Why Trump’s Truth Social is pairing up with this nuclear startup?

President Trump's media company is teaming up with nuclear fusion energy firm in a $6 billion deal aimed at producing more electricity amid growing demand from power-hungry artificial intelligence data centers.

A merger between Trump Media & Technology and TAE Technologies could create one of the world's first publicly traded fusion energy companies, both companies said Thursday.

What is TAE Technologies?

TAE Technologies is a privately held company based in Foothill Ranch, California. She raises funds for commercial projects. nuclear fusiona method of energy production that proponents say could revolutionize access to electricity. Founded in 1998, the company has built and operated five fusion reactors and raised more than $1.3 billion.

Nuclear fusion uses the same process that allows the sun to produce potentially limitless energy. Experts say this has not been achieved on a large scale because the process is unstable and expensive. TAE is trying to develop the technology needed to reduce the size, cost and complexity of fusion reactors.

“Our talented team, through their commitment and dedication to science, is poised to solve the enormous global problem of energy shortages,” TAE CEO Michl Binderbauer said in a statement. “Recent breakthroughs have prepared us for… commercialization of our fusion technology.”

What is the political history of Truth Social?

Truth Social launched in 2022 as Trump created an alternative to mainstream social networks that were increasingly restricting and blocking his posts and profiles, as well as those of his allies and supporters. The company began trading on the Nasdaq Stock Exchange through a 2024 merger with a special purpose acquisition company.

Although most social media platforms have lifted restrictions on Trump's posts, he still primarily posts on his own platform.

Although Trump and companies he is associated with control more than 40% of the company, most of his investments are managed by others to avoid conflicts of interest during his presidency. Some analysts have speculated that his indirect connection to a new company in a highly regulated industry could also spell trouble.

Promoting TAE would require significant investment and regulation, making the Trump ties a major conflict, Richard Painter, a former White House ethics lawyer in the George W. Bush administration, told The Associated Press.

“He's getting into this industry the same way he got into cryptocurrency a couple of years ago,” Painter said. “Just like the United States government would be completely involved in this. And it's so obvious that there is a huge conflict of interest.”

Trump Media shares, which have fallen more than 80% since their 2024 peak, have soared about 50% since the deal was announced.

The company's market value now exceeds $4.5 billion.

Why do companies merge?

The parent company of Trump's social network, Truth Social, Trump Media & Technology previously had little to do with energy production. The company has agreed to team up with Alphabet-backed TAE Technologies to pave the way for easier access to abundant electricity.

The merger is aimed at helping both companies diversify and raise more money.

It is an effort to combine Trump Media's “significant access to capital” with TAE's “leading fusion technology,” the companies said.

In 2026, they plan to begin construction of the first industrial-scale fusion power plant in history.

“Fusion power plants are expected to provide economical, abundant and reliable electricity this will help America win the artificial intelligence revolution,” the message says.

The boom in popularity of artificial intelligence chatbots like ChatGPT has created a seemingly insatiable new demand for power.

The Georgia Institute of Technology claims that today's artificial intelligence data centers use as much electricity as a small city. As AI models grow, they require even more power.

What are the terms of the deal?

The all-stock deal announced this week values ​​each TAE Technologies share at $53.89, even though it is a private company. Trump Media has agreed to provide TAE with $200 million in cash upon closing, expected in mid-2026.

When the merger is completed, TAE and Trump Media shareholders will each own approximately 50% of the combined company.

Trump Media will become the holding company for TAE, TAE Power Solutions and TAE Life Sciences.