German nuclear fusion startup Proxima Fusion has closed a €411 million ($469.69 million) funding round, attracting strategic investments from Alphabet Inc.'s Google and German utility RWE AG. The round values the three-year-old company at €2.4 billion and underscores growing corporate interest in next-generation clean energy technologies.
Funding Details and Investor Profile
The financing was led by XTX Ventures, the investment arm of algorithmic trading firm XTX Markets Ltd, and London-based East X Ventures. Together, these two lead investors contributed approximately €150 million. Existing investors matched that amount, with additional participation from KfW Capital, the investment division of Germany's state bank, and the European Union's EIC Fund. Over 90% of investors are based in Europe, according to the company.
Proxima Fusion previously raised €130 million in 2025. Including the latest round and €95 million in public grants, total funding now exceeds €650 million.
Bavaria Project and Cost Structure
The capital will support development of the company's planned fusion facility in Bavaria, announced in February. The demonstrator, named Alpha, is estimated to cost approximately €2 billion. Proxima Fusion has committed to funding one-fifth of the project, with the state of Bavaria pledging a similar share. CEO Francesco Sciortino stated that the remaining funding is expected from Germany's federal government and the European Union.
RWE invested €25 million in the round, and the facility is slated to be built at a decommissioned RWE nuclear power site in Bavaria.
Strategic Backing from Google
Google joined as a strategic investor, reflecting tech companies' search for carbon-free electricity to power expanding data centers. However, Sciortino noted no specific plans between the two firms related to data centers and declined to disclose Google's investment size. This follows Google's 2025 agreement to purchase 200 megawatts from Commonwealth Fusion Systems, a US-based fusion company.
Stellarator Technology and Competitive Landscape
Proxima Fusion's technology is based on a stellarator—a twisted, doughnut-shaped device that uses powerful magnets to confine plasma for nuclear fusion. Sciortino claims the stellarator design offers greater stability than tokamak reactors or laser-based methods. The company operates offices in Munich, Zurich, and Oxford, and now describes itself as Europe's best-funded nuclear fusion firm.
Despite the milestone, Proxima Fusion trails US competitors in total capital raised. Commonwealth Fusion Systems has secured nearly $3 billion, and Helion Energy Inc., backed by Sam Altman, has attracted significantly larger funding. Sciortino argues that comparisons should account for company age, stating, 'We are faster than anyone else.'
The company maintains that the latest funding strengthens its position as it works toward bringing commercial nuclear fusion technology closer to reality while advancing its planned demonstration project in Bavaria.
This article is for informational purposes only and does not constitute financial advice.
