Back to News
NewsJobsInflationInterest RatesFederal Reserve

Opinion: Nuclear Fusion Could Solve Energy Shortages for AI

OpenStar Technologies advances nuclear fusion with a successful magnet levitation, signaling potential for future energy solutions.

Elena Volkov
February 19, 2026 2 min read
Opinion: Nuclear Fusion Could Solve Energy Shortages for AI

OpenStar Technologies, a startup based in Wellington, has made significant progress in nuclear fusion technology, showcasing a successful levitation of a 500 kg magnet in a high-temperature vacuum chamber. This event, attended by prominent figures including New Zealand Prime Minister Christopher Luxon, marks a pivotal step toward sustainable fusion energy.

While the current reactor requires more energy to operate than it generates, the levitation achievement indicates potential for future advancements. CEO Ratu Mataira expressed optimism about their approach, suggesting that a simpler, scalable design may enable the creation of efficient nuclear fusion energy. He noted, “Starting with a simpler setup that can be scaled up and made cheaper is an attractive approach.”

Industry Dynamics

The race for nuclear fusion involves about 50 companies globally, with OpenStar securing nearly $10 billion in investments from notable backers like Bill Gates and Jeff Bezos. Prime Minister Luxon emphasized the transformative potential of nuclear fusion, calling it closer to reality than ever.

The timeline for achieving practical fusion energy remains uncertain, with projections ranging from 10 to 30 years. Other breakthroughs in fusion have been reported in various countries, including a notable achievement by California scientists in 2022.

Mechanisms of Fusion

Nuclear fusion involves plasma, an extremely hot ionized gas, and attempts to replicate the sun's energy-producing processes through magnetic confinement. Traditional methods such as the Tokamak have been used, but innovative designs like the levitated dipole reactor offer potential advantages in efficiency and operational simplicity.

OpenStar plans to unveil a new prototype, Tahi, in two years, followed by a third-generation model, Maui, within five years, targeting commercial viability.

Addressing Energy Needs

The increasing demand for electricity, particularly due to the rise of artificial intelligence, is creating a challenging energy landscape. Morgan Stanley predicts a significant power shortage in the U.S. by 2026, exacerbated by rising electricity costs. Experts suggest nuclear fusion could play a critical role in meeting future energy demands.

However, the development of nuclear fusion is still in its infancy, with experts like Arseniy Grusha cautioning that widespread implementation may take 15 to 25 years, suggesting that existing energy sources will need to bridge the gap in the meantime.

Future Considerations

Some entrepreneurs have proposed that the future of data centers may lie in space, leveraging solar energy and reducing the strain on terrestrial power networks. Initiatives from companies like Tesla and Google aim to explore these possibilities, potentially reshaping how data computing needs are addressed as energy consumption continues to rise.