Fusion is the dream of limitless clean energy. But before a single fusion plant gets built, you first need someone to buy the power. And the first people willing to sign a contract for electricity that doesn't exist yet weren't utilities — they were tech giants like Microsoft and Google, starving for clean, 24-hour power to feed their AI data centers. This lesson is about the "demand side" of fusion — and why it's still a bet on the future, not a thing that's real today.
UBS Flags AI Science Shift as Investment Theme After OpenAI Proof
UBS Wealth Management says artificial intelligence is moving beyond text generation into scientific research, opening investment opportunities across AI infrastructure, pharmaceuticals, nuclear fusion, industrial materials and utilities. The shift was highlighted by OpenAI's recent mathematical proof related to the Navier-Stokes equations, a centuries-old fluid dynamics problem and one of seven Millennium Prize Problems, which OpenAI tackled using 10,000 autonomous AI agents working in parallel for 88 hours before formalizing the proof with Lean, a system for machine-checked mathematical validation. In pharmaceuticals, multi-agent AI systems can simulate millions of protein variations in the cloud, and more than 170 AI-designed programs are already in development or clinical evaluation, including Phase III trials. In nuclear fusion, reinforcement-learning systems can predict plasma disruptions around 200 milliseconds before they occur and adjust magnetic coils thousands of times per second, while AI models in materials science can test millions of elemental combinations daily in search of properties for lighter, higher-density batteries, lower-heat computing hardware and potential room-temperature superconductors. The broader investment case centers on AI becoming a tool for automating scientific research rather than simply generating content, with companies exposed to AI infrastructure, pharmaceuticals, industrial materials and utilities positioned to benefit as these technologies move toward commercial applications.
Realta Fusion and MGE Partner to Explore 200-MWe Fusion Plant in Wisconsin
Realta Fusion, the world's leading magnetic mirror fusion energy company, announced a strategic partnership with Madison Gas and Electric (MGE) and its parent company, MGE Energy, Inc., to explore joint development of a 200-megawatt electric (MWe) fusion energy power plant in Wisconsin. MGE Energy has made a direct equity investment in Realta and will provide equipment, engineering, technical support, and assistance with siting, permitting, interconnection, and financing. Realta CEO Kieran Furlong called the agreement a clear signal that fusion's time is coming, while MGE Chairman, President, and CEO Jeff Keebler emphasized the utility's commitment to net-zero carbon electricity by 2050. The plant would be a first-of-its-kind investment in next-generation carbon-free energy technology, and the partnership builds on Realta's recent plans to lease about 250,000 square feet at OM Station, the former Oscar Mayer site in MGE's service territory.
Global private investment in nuclear fusion hit a record $4.48 billion in 2025, up 69% from a year earlier, as major energy companies like Eni, Equinor, Chevron, Shell, and Cenovus ramp up their commitments. Eni plans to deploy a commercial fusion power plant in Europe by the early 2040s, building on its investment in Commonwealth Fusion Systems and a $1 billion agreement to buy electricity from the startup's first U.S. plant. Eni is also forming a joint venture with the UK Atomic Energy Authority to develop fuel systems for fusion reactors, targeting a large-scale tritium fuel-cycle facility by 2028. Commonwealth Fusion Systems raised another $1 billion in July, bringing its total funding to $4 billion, and its planned 400-MW ARC facility in Virginia is the first fusion project to apply for grid interconnection. Chevron has backed TAE Technologies and Zap Energy, while Shell invested in Zap's $130 million Series D round, and Cenovus's early bet on General Fusion is moving toward a Nasdaq listing.
Global Private Nuclear Fusion Investments Surge 69% to Record $4.48 Billion in 2025
Global private investments in nuclear fusion hit a record $4.48 billion in 2025, a 69% surge driven by AI data center energy demands and rising energy security concerns. The Fusion Industry Association reports that about 71% of fusion companies now expect to deliver commercial power to the grid by the 2030s, with firms inking site selections and power purchase agreements with major tech companies. Helion Energy signed a binding power purchase agreement with Microsoft for at least 50 megawatts by 2028, backed by a $465 million Series G round that valued the company at $15.5 billion, and broke ground on its Orion facility in Washington. Commonwealth Fusion Systems raised $863 million in an oversubscribed Series B2 round, bringing its total funding to nearly $3 billion, to develop its SPARC demonstration device and design the ARC commercial plant in Virginia. Proxima Fusion raised €411 million, becoming Europe's best-funded fusion company at a €2.4 billion valuation, with Google and RWE each contributing €25 million to accelerate its stellarator-based Alpha demonstrator near Munich.
Alphabet backs Proxima Fusion in €411 million funding round alongside RWE
Alphabet's Google and German utility RWE have invested in nuclear fusion startup Proxima Fusion as part of a €411 million funding round. Alphabet participated as a strategic investor, extending its reach into long-term, carbon-free energy solutions beyond its core technology operations. The investment aligns with rising AI-related power demand and long-term decarbonization goals, positioning Alphabet closer to future sources of baseload power that could support Google Cloud and Gemini. This move diversifies Alphabet's external partnerships into energy infrastructure, setting it on a slightly different path from peers like Microsoft and Amazon, which rely more heavily on traditional renewables and grid contracts today.
RWE Still Looks Below Fair Value After Proxima Fusion Backing
RWE has invested €25 million in German fusion startup Proxima Fusion as part of a €411 million funding round, extending the utility's involvement in advanced energy technologies. The most followed narrative puts RWE's fair value at €64.60, 13.1% above the current share price of €56.12, driven by long-term grid and renewables execution. However, the stock's price-to-earnings ratio of 16.8 times sits below the German market average of 17.1 times but above the peer average of 15.8 times and a fair ratio of 9.7 times, suggesting investors are already paying a premium for the growth story. RWE's one-year total shareholder return stands at 58.22% and its five-year return at 104.29%, though the 90-day return has slipped 4.75%.
Proxima Fusion raises €411 million from Google, RWE and others
Magnetic fusion start-up Proxima Fusion has raised €411 million in a financing round that values the Munich-based company at €2.4 billion. The round was led by XTX Ventures and East X Ventures, with Alphabet's Google and German utility RWE joining as strategic investors. RWE invested €25 million and signed an agreement to partner on building the first stellarator fusion power plant at a former nuclear fission site in Gundremmingen, Bavaria.