Driven by surging energy demand and the explosive growth of AI computing power, controlled nuclear fusion—often dubbed the "holy grail" of clean energy—is rapidly transitioning from laboratories to capital markets. Recent developments, including a multibillion-dollar U.S. merger and breakthroughs in critical magnet technology by Chinese startups, have intensified the global race toward fusion commercialization.
The latest spotlight falls on Trump Media & Technology Group Corp. (DJT), which reportedly agreed to a $6 billion merger with fusion startup TAE Technologies on the 23rd. The news sent DJT shares soaring nearly 70%. Under the deal, shareholders of both companies will hold roughly equal stakes in the merged entity, with Trump’s media group becoming the parent company of TAE Power Solutions and TAE Life Sciences.
This transaction not only triggered market volatility but also signaled heightened capital commitment to fusion. Founded in 1998, TAE Technologies counts Google, Goldman Sachs, and Chevron among its backers. It plans to use neutral particle beams and magnets instead of lasers, targeting 2026 for construction of its first commercial-scale fusion plant.
Meanwhile, China is gaining ground. Shanghai-based Energy Singularity achieved a 21.7-tesla superconducting magnet in March, surpassing records held by MIT and Commonwealth Fusion Systems (CFS). The firm aims to build a next-gen tokamak by 2027 with 10x energy gain—a key commercial milestone.
**U.S. Fusion Investment Boom** The sector’s revival has attracted tech giants. Helion Energy, backed by OpenAI’s Sam Altman, began constructing a commercial plant in Washington last August after passing environmental reviews. Microsoft signed a 2028 power purchase agreement (PPA) with Helion, while Constellation Energy will market its zero-carbon electricity. Helion’s "Trenta" prototype hit 180 million°F using pulsed magneto-inertial fusion (MIF), bypassing steam turbines to directly convert energy.
CFS, collaborating with MIT, has raised $3 billion to develop high-temperature superconducting magnets for its SPARC and ARC reactors.
**China’s Rapid Advance** China now leads in fusion patents. Beyond Energy Singularity, Chengdu’s Hanhai Fusion pursues modular linear devices, while Xi’an-based Stellar Fusion built an experimental reactor in just 279 days. Investors like Sequoia China are exploring ancillary applications, such as medical isotope production.
**Challenges Remain** Despite progress, grid-scale fusion faces hurdles: most devices operate for mere seconds, materials must withstand extreme conditions, and net energy gain requires tighter system coordination. Funding gaps persist—U.S. startups have raised ~$5B in five years versus China’s ~$500M—but Chinese firms showcase efficiency.
As Lightboat Capital’s Kang Jianshu notes, fusion demands long-term capital (8–10 years). Yet with advances in HTS materials and AI, timelines are accelerating.
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