Will Ambitious AI Drive a Revolutionary Leap in Nuclear Fusion Technology?

The Energy Demands of Artificial Intelligence

As artificial intelligence becomes increasingly integrated into our daily lives, it can sometimes feel like we’re living in a futuristic novel. However, beneath the excitement lies a significant challenge: AI systems require enormous amounts of electricity, straining global power resources and causing energy costs to soar.

Turning to Fusion: A Sci-Fi Solution for a Modern Problem

To address this growing energy appetite, researchers and major technology companies are looking toward a power source that has long existed only in theory—nuclear fusion. Once confined to the realm of advanced physics, fusion is now making tangible progress.

Since the era of the moon landing, fusion technology has been under development. Recent years have seen remarkable advances, most notably in 2022 when the National Ignition Facility at Lawrence Livermore National Laboratory achieved a historic milestone: generating 3.15 megajoules of energy from just 2.05 megajoules of input—the first time a fusion reaction produced more energy than it consumed. This achievement has since been replicated, moving fusion from concept to reality.

Following these breakthroughs, significant investment has flowed into the fusion sector, shifting the focus from academic and government labs to private companies with the aim of bringing fusion energy to market.

But is the long-awaited era of nuclear fusion finally within reach?

Brian Berzin, co-founder and CEO of Thea Energy, is optimistic: “Within the next decade, we expect fusion to be supplying reliable electricity to consumers.”

While this prediction is ambitious, many experts believe it is achievable.

The Difference Between Fission and Fusion

It’s natural to wonder: Isn’t nuclear energy already widely used? The answer is yes, but today’s nuclear power plants rely on fission, not fusion. The distinction is as significant as the difference between American football and soccer—while both are played on similar fields with teams of eleven, the similarities end there.

Fission, the process behind current nuclear plants like those at Chernobyl, Fukushima, and Three Mile Island, involves splitting heavy uranium atoms to release energy. In contrast, fusion generates power by forcing two light hydrogen atoms to merge into a heavier atom, releasing far more energy in the process.

Fusion is the same reaction that powers the sun and stars, offering the potential to produce several times more energy than fission and vastly more than fossil fuels. Even better, a large-scale fusion plant would generate only minimal radioactive waste—comparable to that from medical imaging equipment—and is inherently safe from the runaway reactions that have plagued fission reactors.

Fusion: The Ultimate Energy Goal

Fusion is often described as the “Holy Grail” of energy sources. As Troy Carter, Director of the Fusion Energy Division at Oak Ridge National Laboratory, puts it, fusion promises immense power with minimal waste and risk.

Yet, the journey to practical fusion energy has been anything but straightforward. Decades of research have shown just how challenging it is to achieve.

Overcoming Technical Barriers

Historically, creating fusion required more energy than it produced, with recent successes only just surpassing the break-even point. Achieving fusion demands equipment capable of withstanding temperatures exceeding 100 million Kelvin—the same conditions found in the heart of the sun.

Bringing fusion to the commercial market involves solving complex physics problems, inventing new energy capture technologies, designing advanced power plants, and establishing specialized supply chains for critical materials.

Cost is another major hurdle. As Yasir Arafat, CTO at fission startup Aalo Atomics, notes, “Fusion must compete with other energy sources on price. No matter how clean or impressive it is, if it’s too expensive, it won’t succeed.”

From Concept to Commercialization

Despite these obstacles, the fusion industry is forging ahead. Thea Energy, which has achieved energy break-even, recently became the first of eight fusion startups in the Department of Energy’s Milestone-Based Fusion Development Program to receive initial design approval for its power plant.

“The DOE brings together experts from science, engineering, and commercial power to thoroughly evaluate every aspect,” says Berzin. “We’re excited to be the first to pass this milestone.”

Thea is among several companies benefiting from a surge in venture capital, alongside Commonwealth Fusion and TAE Technologies. According to Sightline Climate, private investment in fusion reached $3.8 billion globally last year—a 476% increase from the previous year. Most leading startups have roots in university or national labs; Thea, for example, originated from the Princeton Plasma Physics Laboratory, where the “Stellarator” fusion device was developed.

Decades of Progress and Investment

“It took 70 years for the Stellarator to reach the point where commercialization is possible,” Berzin explains. “Recent breakthroughs now make it feasible for us to bring it to market—no more waiting for miracles.”

Fusion research has experienced cycles of public funding and interest. The Institute for Progress reports that US government investment in fusion grew from $24 million in 1967 to a peak of $468.5 million in 1984, driven by the energy crises of the 1970s, before declining in subsequent years.

Thea plans to begin construction of its first power plant by the end of this decade, aiming to deliver fusion energy to the grid by 2033 or 2034.

“The private sector’s ten-year timeline is ambitious,” Carter observes. “But I’m hopeful—there’s a realistic, though difficult, path to fusion-powered electricity in the 2030s.”

Carter also points out that a purely public-sector effort might have brought fusion to the grid by the 2040s, but private companies can move faster and take greater risks than government agencies, which are often slowed by regulatory and operational constraints.

The Economics of Fusion Power

Berzin estimates that electricity from Thea’s first fusion plant will cost around $150 per megawatt-hour, placing it at the upper end of current wholesale prices. For comparison, the US Energy Information Administration reports that last year’s average was about $50 per megawatt-hour.

However, Berzin expects costs to fall as more plants are built: “By the time we’re constructing our tenth or hundredth plant, prices should drop to $50–$60 per megawatt-hour.”

This shift is significant because, unlike traditional power generation where fuel costs drive prices, fusion relies on hydrogen—a plentiful and inexpensive resource. The main expense lies in building and maintaining the complex machinery required for fusion, not in the fuel itself.

If the industry can deliver fusion energy at competitive rates, the next challenge will be to operate and maintain these advanced power plants for decades.

“Whether it’s fission, fusion, or other large-scale energy systems, these are highly sophisticated machines,” Berzin notes. “We spend considerable time planning how to manufacture, assemble, and operate these facilities reliably for 40 years or more.”