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Fusion Startups Find New Partners in Defense World
Confirmed
In Short: Fusion power startups are exploring new funding sources in the defense sector as climate tech funding stalls.
Pacific Fusion, which announced a memorandum of understanding with the National Nuclear Security Administration (NNSA) to work together on high-energy-density fusion experiments, echoed this sentiment. "Defense applications were ‘always on our mind,’" said Carrie von Muench, co-founder and chief operating officer at Pacific Fusion. The defense industry has explored laser weapons for years, but interest has spiked as drones have reshaped modern warfare, according to TechCrunch.
Traditional air defense systems were designed to target human-piloted aircraft, which tend to be larger and fewer in number. As warfare evolves, the need for more agile and responsive defense systems has become more pressing. This shift has accelerated as venture dollars committed to climate tech—typically the funds that have supported fusion startups—have stalled, according to TechCrunch.
A groundbreaking fusion power experiment in 2022 happened at the National Ignition Facility, which has supported national security applications for more than 25 years. This facility's dual-purpose nature highlights the potential overlap between defense and fusion research. The defense industry's interest in fusion technology is not just about immediate applications but also about long-term strategic advantages, such as the development of advanced materials and energy systems.
In addition to these partnerships, a new startup called Fusionality is quietly building the software backbone that could help fusion power finally reach the grid. Founded by alumni of Google DeepMind, the company is developing AI-powered control systems and simulation environments designed to help fusion reactor developers skip years of trial-and-error engineering, according to an exclusive report from TechCrunch. This software could be a game-changer, potentially shaving years off the development timeline for commercial fusion power.
What's confirmed
- Pacific Fusion, which announced a memorandum of understanding with the National Nuclear Security Administration (NNSA) to work together on high-energy-density fusion experiments, echoed this sentiment. "Defense applications were ‘always on our mind,’" said Carrie von Muench, co-founder and chief operating officer at Pacific Fusion. The defense industry has explored laser weapons for years, but interest has spiked as drones have reshaped modern warfare, according to TechCrunch.
- Traditional air defense systems were designed to target human-piloted aircraft, which tend to be larger and fewer in number. As warfare evolves, the need for more agile and responsive defense systems has become more pressing. This shift has accelerated as venture dollars committed to climate tech—typically the funds that have supported fusion startups—have stalled, according to TechCrunch.
- A groundbreaking fusion power experiment in 2022 happened at the National Ignition Facility, which has supported national security applications for more than 25 years. This facility's dual-purpose nature highlights the potential overlap between defense and fusion research. The defense industry's interest in fusion technology is not just about immediate applications but also about long-term strategic advantages, such as the development of advanced materials and energy systems.
- In addition to these partnerships, a new startup called Fusionality is quietly building the software backbone that could help fusion power finally reach the grid. Founded by alumni of Google DeepMind, the company is developing AI-powered control systems and simulation environments designed to help fusion reactor developers skip years of trial-and-error engineering, according to an exclusive report from TechCrunch. This software could be a game-changer, potentially shaving years off the development timeline for commercial fusion power.
What's still developing
- Disrupt 2026: OpenAI, Anthropic, Replit, and more take over 6 industry stages. 25% off tickets now Back by popular demand: Save up to $300 on Disrupt Fusion power is getting back to its roots.
- Fusion startups have captured a large portion of recent climate tech funding, but fusion is an expensive business, and VCs are always happy when their portfolio companies find other sources of money.
- Last week, laser-based fusion startup Xcimer announced a partnership with and investment from RTX, the conglomerate that includes defense contractor Raytheon.
- The startup’s current laser system, Phoenix, operates at an order of magnitude lower power than will be required for a power plant, but it is powerful enough to have caught the attention of the defense industry.
- DeepMind Alumni Launch Fusionality to Speed Up Fusion Ex-Google DeepMind engineers build AI control tools for fusion power startups PUBLISHED: Wed, Sep 9, 2026, 6:37 AM UTC | UPDATED: Wed, Sep 9, 2026, 7:12 AM UTC The Tech Buzz may earn a commission when you buy through links on this page.
- Scientists have chased the promise of clean, near-limitless energy from atomic fusion for decades, and the joke inside the industry has long been that commercial fusion is perpetually 'thirty years away.' Now a new startup called Fusionality thinks it can shave real time off that clock, not by building a reactor itself, but by building the software that every reactor needs to actually work.