Helion, a fusion energy startup, is currently in discussions to supply electricity to OpenAI. Both organizations share backing from Sam Altman. The proposed agreement would involve Helion providing 5% of its projected output—five gigawatts by 2030 and 50 gigawatts by 2035. Microsoft, a partner of OpenAI, previously signed a comparable deal with Helion in 2023 to purchase power beginning in 2028.

If the details reported by Axios are correct, this indicates Helion anticipates being able to quickly scale up the production of its fusion power plants. The company has stated that each reactor will produce 50 megawatts of electricity, which means it would need to construct and deploy 800 reactors by 2030 and an extra 7,200 by 2035. Helion is working urgently to complete its first commercial-scale reactor within this timeframe.

Success in this endeavor would position Helion significantly ahead of its competitors, most of whom are aiming for commercial operations in the early 2030s. The startup secured $425 million in funding last year from investors including Altman, as well as firms like Mitril, Lightspeed, and Softbank.

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While most fusion startups focus on one of two main methods—capturing heat from fusion reactions and using steam turbines to generate electricity—Helion is pursuing a distinct approach. The company is developing a reactor design that employs magnets to directly convert fusion energy into electricity.

Inside its hourglass-shaped reactor, fusion fuel is first transformed into plasma at both ends and then propelled toward the center using magnetic fields. When the plasma streams collide, another set of magnets compresses the merged plasma until fusion occurs. The reaction pushes against these magnets, enabling the direct conversion of that energy into electricity.

Helion is currently testing its Polaris prototype as it progresses toward commercial power generation. In February, the company achieved plasmas within the reactor that reached 150 million degrees Celsius, approaching the 200 million degrees Celsius it believes is necessary for commercial operations.

Although Altman has reportedly resigned as chair of Helion’s board and recused himself from the negotiations, his influence is evident in facilitating this potential partnership. Last year, he also stepped down as board chair of Oklo, a small modular nuclear reactor startup that merged with his acquisition company, AltC.

That move was intended to allow Oklo to explore strategic partnerships with leading AI firms, including potentially with OpenAI, according to a statement from Caroline Cochran, Oklo’s co-founder and chief operating officer, provided to CNBC at the time.