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Google, Billionaire Back German Fusion Startup
7 Jul
Summary
- Google and Alex Gerko's XTX Markets invested in Proxima Fusion.
- Proxima Fusion aims to build a demonstration facility by 2031.
- The company seeks significant government funding for its project.
German startup Proxima Fusion recently secured €400 million in a funding round led by XTX Markets, with participation from Google as a strategic investor. This investment values Proxima at €2.4 billion and broadens tech giants' focus on nuclear fusion for clean energy.
Proxima Fusion, spun out from the Max Planck Institute for Plasma Physics in 2023, aims to construct a €2 billion demonstration facility in Germany by 2031. The company is also seeking €1.2 billion in federal funding from the German government, in addition to €400 million from the Bavarian state, to prove its technology's commercial viability.
Tech companies like Google are increasingly investing in fusion energy to secure power for their energy-intensive data centers. Google has previously backed Commonwealth Fusion Systems and TAE Technologies, and has also agreed to purchase electricity from Kairos Power's small modular fission reactors. Microsoft and OpenAI's Sam Altman are backing Helion Energy.
This investment in Proxima Fusion signals a wider trend of hyperscalers spreading their bets on advanced nuclear technology, driven by mounting pressure on electricity infrastructure and lengthy grid connection delays worldwide. German energy company RWE also joined the funding round and previously agreed to provide a site for Proxima's future commercial facility.
