nvidia, google, and bill gates help commonwealth fusion systems raise $863m

Commonwealth Fusion Systems Secures $863 Million in Funding

Commonwealth Fusion Systems, a pioneering fusion power startup, has successfully raised $863 million through a substantial investment round. This funding comes from a diverse group of investors, notably including Nvidia, Google, and Breakthrough Energy Ventures, among others.

Advancing Fusion Towards Commercialization

“Our focus remains on accelerating the development of fusion energy,” stated Bob Mumgaard, co-founder and CEO, during a recent press briefing. “This capital injection isn’t solely about proving the feasibility of fusion; it’s about transitioning fusion into a viable, large-scale industrial operation.”

Significant Investment to Date

To date, the Massachusetts-based company has amassed nearly $3 billion in funding, surpassing all other fusion startups in investment received. This follows a previous $1.8 billion round secured in 2021.

The Growing Appeal of Fusion Energy

For a long time, fusion power has been envisioned as a potentially limitless energy source. However, it is only recently that the prospect has gained traction with investors. Rapid advancements in computing power and artificial intelligence have accelerated research and development, transforming the sector into a dynamic hub for innovation and investment.

The Science Behind Fusion

The process of fusion involves compressing and heating atoms to create a plasma, a fourth state of matter. When this plasma reaches sufficient temperature and pressure, the atoms fuse together, releasing substantial amounts of energy.

Sparc: A Prototype Reactor

CFS is currently constructing a prototype reactor, named Sparc, located in the Boston metropolitan area. The company anticipates activating this device in the coming year and achieving scientific breakeven by 2027 – a critical milestone where the energy produced by the fusion reaction exceeds the energy required to initiate it.

Sparc's Role in Future Success

Although Sparc is not intended for direct power delivery to the electrical grid, it is considered essential for the company’s overall progress.

Uncharted Territory in Plasma Physics

“There are still aspects of the modeling and the underlying physics that require further understanding,” explained Saskia Mordijck, an associate professor of physics at the College of William and Mary, in an interview with TechCrunch. “When a completely new device is activated, there’s always the possibility of encountering plasma conditions we haven’t previously observed, potentially revealing unexpected phenomena.”

Plans for Arc: A Commercial Power Plant

Provided Sparc operates without major issues, CFS plans to commence construction of Arc, a commercial-scale power plant in Virginia, starting in either 2027 or 2028.

Tokamak Technology

Both the Sparc and Arc designs utilize a tokamak, a well-established type of fusion reactor that employs powerful superconducting magnets to confine and compress the plasma. Tokamaks are widely recognized within the scientific community.

Performance Expectations

“The fundamental concept is proven,” Mordijck stated. “The key question now is how effectively it will perform in practice.”

Investor Confidence

Investors have demonstrated strong confidence in CFS’s progress. The Series B2 funding round attracted a large number of participants, with many existing investors increasing their contributions, according to Ally Yost, CFS’s senior vice president of corporate development.

List of Investors

Investors who increased their stakes include Breakthrough Energy Ventures, Emerson Collective, Eni, Future Ventures, Gates Frontier, Google, Hostplus, Khosla Ventures, Lowercarbon Capital, Safar Partners, Eric Schmidt, Starlight Ventures, and Tiger Global.

New Investors Join the Round

New investors participating in the round include Brevan Howard, Morgan Stanley’s Counterpoint Global, Stanley Druckenmiller, FFA Private Bank in Dubai, Galaxy Interactive, Gigascale Capital, HOF Capital, Neva SGR, Nvidia’s NVentures, Planet First Partners, Woori Venture Partners US, and a consortium of 12 Japanese companies led by Mitsui & Co., Ltd. and Mitsubishi Corporation.

Building a Robust Ecosystem

This diverse investor base is expected to be beneficial as CFS develops its supply chain and seeks partners for constructing power plants and procuring electricity. The company has already secured an agreement with Google to purchase 200 megawatts from Arc.

First-of-a-Kind Costs

As the first of its kind, Arc is anticipated to have higher costs compared to future power plants, Mordijck noted.

Beyond Scientific Validation

While Sparc will validate the scientific principles, it will also provide CFS with crucial operational insights, as Mumgaard explained to TechCrunch. “It’s not just about proving it works; it’s about understanding the capabilities needed for deployment and accurately assessing the associated costs.”

Funding for Arc Remains a Challenge

The current funding round will support progress on Sparc, but it will not be sufficient to finance the construction of Arc, which is projected to cost several billion dollars. The company is still evaluating the optimal funding strategy for Arc.

Commitment to Innovation

“The fact that this is a novel technology introduces complexities regarding capital sourcing,” Mumgaard said. “However, we remain firmly committed to this endeavor, and our investors share that commitment.”