EMERGING TECH RESEARCH Climate Tech VC Trends VC activity across the climate tech ecosystem Q4 2025 REPORT PREVIEW The full report is available through the PitchBook Platform. Institutional Research Group John MacDonagh Senior Research Analyst, Climate Tech john.macdonagh@pitchbook.com pbinstitutionalresearch@pitchbook.com Contents | Climate tech landscape | 3 | | --- | --- | | Quarterly analysis | 4 | | Key takeaways | 4 | | VC activity | 4 | | AI themes | 7 | | Conclusions | 8 | | Climate tech VC deal sum ...

Inertia Enterprises has raised $450 million to build one of the world’s most powerful lasers, which it hopes will serve as the foundation of a grid-scale power plant the fusion startup intends to start construction on in 2030. Inertia Enterprises is building on technology developed at the Lawrence Livermore National Laboratory’s National Ignition Facility. The NIF is the site of the world’s only controlled fusion reactions that have reached scientific breakeven, in which the reaction releases more energy ...

Core Insights - The CES event showcases a wide array of innovations, particularly in AI and robotics, indicating a significant trend towards integrating advanced technology into everyday products and services [1][4]. AI and Robotics Innovations - Siemens and Nvidia announced a partnership aimed at launching an AI-driven industrial revolution to enhance manufacturing and supply chain management [2]. - Razer introduced AI-powered prototypes, including a gaming headset that functions as a general-purpose assistant and an AI desk companion for gaming advice and life organization [5][7]. - Oshkosh Corporation presented autonomous airport robots designed to streamline post-landing processes, aiming to reduce delays and maintain efficiency during adverse weather conditions [8][9]. - Roborock unveiled a vacuum cleaner with legs that can navigate stairs, showcasing advancements in home cleaning technology [10]. Health and Wellness Technology - Withings launched the Body Scan 2, a smart scale that measures 60 biomarkers in 90 seconds, aimed at promoting health monitoring and longevity [11][12]. Energy Sector Developments - Commonwealth Fusion Systems, in collaboration with Nvidia and Siemens, is utilizing AI to accelerate the development of nuclear fusion as a carbon-free energy source, with a prototype fusion power plant, SPARC, nearing completion [13][14][15].

Core Insights - The CES event showcases a wide array of innovations, including AI companions, health tech, and wearables, attracting large crowds on its second day [1] Group 1: AI and Robotics Innovations - Siemens and Nvidia announced an expanded partnership to launch an AI-driven industrial revolution aimed at transforming manufacturing and supply chain management [2] - Razer introduced AI-powered prototypes, including an over-ear gaming headset that functions as a general-purpose assistant and an AI desk companion for gaming advice and life organization [5][7] - Oshkosh Corporation presented autonomous airport robots designed to streamline post-landing processes, aiming to reduce delays and maintain efficiency during adverse weather conditions [9] Group 2: Health and Wellness Technology - Withings unveiled the Body Scan 2, a smart scale that measures 60 biomarkers in 90 seconds, providing personalized health advice and a health trajectory for users [12][13] - The scale is priced at $600 and will be available in spring, with a subscription model for the accompanying app [13] Group 3: Energy Innovations - Commonwealth Fusion Systems, NVIDIA, and Siemens are collaborating to accelerate nuclear fusion as a carbon-free energy source, with a prototype fusion power plant called SPARC nearing 70% completion [14][16] - The partnership aims to create a "digital twin" of the physical machine to expedite progress and data analysis [15]

Core Insights - The commercialization of controlled nuclear fusion technology is accelerating due to surging energy demand and advancements in artificial intelligence computing power [1][3] - A significant merger involving Trump Media & Technology Group and TAE Technologies, valued at $6 billion, highlights the increasing investment interest in the nuclear fusion sector [1][3] - TAE Technologies, backed by major investors like Google and Goldman Sachs, plans to build its first commercial-scale fusion power plant by 2026 [3][4] Investment Landscape - The nuclear fusion investment landscape is heating up, with major players like Helion Energy and Commonwealth Fusion Systems (CFS) making strides in the U.S. [4][6] - Helion Energy has begun construction on its first commercial fusion power plant and has secured a power purchase agreement with Microsoft for electricity starting in 2028 [4][6] - CFS has raised approximately $3 billion and is collaborating with MIT to develop high-temperature superconducting magnets for its SPARC device [4][6] Technological Advancements - Chinese companies are rapidly advancing in nuclear fusion technology, holding the most patents globally and achieving significant milestones [6][7] - The Energy Singularity team in Shanghai has set a new record with a magnet strength of 21.7T, surpassing previous records held by MIT and CFS [6][7] - Other Chinese startups, like Hanhai Fusion and Xinghuan Fusion, are also making progress in fusion technology, with some exploring commercial applications in related fields [6][7] Challenges and Market Dynamics - Despite technological breakthroughs, nuclear fusion still faces challenges in achieving grid-level commercial application, with current operational times limited to seconds [7] - The funding landscape shows a stark contrast, with the U.S. investing approximately $5 billion in the last five years compared to China's $500 million, highlighting the scale of investment in the sector [7] - The long-term nature of nuclear fusion investments requires patience from investors, with timelines potentially extending 8 to 10 years [7]

Company Overview - Trump Media & Technology Group Corp. has seen its shares surge nearly 70% following a $6 billion merger agreement with fusion startup TAE Technologies, resulting in shareholders of both companies owning approximately half of the combined entity on a fully diluted equity basis [1] - TAE Technologies, founded in 1998, aims to deploy commercial, utility-scale fusion energy and plans to begin construction of its first fusion power plant in 2026, which is expected to generate between 350-500 MWe [3] Investment and Funding - TAE Technologies has raised over $1.3 billion from notable investors including Google, Chevron Technology Ventures, Goldman Sachs, and Sumitomo Corporation of America [4] - The company is utilizing neutral particle beams and magnets in its fusion reactors, diverging from the traditional laser approach [4] Nuclear Fusion Technology - Nuclear fusion is recognized for its potential to generate four times as much energy as nuclear fission from the same mass of fuel, producing significantly less radioactive waste and eliminating the risk of meltdown [6] - The process of nuclear fusion involves combining hydrogen atoms to create helium and release energy, a method that mirrors the energy generation in stars [5] Global Fusion Developments - The global nuclear renaissance has reignited interest in nuclear fusion, with companies like Helion Energy making strides in commercial fusion energy, including a power purchase agreement with Microsoft to supply electricity starting in 2028 [9] - China has rapidly advanced in the fusion sector, holding more fusion patents than any other country and achieving significant breakthroughs with its private fusion company, Energy Singularity, which has developed the HH70 superconducting tokamak [13][14] Future Prospects - Energy Singularity's next-generation device, HH170, is expected to be completed by 2027 and aims for a tenfold energy gain, a critical milestone for commercial viability [15] - Commonwealth Fusion Systems, based in Massachusetts, is also pursuing small reactor designs and has secured around $3 billion in funding to develop its SPARC reactor, which aims to achieve net energy fusion [18]

Core Insights - The fusion industry has seen unprecedented growth in 2023, driven by record private funding and political support, particularly through the new Department of Energy Office of Fusion [1] - The TMTG-TAE merger represents a significant shift in the fusion landscape, creating the first large-cap, pure-play fusion stock on a major U.S. exchange, which could enhance U.S. leadership in fusion energy [3][4] - The merger is viewed as a bold experiment to crowd-fund the next generation of baseload energy, with potential implications for global energy markets and the demand for energy to power AI [2] Funding Landscape - U.S. fusion companies have historically relied on private capital, with 91.9% of funding coming from this source, contrasting sharply with China's state-directed funding model [1] - The TMTG-TAE deal allows for direct public investment in fusion, providing a new avenue for capital that venture capital cannot match, potentially accelerating the commercialization of fusion technology [1][4] Market Dynamics - The TMTG-TAE merger signifies the end of "stealth mode" for fusion, pushing it into the public eye and capital markets, which will now track its progress through SEC filings and project finance structures [4] - Competitors in the fusion space, such as Helion and Commonwealth Fusion Systems, may feel pressured to pursue public listings to avoid missing out on the wave of public funding [4] Regulatory and Technical Challenges - The ambitious timeline for TMTG-TAE to begin construction of a utility-scale fusion plant by 2026 is contingent on overcoming various technical and regulatory hurdles [6] - The power sector must adapt to the new dynamics of fusion funding, prioritizing commercial projects for high-demand sites and requiring regulatory support for new grid connections and contract approaches [7] Public Perception and Investment Psychology - The merger reframes fusion as a critical component for meeting the energy demands of AI and data centers, positioning it as a reliable energy source free from geopolitical constraints [8] - The association with a high-profile public company like TMTG is expected to attract a diverse range of investors, from AI hyperscalers to clean energy advocates, thereby mainstreaming fusion in energy discussions [8]

Company Overview - Trump Media and Technology Group (TMTG) is merging with TAE Technologies, a company focused on fusion power, in an all-stock transaction valued at over $6 billion [1] - TMTG is the parent company of Truth Social, a microblogging platform launched after former President Trump was banned from major social media platforms [2] - TMTG went public last year through a merger with a special-purpose acquisition company (SPAC) and reported a loss of $54.8 million on revenue of $972,900 for the quarter ended September 30, 2025 [2] Financial Position - TMTG has amassed $3.1 billion in assets, primarily through cryptocurrency investments and partnerships, despite low revenue generation from its platforms [3] Fusion Power Initiative - TMTG's acquisition of TAE Technologies aims to establish America's global energy dominance, with plans to construct the world's first utility-scale fusion power plant (50 MWe) next year and additional plants expected to be 350-500 MWe [4] - TAE Technologies has raised nearly $2 billion since its inception, with a recent funding round of $150 million from investors including Google and Chevron [8] - TAE has faced challenges in making its fusion designs work but is also developing a division focused on life sciences, selling a particle accelerator for cancer treatment [9] Industry Context - The fusion power sector is competitive, with other companies like Commonwealth Fusion Systems and Helion also pursuing the goal of integrating fusion power into the grid by the early 2030s [6] - Successful fusion startups could provide gigawatts of clean energy using hydrogen isotopes from seawater, with the process involving heating and compressing these isotopes to create plasma [7]

Core Insights - Siemens will focus on the industrial AI revolution during its keynote at CES 2026, exploring how AI reshapes various operational aspects from design to execution [1] - A significant highlight will be the dialogue between Siemens CEO Roland Busch and NVIDIA CEO Jensen Huang, discussing the next phase of industrial AI development and the responsible scaling of smart technologies [1] Group 1 - The keynote will feature discussions with various industry leaders, including Microsoft and PepsiCo executives, on the integration of AI technologies and operational transformations [2] - The event is scheduled for January 6, 2026, at 8:30 AM PST at the Venetian Hotel [2] - Siemens will collaborate with Amazon Web Services (AWS) to set up a joint live broadcast space at the Las Vegas Convention Center, inviting industry leaders to share insights on the implementation of industrial AI [2]

Core Insights - Siemens announced a keynote at CES 2026 featuring industry and technology leaders [1] - The keynote will include discussions on how AI is transforming manufacturing, infrastructure, and transportation [1] - Executives from NVIDIA, Microsoft, PepsiCo, and Commonwealth Fusion Systems will participate in the event [1] Company and Industry Summary - Siemens' President and CEO Roland Busch will lead the keynote session [1] - The focus of the conversations will be on the impact of AI on the physical world [1] - The event aims to highlight the collaboration between major companies in advancing technology [1]