Sam Altman-backed fusion startup Helion in talks to sell power to OpenAI

Sam Altman, the CEO of OpenAI, has announced his resignation as board chair of Helion, the fusion energy startup he supports. This development comes amid preliminary discussions between Helion and OpenAI regarding a potential partnership. According to Axios, the proposed agreement could allow OpenAI to secure 12.5% of Helion's energy output, targeting five gigawatts by 2030 and a significant increase to 50 gigawatts by 2035. In a similar move, Microsoft, a partner of OpenAI, previously established a deal with Helion in 2023 to begin procuring energy in 2028. Should the information from Axios be verified, it indicates Helion's ambitious plans to rapidly enhance its fusion power generation capabilities. The startup claims that each of its reactors will produce 50 megawatts of electricity; thus, they would need to construct and deploy a total of 800 reactors by 2030 and an additional 7,200 by 2035. While Helion has not confirmed the ongoing discussions with OpenAI, a spokesperson mentioned to TechCrunch that there have been no announcements of new customer agreements beyond existing contracts with Microsoft and Nucor. However, Helion did verify Altman's departure from the board, indicating potential future collaboration between the two entities. David Kirtley, Helion's co-founder and CEO, remarked, "Sam is stepping down from Helion’s Board of Directors after more than a decade. This decision enables Helion and OpenAI to partner on future opportunities to bring zero-carbon, safe electricity to the world. We look forward to continuing to work with him in this new capacity." Helion is in a race to develop its first commercial-scale reactor, with hopes that success will place it ahead of competitors, many of whom aim for commercial operations in the early 2030s. Last year, the startup secured $425 million from various investors, including Altman, as well as notable firms like Mithril, Lightspeed, and SoftBank. While most fusion companies focus on utilizing heat generated from fusion reactions to produce electricity through steam turbines, Helion is pursuing an innovative approach. Their reactor design employs magnets to convert fusion energy directly into electricity. The hourglass-shaped reactor first transforms fusion fuel into plasma at each end, which is then propelled together by magnetic fields. Upon colliding in the center, another set of magnets compresses the plasma until fusion occurs, generating energy that can be converted into electricity. Currently, Helion is testing its Polaris prototype, making strides toward commercial viability. In February, the company achieved plasma temperatures of 150 million degrees Celsius, approaching the 200 million degrees Celsius target necessary for commercial operations. Despite stepping down from his role as chair, Altman remains a significant influence in the strategic developments of Helion, having previously stepped down from Oklo, a small modular nuclear reactor startup, to enable potential partnerships with leading AI firms, including OpenAI.