German Startup to Build Europe's First Commercial Fusion Reactor, Google Invests

German startup Proxima Fusion has closed a 411 million euro investment round to build the first commercial nuclear fusion reactor on European soil. Google is among the investors in the company, now valued at 2.4 billion euros and the most valuable fusion firm in Europe.

Proxima develops stellarator technology, which generates energy using hot plasma and magnets. This form of fusion is not yet commercially deployed. A demonstration reactor, a precursor to a commercial power plant, is expected to be completed within a few years, with the commercial plant planned for the late 2030s. The technology differs fundamentally from current nuclear power plants, which rely on fission.

The funding will help expand production of high-temperature superconducting cables and magnets, develop manufacturing systems for the reactors, and hire more staff. Google has expressed interest in fusion as a potential source of abundant, carbon-free, and reliable long-term energy, having previously invested in American Commonwealth Fusion Systems.

Founded in 2023, Proxima now employs around 200 people and has raised over 650 million euros in less than three years, including 95 million in government subsidies. With support from the state of Bavaria, the company plans to build its demonstration reactor in Garching and a factory in Gundremmingen for producing five-meter-diameter magnets.