President Trump’s media company is merging with a fusion energy company in a $6 billion deal aimed at generating more electricity amid growing demand from artificial intelligence data centers.
The merger of Trump Media & Technology and TAE Technologies could create the world’s first publicly traded fusion energy company, the companies announced Thursday.
What is TAE Technologies?
TAE Technologies is a private company based in Foothill Ranch, California. The company is raising commercial-scale funding for a method of energy production that supporters 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 powers the sun and produces potentially limitless energy. Experts say it has not been achieved on a large scale because the process is unstable and expensive. TAE is working to develop the technologies needed to reduce the size, cost, and complexity of fusion reactors.
“Through our commitment and dedication to science, our talented team is poised to solve the immense global challenge of energy scarcity,” TAE CEO Michel Binderbauer said in a statement. “Recent breakthroughs set the stage for commercialization of fusion technology.”
What is the political history of Truth Social?
Truth Social was launched in 2022, when President Trump created an alternative to mainstream social media, which increasingly restricted and blocked posts and profiles not only of President Trump but also of his allies and supporters. In 2024, the company merged with a special purpose acquisition company and began trading on the Nasdaq Stock Exchange.
Although most social media platforms have lifted restrictions on Trump’s posts, he still posts primarily on his own platform.
Mr. Trump and companies associated with him control more than 40% of the company’s stock, but many of his investments are managed by others to avoid conflicts of interest during his presidential term. Some analysts have suggested that his indirect ties to startups in highly regulated industries could also lead to problems.
Richard Painter, a former White House ethics lawyer in the George W.
“He’s trying to jump into this industry the same way he jumped into crypto a few years ago,” Painter said. “The U.S. government is definitely going to be fully involved in that. And it’s clear that there’s a huge conflict of interest.”
Trump Media stock, which had fallen more than 80% from its 2024 high, has soared about 50% since the deal was announced.
The company’s market value currently exceeds $4.5 billion.
Why are the two companies merging?
Trump Media & Technology, the parent company of President Trump’s social media site Truth Social, has traditionally had little to do with energy production. The company has agreed to merge with Alphabet-backed TAE Technologies in a bid to pave the way for easier access to abundant power.
The merger is intended to help both companies diversify and raise more capital.
This is an attempt to combine Trump Media’s “significant access to capital” with TAE’s “cutting-edge fusion technology,” the companies said in a release.
They plan to begin construction of the first-ever utility-scale fusion power plant in 2026.
“Fusion power plants are expected to provide economical and abundant energy that will help America win the AI revolution,” the release states.
The boom in popularity of AI chatbots such as ChatGPT has created a seemingly insatiable new demand for electricity.
Georgia Tech says modern AI data centers use as much power as a small city. As AI models grow, they demand more power.
What are the trading terms?
The all-stock deal announced this week values TAE Technologies at $53.89 per share, even though it is privately held. Trump Media has agreed to provide TAE with $200 million in cash at closing, expected in mid-2026.
Once the merger is complete, 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.
