Type One Energy, a nuclear fusion startup backed by Bill Gates’ Breakthrough Energy Ventures, has raised $87 million through a convertible note, bringing its total venture funding to over $160 million. The company is also in the process of raising a $250 million Series B round, which sources value at a $900 million pre-money valuation. This latest funding underscores growing investor confidence in fusion technology as a viable solution for future energy demand.
Rising Demand for Clean Energy
Like many energy startups, Type One is benefiting from surging demand for electricity driven by data centers and the broader electrification of the economy. Industry projections indicate that data centers will consume nearly three times more electricity by 2035, while global electricity demand is expected to grow approximately 4% annually. This trend positions fusion energy as a promising technology to meet escalating energy needs with minimal environmental impact.
Fusion Power Technology
Fusion energy generates power by fusing atomic nuclei, a process that releases immense heat and energy, which can be converted into electricity using turbines. Unlike nuclear fission, fusion produces negligible radioactive waste and carries virtually no risk of catastrophic meltdowns. These characteristics make it a compelling alternative to both fossil fuels and conventional nuclear power for large-scale electricity generation.
Approaches to Fusion
There are two primary methods for achieving nuclear fusion: magnetic confinement and inertial confinement. Magnetic confinement uses strong magnets to control and compress plasma, the superheated matter in which atoms fuse, while inertial confinement relies on compressing fuel pellets with high-powered lasers. Type One has chosen magnetic confinement, leveraging a reactor design known as a stellarator, which uses twisted toroidal magnets to manage plasma stability over extended periods.
Type One’s Stellarator Strategy
The stellarator design allows precise control of plasma, a challenge that has limited previous fusion experiments. While earlier stellarators could sustain plasma for long durations, none were intended to generate electricity commercially. Type One aims to overcome this barrier, adapting stellarator technology to enable practical, scalable energy production.
Commercialization Plans
In 2025, Type One signed an agreement with the Tennessee Valley Authority (TVA) to site its first commercial plant, Infinity Two, at the former Bull Run Fossil Plant, retired in 2023. The plant is expected to generate 350 megawatts of electricity and could come online in the mid-2030s. Instead of constructing and operating the plant itself, Type One will license its technology to TVA and other utility partners, allowing them to build, own, and operate the facility.
Funding History
The startup previously raised $29 million in a 2023 seed round, later extended to $82.5 million in 2024. Investors included Bill Gates’ Breakthrough Energy Ventures, Doral Energy-Tech Ventures, and TDK Ventures. This latest $87 million injection continues to strengthen Type One’s financial foundation as it advances toward commercial-scale fusion deployment.
Future Outlook
The combination of new funding and strategic partnerships positions Type One to further develop and commercialize its fusion technology. By focusing on technology licensing and collaborations with energy providers, the company aims to accelerate adoption without shouldering the operational burden of power plants. With electricity demand rising globally, fusion offers a potential path to carbon-free, scalable energy solutions that could reshape the energy landscape.
Type One Energy’s progress highlights the increasing viability of nuclear fusion as a clean energy source. Its stellarator-based magnetic confinement approach, combined with partnerships and robust funding, brings the vision of practical fusion power closer to reality. As the company moves toward its Series B round and commercial plant deployment, investors and industry observers are watching closely to see if fusion can finally deliver on its long-promised potential.