The venture of President Donald Trump’s social media and cryptocurrency firm is placing a massive wager on an entirely different sector—nuclear fusion, a potentially lucrative yet commercially unproven energy technology that could aid in sustaining an economy suddenly facing power shortages.
On Thursday, Trump Media and Technology Group unveiled a surprise merger with TAE Technologies in an equity deal valued over \$6 billion, which will establish one of the first publicly traded fusion companies. News of the transaction boosted Trump Media shares (DJT) by 35% in early trading Thursday.
Fusion energy has long held the promise of a clean, safe, and cheap power source. And this energy need has become particularly pressing in recent years. The surge in artificial intelligence investments has led to the accumulation of energy-intensive AI data centers.
Following the merger, shareholders of Trump Media and TAE will possess roughly 50% of the combined entity. The merged companies intend to commence construction next year on the world’s first fusion reaction capable of generating electricity at utility scale, rather than purely in laboratory settings.
The combination with TMTG may afford TAE political influence. But it could also render it more politically contentious, particularly if it seeks any federal government backing, such as grants, low-interest loans, or permit approvals.
This could also grant TAE access to necessary capital. Per the deal terms, TMTG will supply \$300 million in cash to advance TAE’s plans. But this is likely only a portion of the funds accessible from some of TAE’s current backers, such as Google parent Alphabet, as well as numerous private investors.
But that \$300 million is just a small fraction of the funds TAE requires or anticipates accessing once the firm becomes public via this transaction. Remaining a private enterprise, even with wealthy patrons, is no longer sufficient, TAE CEO Michl Binderbauer told CNN on Thursday.
“This is a multi-billion dollar venture,” he stated. “The pace at which you acquire capital is different. If I raise \$2 billion over five years, I cannot construct a plant fast enough.” He noted the company has secured about \$1.3 billion over its 25-year history.
This announcement arrives amid a sharp decline in Trump Media shares this year. Truth Social is struggling for traction, remaining a much smaller player compared to social media rivals. The firm has announced diversification into AI, cryptocurrencies, and asset management. This is certainly its most varied investment, but it could prove the most rewarding if matters proceed as planned.
Trump launched Trump Media in 2021 as part of an effort to forge a counterweight to major tech corporations and existing social platforms. Trump Media went public in 2024 by merging with a “blank check” firm in a transaction that garnered billions despite the company generating almost no revenue.
Following Trump’s election victory last fall, he transferred his dominant stake in Trump Media to a revocable trust of which he is the sole beneficiary and which is managed by his eldest son, Donald Trump Jr.
The Promise of a New Power Source
Essentially, fusion is the pursuit of replicating on Earth the process that powers the Sun and other stars. It involves merging atoms to create an extraordinarily potent burst of energy, achieved by utilizing the most abundant element in the universe—hydrogen.
This futuristic power source is viewed as a kind of holy grail of clean energy because it is virtually limitless, produces no planet-warming pollution, and, unlike fission—the world’s current nuclear technology—it leaves no legacy of long-term nuclear waste.
Nations and private firms like TAE Technologies are seeking to master fusion, but immense hurdles exist—proving the process can work, and moving it from the laboratory to commercial application. These are extremely costly endeavors dependent on securing funding until fusion is proven successful—a point likely years or even decades away.
Over the first seven months of this year, over \$2.6 billion was raised, backed by a wide array of investors, according to the Fusion Industry Association. But this is still significantly short of the amount companies state is needed to launch initial pilot plants.
While researchers have made laboratory progress, nuclear fusion has not yet delivered energy at a commercial magnitude.
TAE, however, asserts it is prepared to do precisely that, with plans to start building the first utility-scale fusion power plant in 2026 at a yet-to-be-determined site. But it will still require “about five” years before electricity generation begins, Binderbauer informed CNN on Thursday.
The ‘Arms Race’ with China
“TAE holds over 25 years of R&D experience in the lab, has safely constructed and operated five fusion reactors, and importantly, has demonstrated significant energy and fusion breakthroughs over the years, placing TAE at the forefront of the global fusion scene, in our view,” stated Dan Ives, a technology analyst at Wedbush Securities, in a note Thursday.
“In our view, TAE will also clearly gain substantial political backing from President Trump, and this, importantly, establishes a major domestic confrontation in nuclear fusion in the U.S. over the coming years,” he wrote.
Nuclear power has regained favor in recent years as artificial intelligence generates enormous new demand for electricity to power data center computers. Fusion or other energy sources could help resolve America’s supply issues without the ill effects or siting disputes associated with conventional nuclear power.
“This is an arms race with China,” Ives told CNN. “The U.S. faces a serious energy deficit and challenges in spurring the transformative development of AI-based data centers over the next decade. While the U.S. leads China in AI technology, China is clearly ahead in the energy sector with a major surplus. If this is the American answer for fusion, then TAE is it. The most missing ingredient is capital.”
Although Trump Media and Technology Group is not generating profit, it possesses substantial assets, particularly from its cryptocurrency holdings. Its balance sheet showed \$1.5 billion in digital assets and an additional \$550 million in other short-term investments.
But this is a negligible sum compared to the funds available at other major tech corporations. For instance, Google owner Alphabet has \$95.7 billion in cash, equivalents, and marketable securities on its books.
Binderbauer told CNN that TMTG proved to be the partner he sought to take his company public.
“Sometimes you get lucky and meet the right people,” he remarked. And he is unconcerned that any governmental support he requires or obtains will become more politically contested due to his ties with Trump.
“I am not seeking anything special,” he stated. “Perhaps you will face closer scrutiny on the regulatory side, and that’s fine, because it will assure the world that the technology is what matters.”
Alphabet is already one of TAE’s investors, according to data compiled by FactSet, alongside Chevron, Charles Schwab, the government of Kuwait, and the late Microsoft co-founder Paul Allen, as well as numerous venture firms. Michael B. Schwab, founder and managing director of one such venture firm, Big Sky Partners, is expected to be named chairman of the combined TMTG and TAE.
Devin Nunes, CEO of Truth Media & Technology Group, will serve as co-CEO of the merged entity alongside TAE CEO Binderbauer. Nunes and Donald Trump Jr. will be the two TMTG representatives and will join the nine-member board of the combined firm.
“Fusion energy will be the most dramatic energy breakthrough since commercial nuclear power emerged in the 1950s—an innovation that will lower power costs, increase supply, secure America’s AI supremacy, revitalize the American manufacturing base, and fortify national defense,” Nunes told investors during a brief call Thursday morning, during which neither he nor Binderbauer took questions. “With TAE, we will have access to capital and the public market to realize TAE’s vision of getting abundant nuclear energy onto the grid.”
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