The investment will be made through FF Science, the newly formed investing arm of Founders Fund that mainly focuses on highly advanced technology, like aeronautics, advanced computing, and nanotechnology.

It is the first investment by FF Science, which launched last month as part of Founders Fund's fifth fund worth $1 billion.

Transatomic Power, founded by two MIT grad students, says its nuclear reactor technology "consumes spent nuclear fuel cleanly and completely, unlocking vast amounts of cheap, carbon-free energy," in a white paper published earlier this year. The money will be spent on lab testing and refining computer models, the company said.