Top 3 Fusion Energy Players: Investments, Partnerships, and the Path to Commercialization
The fusion energy sector is experiencing an unprecedented surge in investment and innovation, bringing the once-theoretical promise of limitless clean energy closer to reality. Private equity funding in fusion has now exceeded $7.1 billion globally, signaling a profound shift in confidence toward its commercial viability. With over 50 fusion startups competing worldwide, the race to develop the first viable fusion power plant is more intense than ever. Among the frontrunners, TAE Technologies, Helion Energy, and Commonwealth Fusion Systems (CFS) stand out for their bold strategies, groundbreaking technologies, and high-profile collaborations. Backed by some of the world’s most influential investors and research institutions, these companies are pushing the boundaries of plasma physics, magnetic confinement, and reactor design. Their advancements could redefine the global energy landscape, unlocking a future powered by clean, virtually limitless fusion energy.
Commonwealth Fusion Systems (CFS)
Commonwealth Fusion Systems (CFS) has emerged as a leading company in the race to commercialize fusion energy. Since its inception, CFS has raised over $2 billion in funding, securing investments from prominent backers such as Bill Gates, Google, Khosla Ventures, Temasek, and Eni. A key milestone in the company’s funding journey was the Series B round in December 2021, which raised $1.8 billion. This investment was one of the largest private funding rounds in the history of fusion energy and has provided the company with the financial resources necessary to accelerate the development of its fusion technology.
CFS maintains strong collaborations with leading research institutions to advance fusion energy. The company was founded as a spin-off from the Massachusetts Institute of Technology’s Plasma Science and Fusion Center (PSFC), and it continues to collaborate closely with MIT. These efforts focus on developing advanced tokamak technology and high-temperature superconducting magnets. In addition to its partnership with MIT, CFS collaborates with global research institutions and national laboratories to enhance fusion research and material science. The company has also formed industrial alliances with firms specializing in advanced materials, engineering, and manufacturing to support the scaling of its technology.
CFS’s technological approach is centered on developing a compact tokamak reactor known as SPARC, which utilizes high-temperature superconducting (HTS) magnets made from rare-earth barium copper oxide (REBCO) tapes. A significant breakthrough was achieved in September 2021, when CFS successfully tested the world’s most powerful high-temperature superconducting magnet, reaching a magnetic field strength of 20 teslas.
The construction of SPARC began in 2021, and the company expects to complete the project by 2025. The primary objective of SPARC is to demonstrate net energy gain from fusion reactions, proving the feasibility of its tokamak-based fusion approach. Following the successful operation of SPARC, the company plans to develop ARC, a commercial fusion power plant designed for grid compatibility. The ARC reactor is expected to become operational in the early 2030s, marking a significant step toward the widespread adoption of commercial fusion energy.
CFS is focused on scalability and rapid deployment, aiming to produce compact, cost-effective fusion reactors that can be widely adopted. By leveraging its advanced technology and strategic partnerships, the company is positioning itself as a leader in the commercialization of fusion energy.
TAE Technologies
TAE Technologies has established itself as a significant player in the fusion energy sector by securing over $1.2 billion in funding from investors such as Google, Venrock, Wellcome Trust, New Enterprise Associates (NEA), and Chevron. In July 2022, the company raised an additional $250 million to accelerate the development of its next-generation fusion reactors.
The company has built strong partnerships to advance its research in fusion energy. Since 2014, TAE has collaborated with Google to integrate machine learning algorithms into plasma physics research, which has resulted in substantial improvements in optimization processes. In addition, the company has established partnerships with the University of California, Irvine, and the Princeton Plasma Physics Laboratory, as well as international researchers who contribute to advancing fusion technology.
TAE Technologies is developing a commercial fusion energy solution based on Field-Reversed Configuration (FRC) technology in a linear reactor design. The company aims to achieve clean fusion using aneutronic fuels such as hydrogen-boron (p-B11), which would significantly reduce radioactive waste. One of the company’s key milestones is the Norman reactor, which has been operational since 2017 and has achieved plasma temperatures exceeding 75 million degrees Celsius.
Building on this progress, TAE announced the Copernicus reactor in 2022, designed to reach temperatures above 100 million degrees Celsius. The construction of this reactor began in 2022, and it is expected to begin operations by 2025. Looking ahead, the company plans to launch a commercial fusion power plant, known as Da Vinci, which is targeted to be grid-ready in the early 2030s. TAE Technologies’ commercialization strategy focuses on developing reactors that produce minimal radioactive waste, positioning the company as a leader in advancing safe and sustainable fusion power.
Helion Energy
Helion Energy has raised significant capital to fund its fusion energy development. The company has received $425 million in Series F funding, with investors including Lightspeed Venture Partners, SoftBank, and Vision Fund 2. It has also received support from existing investors such as Sam Altman, Capricorn Investment Group, Mithril Capital, Dustin Moskovitz, and Nucor. With the latest round of funding, Helion has raised over $1 billion in total capital. A major milestone in the company’s funding history was the Series E round in November 2021, which raised $500 million in upfront investment.
Helion Energy has established strategic collaborations to accelerate the commercialization of its fusion technology. In May 2023, the company signed a landmark Power Purchase Agreement (PPA) with Microsoft, committing to deliver at least 50 megawatts of fusion-generated electricity by 2028. This agreement represents a significant step toward integrating fusion power into the energy grid. Additionally, Helion collaborates with national laboratories and universities to advance research in plasma physics and fusion technology.
Helion Energy’s approach to fusion power is based on Magneto-Inertial Fusion, which combines elements of magnetic confinement and inertial fusion. The company has made significant advancements in this area. In 2021, Helion’s Trenta prototype successfully achieved plasma temperatures of 100 million degrees Celsius, which is a crucial benchmark for net electricity generation. Building on this progress, Helion is currently developing the Polaris reactor, which is designed to demonstrate net electricity production.
The company has an ambitious plan to bring commercial fusion power to the grid by 2028, aligning with its agreement with Microsoft. Helion Energy’s commercial strategy focuses on the deployment of modular, container-sized fusion generators, which would allow for flexible integration into various energy systems. By strategically partnering with major energy buyers, the company aims to establish a strong market presence for its fusion technology.
In short, the development of fusion energy is accelerating, driven by TAE Technologies, Helion Energy, and Commonwealth Fusion Systems, which are securing massive investments, forging critical partnerships, and pioneering breakthrough reactor technologies. TAE Technologies is advancing aneutronic fuel-based fusion, Helion Energy is developing modular fusion generators, and Commonwealth Fusion Systems is pushing the boundaries of tokamak-based fusion with high-temperature superconducting magnets. Their collective progress is bringing commercial fusion power closer than ever. Governments are also stepping up their support, recognizing fusion’s potential to revolutionize global energy. The United States is investing $1.5 billion annually in fusion research, with $690 million earmarked for inertial confinement fusion, while Germany has pledged $1.4 billion over five years to advance fusion power plant development. South Korea is committing $900 million over the next decade to build a fusion-driven industrial ecosystem. With both private-sector innovation and public-sector funding driving momentum, fusion energy is no longer a distant dream—it is on the verge of transforming the global energy landscape. As commercialization efforts intensify, fusion power is set to deliver a sustainable, scalable, and virtually limitless source of energy, redefining how the world is powered.
