[Digital Today reporter Jinju Hong] Google has invested in German startup Proxima Fusion, which is targeting Europe’s first commercial nuclear fusion power plant.

On July 7 local time, CNBC reported that Proxima Fusion announced it had closed a 411 million euro investment round, or $468 million (about 707.6 billion won).

The funding values Proxima Fusion at $2.7 billion. The round was led by XTX Ventures and EastX Ventures, and German energy company RWE and Google joined as strategic investors. Venture firms including Plural, UVC Partners, Balderton and Cherry Ventures also provided funding.

Nuclear fusion is a technology that produces massive energy by combining 2 hydrogen atoms to make 1 helium atom. It is expected to be a stable power source with no carbon emissions, but it has not yet been commercialised. All operating nuclear power plants currently use fission, which splits atomic nuclei.

Proxima Fusion is developing stellarator technology, one approach to nuclear fusion. The company is targeting operation of a fusion demonstration plant, a proof-of-concept stage, in the early 2030s ahead of a commercial power plant. The target timing for the commercial plant is later in the same decade.

The company plans to use the funds to expand production of high-temperature superconducting cables and magnets. It will also develop the engineering and manufacturing systems needed to build a stellarator. It plans to increase hiring in engineering, manufacturing and operations.

Francesco Sciortino (프란체스코 시오르티노), Proxima Fusion co-founder and chief executive officer, said Europe is competing with the United States and China to build the first fusion power plant. He said the fundraising shows Europe can not only invent innovative technology but also build globally competitive companies on that foundation. He also stressed that investors recognise both the urgency and the opportunity in what the company is pursuing.

The investment shows Google continues to take an interest in fusion as a long-term power source. Proxima Fusion said Google’s participation reflects long-term expectations for abundant carbon-free baseload power.

Google has already invested in U.S. fusion company Commonwealth Fusion Systems. In June 2025, it also signed a contract to buy electricity when the company’s first commercial plant begins operating. At the time, Google said fusion has strong potential to be a clean, abundant and inherently safe future energy source and can be built almost anywhere.

Google also pointed to uncertainty around the commercialisation of fusion. Google has said fusion could change the world, but commercialisation is enormously difficult and success is not guaranteed.

In Europe, Proxima Fusion is seen as the fusion startup that has raised the most funding. U.S. companies have raised larger amounts. Dealroom said Commonwealth Fusion Systems raised an additional $863 million in August last year, bringing total funding to $2.9 billion. Helion Energy, backed by Sam Altman, raised $465 million last month, taking total funding to $1.5 billion.

Against this backdrop, Proxima Fusion’s large fundraising shows Europe is stepping up efforts to build an independent development and manufacturing base in the race to commercialise fusion. Key points to watch are whether the demonstration plant development schedule and the scale-up of high-temperature superconducting component production proceed as planned.