Google backs Proxima Fusion in $468 million round
Google Germany-based Proxima Fusion, which aims to build Europe’s first commercial fusion power plant, was given 411 million euros ($468 million) in support, according to the company’s statement on Tuesday.
Nuclear fusion is the process of combining two hydrogen atoms to form a helium atom, releasing large amounts of energy.
Although it promises abundant energy, the technology has not been exploited commercially as the industry races to overcome technical challenges. All current nuclear power plants use fission, which involves splitting atoms.
Proxima, which has reached a valuation of $2.7 billion, stated that Google’s investment underlines its interest in fusion as a potentially abundant, carbon-free, robust energy source in the long term.
The round was led by XTX Ventures and East X Ventures, with RWE and Google as strategic investors. Other venture capital firms such as Plural, UVC Partners, Balderton and Cherry Ventures also participated.
“Europe is racing with the United States and China to achieve the first fusion power plant,” co-founder and CEO Francesco Sciortino said in a statement.
“Proxima’s funding shows that Europe can not only invent breakthrough technologies, but also build globally competitive companies around them,” he added.
“Investors recognize both the urgency and opportunity of what we do and are backing us to develop a generational energy technology company.”
What is Stellarator fusion technology?
Proxima is developing stellar technology, one of the few approaches to fusion, and hopes to have its fusion demonstrator, a proof-of-concept precursor to a commercial power plant, operational by the early 2030s.
The company said it is targeting the commercial power plant later this decade.
Proxima said the funding will help expand its production, as well as produce high-temperature superconducting (HTS) cables and magnets. Develop the necessary engineering and production systems for star players.
It was stated that Proxima will hire in engineering, manufacturing and operations to accelerate progress.
Comparison of Proxima with fusion startups in the US
While Proxima is by far Europe’s best-funded fusion startup, U.S. companies working on the technology have raised significantly more money.
Commonwealth Fusion Systems (CFS) raised $863 million in August, bringing its total funding to $2.9 billion, according to Dealroom. Sam Altman-backed Helion Energy raised $465 million last month, for a total funding of $1.5 billion.
Google is also an investor in CFS and has signed a sales agreement with the company after its first commercial facility becomes operational in June 2025.
“Fusion has great potential as the energy source of the future: it is clean, abundant, inherently safe, and can be built almost anywhere,” the company wrote in a blog post at the time.
Highlighting the hurdles the technology has to overcome, Google added that fusion could change the world, but commercializing the technology is “extremely challenging and success is not guaranteed.”
