Helion Energy, a fusion company based in the Seattle area, is in talks with OpenAI regarding a potential deal where OpenAI would purchase large amounts of electricity for its data centers. OpenAI CEO Sam Altman, who has invested $375 million in Helion and serves as the company’s board chair, has reportedly recused himself from the deal negotiations. Helion is working on technology to produce renewable energy from nuclear fusion, a source of power that has huge potential but has not yet been successfully harnessed commercially. Despite the challenges, the fusion sector has attracted significant investment globally, with companies striving to unlock the power of fusion reactions.
At the World Economic Forum in Davos, Altman highlighted the importance of breakthroughs in clean energy for the future of AI, stating that fusion or drastically cheaper solar power at scale are needed to advance the field. Helion, with over $600 million in venture capital funding and potential unlocked additional funding of $1.8 billion, is racing to deliver on this breakthrough. Altman considers Helion to be more than just an investment, alongside OpenAI it is a significant focus of his attention. The company, based in Everett, Washington, is working on completing construction of Polaris, its seventh-generation fusion prototype device, expected to become operational soon.
The connection between Altman and Helion isn’t new, as in 2023, the company reached an agreement with Microsoft to supply electricity for a facility which would be operational by 2028. Microsoft, a significant investor in OpenAI, is also linked to the clean energy conversation due to its growing carbon footprint driven by data center expansions. As tech companies like Microsoft increase their use of AI tools, concerns about energy consumption and climate impacts are growing. Helion also has an agreement with Nucor to build a fusion reactor for a steel-making facility with plans to begin operations by 2030. The power purchase agreement with Microsoft includes penalties for Helion if they fail to meet their electricity generation schedule.
Altman has been an advocate for fusion since his time at Y Combinator, recruiting Helion to participate in the startup incubator and investing in the company. He became chair of the company in the following year. The potential deal with OpenAI highlights the intersection of clean energy, AI, and technology companies’ increasing need for massive amounts of power for data centers. With advancements in fusion technology, the hope is to make clean energy more accessible and sustainable for powering the technologies of the future. This collaboration underscores the importance of advancements in energy sources to meet the growing demands of the tech industry while mitigating their impact on the environment.
