Proxima Fusion has raised €411 million (approximately $469 million) in a major funding round as the Munich-based nuclear fusion startup accelerates its mission to develop one of Europe's first commercial fusion power plants by the 2030s.
The investment attracted a mix of strategic and financial backers, including RWE AG, Germany's leading energy company, and Google, underscoring growing confidence in fusion as a long-term clean energy solution.
The company aims to harness nuclear fusion—the process that powers the sun—to deliver abundant, carbon-free electricity capable of meeting future global energy demands.
The funding round was led by XTX Ventures, the investment arm of Alex Gerko's algorithmic trading firm XTX Markets Ltd, alongside London-based East X Ventures. The latest investment values Proxima Fusion at €2.4 billion, placing it among Europe's most valuable clean-energy startups.
The fresh capital will be used to advance research, engineering, and infrastructure development, including plans to build its Alpha demonstration facility at a decommissioned RWE nuclear power site in Bavaria. The demonstration project is expected to cost around €2 billion, with Proxima Fusion and the Bavarian government each committing to finance one-fifth of the total investment.
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The announcement highlights the increasing momentum behind fusion energy as governments, utilities, and technology companies seek reliable, carbon-free power to support rising electricity demand, particularly from AI-driven data centers.
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Although commercial nuclear fusion remains in the experimental stage and no operational fusion power plants exist anywhere in the world, investor confidence in the sector continues to strengthen.
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Proxima Fusion says it has now secured more than €650 million in total funding, including €95 million in public grants, with over 90% of its investor base coming from Europe. The latest fundraising reflects growing belief that Europe can play a leading role in commercializing fusion technology and building a next-generation energy ecosystem capable of delivering sustainable, large-scale electricity in the decades ahead.