Layoffs hit General Fusion as fusion power startup runs short on cash

The 23-year-old company, which many still describe as a startup, is Canada’s leading entrant in the race for commercial fusion power. It has raised $440 million, according to PitchBook, including a $22.66 million round that closed in July. Backers include Jeff Bezos, Temasek, and BDC Capital. But that money hasn’t been enough for the company to show that its unique approach to fusion is viable.

General Fusion’s plight highlights the challenges that face the fusion industry.

To date, only one device has been able to hit so-called scientific breakeven, a milestone that’s significant historically but not commercially. To hit commercial breakeven, reactors need to produce dozens of times more energy than has been demonstrated so far.

The road to those milestones has proven extraordinarily costly. Though General Fusion’s tally may seem impressive, it is middle of the pack. Commonwealth Fusion Systems has raised over $2 billion, Helion has pulled in over $1 billion, and upstart Pacific Fusion has been pledged $900 million in its Series A alone.

Part of General Fusion’s challenge is that it’s taking a different approach than many of its competitors.