OpenAI Eyes Huge Fusion Power Deal as AI Energy Demand Surges

The race to power AI may soon hinge on who can secure the most electricity.

OpenAI is in talks to secure a massive long-term energy supply from fusion startup Helion Energy, in a deal that could give the company access to 12.5% of Helion’s total power output. If finalized, the agreement would deliver 5 gigawatts of electricity by 2030, with plans to scale up to 50 gigawatts by 2035 — an amount that underscores just how quickly AI’s energy demands are accelerating.

The discussions come as Sam Altman, a longtime Helion backer, steps down as chairman of the company’s board, a move that would help clear potential conflicts of interest as the partnership takes shape.

Why choose a fusion energy company?

AI companies consume significant power. So much power that the expansion of data centers was, at one time, linked to rising prices in power bills in the US. And since these AI companies aren’t slowing down with their expansion plans, turning to private power companies, specifically those in the fusion sector, to meet their demand seems like an ideal choice.

In 2023, Microsoft, one of OpenAI’s corporate investors, signed a deal with Helion Energy to buy 50 megawatts of energy beginning in 2028. Microsoft isn’t the only one. Axios also reports that Google signed a deal last year to purchase 200 megawatts from Helion’s competitor, Commonwealth Fusion Systems.

All of these point to the fact that energy is fast becoming the real bottleneck in the AI race, where access to power is just as necessary as compute capacity. And the company that wins in this area sustains consequential leverage.

Inside a long-term energy deal

Although Helion has declined to confirm the deal, it did hint at it via a statement to TechCrunch made by its CEO and co-founder, David Kirtley:

“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.”

Kirtley also added, saying: “We look forward to continuing to work with him in this new capacity.”

Before stepping down as chairman, Sam Altman had spent over a decade backing Helion Energy, including participating in a $425 million raise last year to push the company toward commercialization, per this TechCrunch report.

Helion’s projected rollout for OpenAI, starting with 5 gigawatts by 2030 and scaling to 50 gigawatts by 2035, underscores both the scale of the opportunity and the uncertainty involved. Fusion energy remains largely experimental for such a massive supply, but the demand from companies like OpenAI is already forcing bets on future capacity.

In cases like this, stepping down as board chairman is to prevent conflicts of interest. Also, Altman has reportedly recused himself from decision-making regarding whatever deal both companies were working on. However, Yahoo Finance also noted that the pairing was his idea.

The broader view

What OpenAI is doing here is part of a wider trend: AI companies are no longer just building models but also stacking the infrastructure that powers them. What began as a heavy reliance on chipmakers like Nvidia has expanded into building and securing data centers and, increasingly, locking in long-term energy supply. 

The implication of this is simple. The more infrastructure an AI company stacks and controls, the more predictable and scalable its AI ambitions become.

Also read: AI data centers are pushing developers toward new power strategies as grid delays and turbine shortages reshape infrastructure planning.

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