Fusion's Billion-Dollar Bet: High Stakes and Unproven Power
AI-generated image · US National Wire
Private investors have poured billions into fusion startups, but the industry is still chasing commercial breakeven.
Private investment in fusion energy has surged as startups attempt to harness the sun's nuclear reactions to disrupt trillion-dollar energy markets, as TechCrunch first reported. According to data provided to TechCrunch by FusionX, several companies have raised over $100 million in committed capital, fueled by advances in AI, computer chips, and superconducting magnets.
Commonwealth Fusion Systems (CFS) leads the pack, having raised $3.94 billion, including a $1 billion round closed in July. Backed by Bill Gates, The Engine, and Breakthrough Energy Ventures, CFS is building its Sparc plant in Massachusetts, which CEO Bob Mumgaard says should reach scientific breakeven by 2027. The company later plans to build Arc, a 400-megawatt commercial plant in Virginia, with Google agreeing to buy half its output.
Helion, based in Everett, Washington, has raised $3.2 billion from investors including Sam Altman, SoftBank Vision Fund 2, BlackRock, KKR, Reid Hoffman, Capricorn Investment Group, and Peter Thiel’s Mithril Capital Management. Helion targets electricity production by 2028 for its first customer, Microsoft. A June Series G round valued the company at $15.5 billion.
Meanwhile, TAE Technologies has raised $1.65 billion from investors such as Chevron, Google, and New Enterprise. In December 2025, the company announced an all-stock merger with Trump Media & Technology Group, valuing the combined entity at $6 billion. The company will be led by co-CEOs Michl Binderbauer and interim CEO Kevin McGurn.
While a U.S. Department of Energy lab achieved scientific breakeven in late 2022, TechCrunch notes that the industry remains far from commercial breakeven, where a facility produces more power than it consumes in total.