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Nuclear fusion startup CFS just raised $1.8 billion in biggest fusion deal ever

The deal comes as the nuclear fusion space attracts more and more energy, despite the science still being early days.
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Commonwealth Fusion Systems

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Commonwealth Fusion Systems (CFS), a nuclear fusion startup spun out of MIT, just raised the biggest-ever funding round for a nuclear-fusion company—a financial milestone that it hopes will spark a scientific one.

CFS announced a $1.8 billion round on Wednesday, led by (who else?) Tiger Global Management and Bill Gates. That’s more than 3x bigger than the previous record of $500 million, which was set by Helion…a month ago.

CFS, which has now raised ~$4 billion since its 2018 founding, will use the money to try and build a net-energy-producing demonstration reactor by 2025.

Reminder: Energy-producing nuclear fusion has been an elusive, but captivating, goal since Soviet scientists developed the first fusion device, dubbed a “tokamak,” in the 1950s.

  • In theory, fusion can produce significantly higher quantities of clean energy with far less waste and risk than fission.
  • One problem? No one has been able to produce more energy from a fusion reactor than it takes to create a reaction.

But the record-breaking rounds from CFS and Helion are simply two eye-popping examples of an increasingly energetic nuclear-fusion industry. There are currently 35+ businesses operating in the space, per the Fusion Industry Association, more than double the 15 in 2017. Another fusion company, General Fusion, also raised a $130 million round this week.

Looking ahead: CFS also said it will begin working on a commercial fusion plant that would produce electricity early next decade. Some fusion experts think it’ll take much longer, though: Tony Donné, program manager at research consortium EUROfusion, told the WSJ that fusion power probably won’t make it to the grid for another two or three decades.

Keep up with the innovative tech transforming business

Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.