Sam Altman-backed fusion startup Helion in talks with OpenAI

Helion, a pioneering fusion energy startup, is reportedly negotiating a power supply agreement with OpenAI, both of which are backed by Sam Altman. According to a report by Axios, these discussions are in the early phases and could secure OpenAI 12.5% of Helion’s output, which is projected to reach five gigawatts by 2030 and 50 gigawatts by 2035. This potential collaboration follows a similar arrangement between Helion and Microsoft, which was established in 2023, allowing Microsoft to purchase power beginning in 2028. If the details from the Axios report hold true, it indicates Helion's confidence in its ability to scale its fusion production quickly. Helion's reactors are designed to generate 50 megawatts of electricity each. To meet its ambitious production goals, the startup would need to construct and install 800 reactors by 2030, with an additional 7,200 required by 2035. The company is in a race to launch its first commercial-scale reactor, aiming to be ahead of competitors who are targeting the early 2030s for their own commercial operations. In 2022, Helion secured $425 million from a range of investors, including Altman and major firms such as Mitril, Lightspeed, and SoftBank. Unlike many fusion startups that utilize heat from fusion reactions to generate electricity through steam turbines, Helion is adopting an innovative approach. Their reactors are designed to use magnetic fields to directly convert fusion energy into electricity. Inside the hourglass-shaped reactor, fusion fuel is transformed into plasma at both ends and propelled toward each other with magnets. When they collide, another set of magnets compresses the resulting plasma until fusion occurs, generating energy that can be converted directly into electricity. Helion is currently testing its Polaris prototype as it prepares for commercial power production. In February, the company achieved plasma temperatures of 150 million degrees Celsius, nearing the 200 million degrees Celsius threshold believed necessary for commercial viability. While Altman has reportedly stepped down from his role as chair of Helion's board and removed himself from the discussions, his influence is evident in this potential partnership. Last year, he also resigned from his chair position at Oklo, another energy startup, to facilitate strategic collaborations with leading AI firms, including the possibility of working with OpenAI.