German startup Proxima Fusion has successfully raised €411 million ($469 million) in an investment round that includes contributions from energy company RWE AG (OTC:RWEOY) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), which values the company at €2.4 billion ($2.74 billion).
Proxima Fusion is developing a nuclear fusion plant, which is projected to be operational in 2030.
RWE joined the investment round following its recent collaboration with Proxima to construct the first stellarator fusion power plant in Gundremmingen, Bavaria.
The funding round also drew participation from new investors KfW Capital, SPRIND, and Burda Principal Investments, alongside existing backers including Plural, UVC Partners, Balderton, Cherry Ventures, DST Global Partners, Brevan Howard Macro Venture, Lightspeed, and others.
The funding will support the construction of Alpha, Proxima Fusion’s net-energy stellarator demonstrator near Munich, Germany. Alpha aims to validate key fusion technologies and pave the way for the world’s first commercial fusion power plant later this decade, the start-up said.
Alphabet Expands Nuclear Bet
Alphabet’s investment highlights its continued commitment to fusion as a promising source of sustainable, carbon-free energy. The funding round is among the largest private investments in European technology this year and the biggest ever made in Europe’s fusion sector.
The company’s investment in Proxima Fusion is not its first venture into nuclear energy. In May 2025, Google entered a strategic agreement with Elementl Power to develop three sites for advanced reactors.
Later in August, Google backed Kairos Power, marking the first time a U.S. utility committed to buying power from advanced reactors. The companies said that their agreement marks the first U.S. utility commitment to purchase electricity from advanced nuclear reactors, signaling a potential shift in the country’s energy strategy.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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