Authored by Alex Kimani via OilPrice.com,
Shares of Trump Media & Technology Group Corp. (NYSE:DJT) have surged nearly 70% after the company agreed to merge with fusion startup TAE Technologies in a $6 billion deal. Under the terms of the deal, shareholders of each company will own roughly half of the combined entity on a fully diluted equity basis. Trump Media, majority owned by U.S. President Donald Trump, will now become the holding company for TAE Power Solutions and TAE Life Sciences alongside current holdings Truth Social, Truth+ and Truth.Fi.
Founded in 1998, TAE Technologies aims to deploy commercial, utility-scale fusion energy. The company plans to commence construction of its first fusion power plant in 2026, expected to generate 350-500 MWe.
TAE Technologies has raised more than $1.3 billion thanks to backing by high-profile investors, including Google, Chevron Technology Ventures, Goldman Sachs, and Sumitomo Corporation of America. The company plans to employ neutral particle beams and magnets in its fusion reactors instead of standard lasers.
Widely regarded as the Holy Grail of low-carbon electricity, nuclear fusion works by ‘smashing’ together hydrogen atoms to create helium and release energy through the famous E=MC2 mass-energy equivalence. Fusion is the process by which stars, including our own sun, generate vast amounts of energy in their cores.
Nuclear fusion is able to generate four times as much energy as nuclear fission from the same mass of fuel. Fusion reactors are highly regarded not only because of their massive power output but also because they produce much less radioactive waste and cannot melt down, unlike fission reactors, where uncontrolled chain reactions can be catastrophic.
Nuclear fission is a process where a nucleus (usually of a heavy atom like uranium) splits into two smaller nuclei, releasing a large amount of energy and additional neutrons. These released neutrons can then induce further fission events, leading to a chain reaction.
After a long period of stagnation, nuclear fusion is hot again thanks to the ongoing global nuclear renaissance amid surging energy demand. Back in August, Sam Altman-backed Helion Energy began construction of its first commercial nuclear fusion plant in Chelan County, Washington. Helion’s project has already undergone rigorous environmental assessments as part of the Environmental Policy Act (SEPA) process by the State of Washington.
Two years ago, Microsoft Inc. (NASDAQ:MSFT) signed a power purchase agreement (PPA) with Helion Energy to buy electricity from the nuclear fusion startup beginning in 2028. Constellation Energy (NASDAQ:CEG) was appointed as the marketer for the zero-carbon electricity Helion plans to generate at its Orion plant.
Helion has scored some important fusion milestones, with its Trenta prototype the first private reactor to achieve nuclear fusion on a commercial scale. Trenta–Helion’s sixth fusion prototype–has been able to achieve a critical fuel temperature of 180 million degrees Fahrenheit, widely considered a benchmark for commercial fusion viability.
Testing of the prototype began in 2019 and concluded in January 2023, during which the facility completed nearly 10,000 high-power pulses and operated under vacuum for 16 months. Trenta uses a pulsed magneto-inertial fusion (MIF) approach to generate fusion energy. It accelerates two Field Reversed Configurations (FRCs) of plasma to collide, compressing them to fusion temperatures and directly recapturing the released energy as electricity, bypassing the traditional steam turbine cycle.
China Enters Fusion Race
That said, China has entered the fusion race with a bang. Whereas the U.S. was among the world’s first countries to bet big on this futuristic gambit, China’s foray came much later. China has been making rapid progress over the past decade, and now owns more fusion patents than any country according to industry data published by Nikkei. Further, China is building projects at record speed.
China’s private fusion energy company, Energy Singularity, has achieved several significant breakthroughs in developing high-temperature superconducting (HTS) tokamak devices aimed at accelerating the commercialization of fusion energy. In June 2024, the company’s HH70 device successfully achieved its “first plasma,” making it the first and only operational full high-temperature superconducting tokamak built by a commercial company globally. The HH70 device was designed and constructed in under two years, a world record for the fastest development and construction of a superconducting tokamak.
In early 2025, Energy Singularity’s large-bore D-shaped HTS magnet, named “Jingtian” generated a world-record magnetic field of 21.7 tesla in a test. This surpassed the previous record held by a U.S. company/MIT collaboration and is a critical step for developing smaller, more cost-effective fusion reactors.The company is now developing its next-generation device, the HH170, which is planned for completion by 2027 and aims to achieve a tenfold energy gain (Q>10), a crucial milestone for commercial viability.
Interestingly, just like it did with AI models, China is pulling off impressive fusion milestones with much less. To wit, Energy Singularity has so far received just $112 million in private investment, significantly less than U.S. fusion startups. For some context, Charles Seife, director of the Arthur L. Carter Institute of Journalism at New York University, estimates that France-based International Thermonuclear Experimental Reactor (ITER) project costs have surpassed €20 billion ($21.8 billion), more than four times the original budget of €5 billion (then $5.5 billion) and nearly a decade late from its 2016 delivery date.
That said, Energy Singularity is not the only fusion startup that’s pursuing small reactor designs. Deven, Massachusetts-based Commonwealth Fusion Systems is collaborating with MIT to build its small fusion reactor.
The company has achieved major breakthroughs in fusion energy by developing world-record High-Temperature Superconducting (HTS) magnets, enabling smaller, more powerful tokamaks like their SPARC device, which aims to be the first to produce net energy. They’ve secured massive funding (around $3 billion), validated their magnet technology with the U.S. DOE, and demonstrated key magnet performance milestones. CFS is now building its SPARC reactor to prove net-energy fusion, paving the way for its first commercial power plant, ARC.
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