NRC was aware that when they see all these downloads, it's not a foreign actor or someone trying to do anything bad to their system.”

Lauderdale said the commission supported Atomic Canyon’s efforts. After downloading the data, Atomic Canyon partnered with the Department of Energy’s Oak Ridge National Laboratory in Tennessee to kick off research and development. The lab houses the Frontier supercomputer, which was the world’s fastest when it debuted two years ago. Atomic Canyon used Frontier to build a form of AI that can perform “sentence-embedding models,” which Lauderdale says are capable of processing nuclear jargon and are less likely to “hallucinate,”or answer a question using fabrications.

“You basically teach the artificial intelligence how to understand nuclear words, their context, what different acronyms mean,” he said.

In the spring of 2024, Lauderdale and PG&E representatives kicked off formal discussions about how Atomic Canyon could be of use at Diablo Canyon. PG&E soon invited Atomic Canyon staff to visit the nuclear facility, where they shadowed employees for a few weeks, “observing where there were operational inefficiencies that we could try to target with AI,” Lauderdale said.

Then, in September 2024, Atomic Canyon announced the completion of testing on its AI, referred to as “FERMI”; these models, which are open-source, are what collectively make up the Neutron Enterprise software. A few months later, in November, came the first-of-its-kind announcement with PG&E.

How Neutron Enterprise works

PG&E brought in NVIDIA hardware to Diablo Canyon to run FERMI. Zawalick and Lauderdale both told CalMatters that the Neutron Enterprise software is being installed without cloud access so that sensitive, internal, documents don’t leave the site. Zawalick said their data storage policies meet all Nuclear Regulatory Commission and Department of Energy nuclear information requirements, and will be continuously tested and inspected.

Initial Neutron Enterprise users are currently only using the software to search through publicly available regulatory data. PG&E and Atomic Canyon hope to initiate the next phase of Neutron Enterprise’s rollout in the third quarter of 2025, when more on-site employees will be able to use the service, and it will be able to search for and summarize internal documents by utilizing optical character recognition (which allows more documents to be indexed), and retrieval-augmented generation (which allows more flexible querying).

According to Lauderdale, the use of artificial intelligence to speed up document searches isn’t risky. If AI fails to find the information sought by a worker, the person can “just fall back to the previous way they would search,” he said, referring to sifting through multiple on-site databases and sometimes manually pulling paper files.

Pacific Gas & Electric vehicles are parked at the PG&E Oakland Service Center in Oakland on Jan. 14, 2019.

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Ben Margot

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AP Photo

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Neutron Enterprise also generates short summarizations of documents while users are searching databases, and it’s possible those summarizations could produce incorrect information, too — but they would not alter the actual contents/instructions contained within the documents that are read over by workers.

CalMatters asked a number of state lawmakers — especially those near Diablo Canyon — what they think of Atomic Canyon’s first-of-its-kind partnership with PG&E. The consensus response was positive, though tailored to Neutron Enterprise’s currently limited functionality.

Malibu Democratic Sen. Henry Stern, a member of the Senate Energy Committee, told CalMatters he’s “reticent to rain on AI tools that can do better grid management,” so long as proper safety protocols are followed. Democratic Sen. John Laird, who represents San Luis Obispo, took an even-keel stance: “As AI integration expands, so does its energy demand… Balancing technological advancement with public safety, environmental stewardship, and regulatory oversight will be critical in shaping AI’s role in our state’s energy future,” he said. San Francisco Sen. Scott Wiener, whose ambitious AI safety legislation was vetoed by the governor last year, agrees with his Democratic colleagues: “If AI can help improve the day-to-day efficiencies of Diablo Canyon, that's great.”

Out of five San Luis Obispo County Board of Supervisors, three responded to requests for comment. Supervisor Bruce Gibson said that “using AI to access and organize required information in this situation makes sense,” but he stressed the need for transparency and public updates from PG&E. Supervisor Heather Moreno said that it’s a good thing PG&E will be taking “advantage of a ‘supercharged’ search engine… As it will not be used for operations, this appears to be a good first step in using AI at Diablo Canyon.” And Supervisor Dawn Ortiz-Legg, a former PG&E employee, said she was “encouraged” that Diablo Canyon was working with Atomic Canyon “to navigate the enormous amounts of data collected from thousands of pages of audits and reports.”

Varying rules and regulations

However innocuous the use of AI at Diablo Canyon today, there are big-picture concerns about how the technology could later be used there and at other facilities. “I think we have to be really careful when we talk about broader AI decision-making,” Wiener said. “That's why it's really, really important to beef up government capacity to set standards around use of AI in sensitive contexts such as a nuclear power plant.”

In November 2024, Nuclear Regulatory Commission Inspector General Robert J. Feitel came to the same conclusion. He identified “planning for and assessing the impact of Artificial Intelligence and Machine Learning on nuclear safety and security” as one of the nine major challenges the agency faced. The month prior, a commission-sponsored report by the Southwest Research Institute looked into artificial intelligence-related “regulatory gaps” in the nuclear energy industry. It found fewer than 100 gaps, but also noted that “no practical AI standards were identified” from outside sources that could help address those gaps. The report recommended developing a number of AI-specific guides.

Atomic Canyon and PG&E appear to be keeping the Nuclear Regulatory Commission in the loop on their own accord. “I wouldn't claim we have an official relationship with the NRC, but we make sure to brief them on what we're doing, because, being newer in the nuclear industry, surprises are bad,” Lauderdale said. He believes that the nuclear energy industry’s cautious approach will, in itself, act as a “natural buffer” against overly invasive or dangerous AI integrations, though he conceded that “as we start to traverse into applications that do introduce risk, we absolutely will want guardrails and regulation to make sure that AI is properly deployed.”

When CalMatters first spoke with PG&E’s Zawalick in December, she mentioned she’d just recently met with the Nuclear Regulatory Commission’s AI working group, an advisory committee of sorts. Since then, she hasn’t had further discussions with the commission about AI regulations, she recently told CalMatters.

And the Diablo Canyon Independent Safety Committee, a state-appointed safety group that inspects the nuclear facility and provides recommendations about its operations, first learned about PG&E’s deal with Atomic Canyon through media reports, the committee’s legal counsel Bob Rathie told CalMatters. In December 2024 and January 2025, a committee representative participated in two fact-finding visits about Neutron Enterprise, meeting with PG&E workers to learn more about the software. The committee concluded from those visits that Diablo Canyon’s use of artificial intelligence is “positive,” and they have no safety concerns at this time.

What happens next?

Lauderdale spoke to CalMatters while traveling to another nuclear facility, though he couldn’t reveal which one. He said that Atomic Canyon is “in discussions” with “many other nuclear organizations,” and that some “really exciting announcements” will come later this year. Through Atomic Canyon’s partnership with Diablo Canyon, he wants to demonstrate a proof of concept for existing nuclear facilities, as well as companies interested in building or re-commissioning nuclear facilities. He hopes Diablo Canyon’s lifecycle is expanded beyond the current decommissioning timeline, but if it’s not, his software can be used for the facility’s decommissioning process, he said.

“As we gain more trust in the product and build out more capabilities, we will pick other non-risky activities that will take off one-by-one, and we'll keep creating more value with this new technology,” he said.

Responding to questions about whether the rollout of AI at Diablo Canyon has had sufficient oversight, Lauderdale reiterated that his startup product does not have a significant operational role.

“I consider our company the leader in deploying AI and nuclear,” he said, before giving a future-facing assessment that left the door just slightly ajar: “and I think we will not have AI running nuclear power plants for a very long time.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

By the end of January, students will have returned to two of the three public school campuses burned in the Palisades Fire one year prior, though their classrooms are temporary.

Palisades Charter High School students are scheduled to return to their campus Jan. 27. They’ve been in a refurbished Santa Monica department store since April.

“ I am just overwhelmed with gratitude for the constant support that has been shown for our school and for our families, our teachers, all of our administrators and staff,” said Principal Pamela Magee at a press conference Tuesday with Los Angeles Unified leaders. Pali High is an independent charter high school located on district property.

In June, the LAUSD Board approved a $604 million plan to rebuild the high school, as well as two burned district elementary schools— Marquez and Palisades.

Superintendent Alberto Carvalho said the three campuses’ new buildings will open in 2028— shaving two years off of the original 5-year timeline.

“ These projects will come in on time or ahead of schedule,” Carvalho said. “These projects will come in at or below budget, and these projects will honor the resilience, the determination, the courage and yes, the suffering and the sacrifice of the community of the Palisades.”

About the costs and the design

The district plans to use money from the $9 billion bond voters approved in 2024 to help pay for the rebuild, but also anticipates some reimbursement from its insurer and FEMA.

District-contracted architects are finalizing their designs and plan to submit to the state for approval in the spring, said Chief Facilities Executive Krisztina Tokes. She said the plan is to rebuild with future environmental risks in mind.

“ From the earliest design stages, wildfire resiliency has been treated as a core requirement and not an add-on,” Tokes said. For example, using fire-resistant concrete blocks, installing enhanced air filtration systems and planting shade trees where they won’t hang over buildings.

Environmental testing preceded students’ return to the fire-impacted campuses. Director of the Office of Environmental Health and Safety Carlos Torres said the district continues to monitor air quality through its network of sensors and is developing a plan for periodic testing.

“We just can't just walk away,” Torres said.

Enrollment is down at all three schools compared to before the fires, but district leaders say they are confident families will return to the rebuilt campuses.

“I find it hard to believe that this community won't come back to its former glory,” said Board Member Nick Melvoin, who represents the Palisades. “We gave a lot of thought in an accelerated timeline to rebuilding for the next century.”

Marquez Charter Elementary

What’s the damage? The campus is a “total loss.” More than three dozen classrooms, administration buildings, the school’s auditorium and playground burned down.

How much has LAUSD budgeted to rebuild? $202.6 million

Where are the students? Students returned in September to portables covering about one-third of the campus. There’s also two playgrounds, a garden, library and shaded lunch area. Enrollment has dropped 60% compared to before the fire from 310 to 127 students.

What’s next? District-contracted architects are finalizing their designs and plan to submit to the state for approval in the spring.

Palisades Charter Elementary School teacher Ms. Davison talks with her students in their new classroom on the campus of Brentwood Elementary Science Magnet last year.

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Brian van der Brug

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Los Angeles Times via Getty Images

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Palisades Charter Elementary

What’s the damage? About 70% of the campus was destroyed including 17 classrooms, the multipurpose room and play equipment.

How much has LAUSD budgeted to rebuild? $135 million

Where are the students? Students continue to share a campus with Brentwood Science Magnet. Enrollment has dropped 25% compared to before the fire from 410 to 307 students.

What’s next? District-contracted architects are finalizing their designs and plan to submit to the state for approval in the spring.

Palisades Charter High School, pictured in December 2025, is scheduled to reopen to students Jan. 27, 2026.

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Kayla Bartkowski

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Los Angeles Times via Getty Images

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Palisades Charter High School

What’s the damage? About 30% of the campus was destroyed including 21 classrooms, storage facilities and the track and field.

How much has LAUSD budgeted to rebuild? $266 million

Where are the students? Students started the school year in a renovated Sears building in downtown Santa Monica. Enrollment has dropped 14% compared to before the fire, from 2,900 to 2,500 students.

What’s next? Classes will resume at the main campus Tues. Jan. 27 in a combination of surviving buildings and 30 new portable classrooms.

The Trump administration says it’s planning to freeze about $10 billion in federal support for needy families in California and four other Democrat-run states, as the president announced an investigation into unspecified fraud in California.

The plans come on the heels of the Trump administration announcing a freeze on all federal payments for child care in Minnesota, citing fraud allegations against daycare centers in the state.

The state’s Democrat governor, Tim Walz — who ran for vice president against Donald Trump’s ticket in 2024 — announced Monday he was dropping out of running for reelection. He pointed to fraud against the state, saying it’s a real issue while alleging Trump and his allies were “seeking to take advantage of the crisis.”

On Monday, the New York Post reported that the administration was expanding the funding freeze to include California and three other Democrat-led states, in addition to Minnesota. Unnamed federal officials cited “concerns that the benefits were fraudulently funneled to non-citizens,” The Post reported.

Early Tuesday, President Trump alleged that corruption in California is worse than Minnesota and announced an investigation.

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP,” the president wrote on his social media platform Truth Social.

He did not specify what alleged fraud was being examined in the Golden State.

LAist has reached out to the White House to ask what the president’s fraud concerns are in California and to request an interview with the president.

“For too long, Democrat-led states and governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said an emailed statement from Andrew Nixon, a spokesperson for U.S. Department of Health and Human Services, which administers the federal childcare funds.

“Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”

Gov. Gavin Newsom’s press office disputed Trump’s claim on social media, arguing that since taking office, the governor has blocked $125 billion in fraud and arrested “criminal parasites leaching off of taxpayers.”

Criminal fraud cases in CA appear to be rare for this program

Defrauding federally funded programs is a crime — and one LAist has investigated, leading to one of the largest such criminal cases in recent years against a California elected official, which surrounded meal funds.

When it comes to the federal childcare funds that are being frozen, the dollar amount of fraud alleged in criminal cases appears to be a tiny fraction of the overall program’s spending in California.

A search of thousands of news releases by all four federal prosecutor offices in California, going back more than a decade, found a total of one criminal case where the press releases referenced childcare benefits.

That case, brought in 2023, alleged four men stole $3.7 million in federal childcare benefits through fraudulent requests to a San Diego organization that distributed the funds. All four pleaded guilty, with one defendant sentenced to 27 months in prison and others sentenced to other terms, according to authorities.

It appears to be equivalent to one one-hundredth of 1% of all the childcare funding California has received over the past decade-plus covered by the prosecution press release search.

Potential impact on California families

The plans call for California, Minnesota, New York, Illinois and Colorado to lose about $7 billion in cash assistance for households with children, almost $2.4 billion to care for children of working parents, and about $870 million for social services grants that mostly benefit children at risk, according to unnamed federal officials speaking to the New York Times and New York Post.

In the largest category of funding, California receives $3.7 billion per year. The program is known as Temporary Assistance for Needy Families, or TANF.

 ”It's very clear that a freeze of those funds would be very damaging to the children, families, and providers of California,” said Stacy Lee, who oversees early childhood initiatives "at Children Now, an advocacy group for children in California.

 ”It is a significant portion of our funds and will impact families and children and providers across the whole state,” she added. “It would be devastating, in no uncertain terms.”

About 270,000 people are served by the TANF program in L.A. County — about 200,000 of whom are children, according to the county Department of Public Social Services.

“Any pause in funding for their cash benefits – which average $1000/month - would be devastating to these families,” said DPSS chief of staff Nick Ippolito.

Ippolito said the department has a robust fraud prevention and 170-person investigations team, and takes allegations “very seriously.”

It remains to be seen whether the funding freeze will end up in court. The state, as well as major cities and counties in California, has sued to ask judges to halt funding freezes or new requirements placed by the Trump administration. L.A. city officials say they’ve had success with that, including shielding more than $600 million in federal grant funding to the city last year.

A union representing California childcare workers said the funding freeze would harm low-income families.

“These threats need to be called out for what they are: direct threats on working families of all backgrounds who rely on access to quality, affordable child care in their communities to go to work every day supporting, and growing our economy,” said Max Arias, chairperson for the Child Care Providers United, which says it represents more than 70,000 child care workers across the state who care for kids in their homes.

“Funding freezes, even when intended to be temporary, will be devastating — resulting in families losing access to care and working parents facing the devastating choice of keeping their children safe or paying their bills.”

Federal officials planned to send letters to the affected states Monday about the planned funding pauses, the New York Post reported. As of 3 p.m. Tuesday, state officials said they haven’t gotten any official notification of the funding freeze plans.

“The California Department of Social Services administers child care programs that help working families afford safe, reliable care for their children — so parents can go to work, support their families, and contribute to their communities,” said a statement from California Department of Social Services spokesperson Jason Montiel.

“These funds are critical for working families across California. We take fraud seriously, and CDSS has received no information from the federal government indicating any freeze, pause, or suspension of federal child care funding.”