Trump Media and Technology Group (DJT) stock surged 41% on Thursday after the parent company of Truth Social announced a merger with fusion power firm TAE Technologies (TATE.PVT).
The deal underscores a bet on the energy demands from AI and data centers and the technologies that could prevail. TAE’s backers include tech giant Google (GOOG, GOOGL), Goldman Sachs (GS), and oil major Chevron (CVX).
The agreement, valued at more than $6 billion, is a bet on the future of fusion, a type of nuclear technology that mimics the way the sun produces light and heat. Fusion is carbon-free and produces significantly less radioactive waste than traditional nuclear power.
The technology is not yet commercially available, but the deal includes an immediate $200 million in cash at signing. The combined company is expected to start of construction of its first utility-scale fusion power plant in 2026.
Under the terms of the deal, TMTG and TAE shareholders will each own approximately 50% of the newly combined entity.
Upon closing, TMTG, currently majority owned by President Trump’s revocable trust, will serve as the holding company for Truth Social and TAE, among other entities.
Read more about today’s market action.
Energy dominance and independence have been a focus of Trump’s administration.
In October, the Department of Energy announced a fusion roadmap. Energy Secretary Chris Wright highlighted the DOE’s prioritization of modernizing the country’s energy infrastructure, with a focus on investments in fusion energy.
Wall Street strategists have identified energy as a major bottleneck for AI and data center infrastructure. Hyperscalers have been signing deals with power companies directly to meet their AI electricity demands.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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