Support from the White House administration for nuclear energy has led to more investments in the sector and investors are looking for the stocks to watch in the sector. Private nuclear companies are also landing more investments, with one startup picking up support from the world's most valuable company.
NVDA is facing resistance from sellers. See the complete data here.
Nvidia Invests In Nuclear Fusion
Nuclear fusion startup Commonwealth Fusion Systems raised $1.8 billion in 2021 and has counted Alphabet Inc.’s (NASDAQ:GOOG)(NASDAQ:GOOGL) Google and Bill Gates as investors via various investment arms.
The company can now add NVIDIA Corp (NASDAQ:NVDA) to the list of investors via a new $863 million funding round.
With the new raise, the company has raised almost $3 billion, according to a report from TechCrunch. This marks the most funding of any nuclear fusion private company.
"This round of capital isn't just about fusion just generally as a concept, but it's about how do we go to make fusion into a commercial industrial endeavor," Commonwealth Energy co-founder and CEO Bob Mumgaard said.
Both Gates and Google increased their investments in the company during the round, along with Gates-linked entities Breakthrough Energy Ventures and Gates Frontier.
Nvidia, via its NVentures arm, was one of the new investors in the company in the latest funding round. Other notable new investors in the company include Galaxy Interactive, Stanley Druckenmiller and Mitsubishi Corporation.
The company is building Sparc, a nuclear fusion prototype, which it hopes will have notable energy production in 2027. The potential success of Sparc will lead to the company creating Arc, a Virginia power plant, with plans to start construction in 2027 or 2028.
Read Also: 4 Stocks To Play The Nuclear Energy Revival
Tech Companies Backing Nuclear
As bets on public and private nuclear companies heat up, some of the same companies and individuals are found backing the sector.
In June, Gates-backed TerraPower landed an investment from Nvidia via NVentures.
TerraPower hopes to bring its Natrium reactor online by 2030 in the state of Wyoming. The reactor will supply nuclear power to various customers.
Gates serves as the chairman of the board for TerraPower.
Big technology companies such as Google and Nvidia are investing in the nuclear power space as their growth into artificial intelligence ventures spurs a need for more power consumption.
A company now backed by Bill Gates, Google and Nvidia will likely be closely watched by investors in hopes the company will someday go public and be successful in the sector.
Read Next:
Photo: Shutterstock
