The US government will invest $175 million in Helion, a speculative fusion energy company backed by Josh Kushner, Peter Thiel, and Sam Altman. The funding comes from a Department of Commerce pool made available under the Chips Act, in exchange for a non-voting equity stake. This is the largest single commitment by the department for a fusion company to date.
The deal reflects the Trump administration's interventionist approach to supporting tech firms against foreign competition. Helion aims to commercialize fusion technology, which replicates the Sun's energy by combining atomic nuclei in superheated plasma. Despite billions in investment, sustained electricity production remains unrealized.
Helion plans to open the world's first fusion power plant by 2028 and supply Microsoft. Executives warn private firms have set overly ambitious targets. The technology faces frequent setbacks, with a running joke that fusion is always "just a decade away." Helion, based in Everett, Washington, will use part of a $389 million award to develop high-voltage semiconductors and energy power modules.
The company was valued at $15.5 billion in a June funding round led by Josh Kushner's Thrive Capital. Other investors include Mithril Capital, co-founded by Thiel, and Soft Bank Vision Fund 2. Open AI CEO Altman owns roughly one-third of Helion's shares.
Commerce Secretary Howard Lutnick stated the investment accelerates American semiconductor innovation to enhance domestic energy resources.
Source: Financial Times Companies · Summarized by HeadlinesBriefing