Nuclear fusion projects have raised a record $4.5 billion. Is a new boom underway?

Investment in controlled nuclear fusion has risen by nearly 70% over the past year, reaching a record $4.5 billion. More than half of that amount was raised by four companies—Commonwealth Fusion Systems, Inertia Enterprises, Helion Energy, and Proxima Fusion— according to Bloomberg.

The inflow of capital reflects investors’ growing confidence that the industry is moving closer to building commercial power plants. Most industry players expect the first such plant to begin operations by 2040, the agency reports, citing data from the U.S. nonprofit Fusion Industry Association (founded in 2018 to promote projects aimed at accelerating the advent of fusion energy).

To initiate a nuclear fusion reaction, it is necessary to replicate the conditions inside the Sun’s core, where extreme temperatures and pressures cause atoms to fuse into new elements. Interest in the technology grew following a 2022 laboratory experiment in which researchers obtained more energy from the reaction than was required to initiate it. However, Bloomberg notes that this result has not yet been replicated outside the laboratory.

Another incentive for investors is the rapid growth in electricity consumption in the U.S. A significant portion of this new demand is driven by data centers for artificial intelligence, which require clean energy sources capable of operating around the clock. In theory, controlled fusion could provide nearly unlimited carbon-free power generation, the article states.

Starting this week, investors have the opportunity to make a direct stock market investment in the industry. On July 13, Canada’s General Fusion began trading on Nasdaq under the ticker symbol GFUZ, becoming the first publicly traded company specializing in nuclear fusion, according to Barron’s. Amazon founder Jeff Bezos first invested in the company in 2011.

General Fusion uses an unusual approach. Most startups in this industry attempt to continuously contain plasma using powerful superconducting magnets. At General Fusion, mechanical pistons act on a liquid metal, causing the cavity containing the magnetized plasma to compress rapidly. Dan Branner, former chief technical officer of Commonwealth Fusion Systems, described this approach as “steampunk” in an interview with the Financial Times.

General Fusion’s stock market debut showed just how risky such a bet is: the spread between the lowest and highest prices during the initial trading session exceeded 60%, reflecting both speculative interest and the uncertainty surrounding high-tech startups with no revenue. Nevertheless, General Fusion managed to raise approximately $150 million during its IPO, and the company expects this funding to last until 2028. It plans to launch its first commercial reactor by 2035.

Private developers have not yet demonstrated that their projects are capable of generating more energy than is required to sustain the plasma. According to Branner, General Fusion’s latest results “fall far short of the level the company needs to reach to build a commercially viable facility.” He added that it is “very hard to believe” that the stated timelines are realistic.

General Fusion may soon no longer be the only fusion energy company listed on the stock market. California-based TAE Technologies is preparing to go public following its merger with Trump Media & Technology Group—the deal is expected to close in October. Google is among TAE’s investors, while OpenAI CEO Sam Altman has invested in Helion.

This article was AI-translated and verified by a human editor