SoftBank Sun Masayoshi makes a high-profile “stand” for nuclear fusion: replacing natural gas as the main energy source in the AI era after 15 years

The Zhitong Finance App learned that SoftBank Group (SFTBY.US) founder Sun Zhengyi said that in the not-too-distant future, nuclear fusion technology will be the most realistic solution to meet the growing energy needs of artificial intelligence (AI) data centers.

Nuclear fusion has long stimulated the scientific community's limitless imagination. Humans want to use the same process that drives stars to glow and heat to produce cheap, rich, and zero-carbon electricity. Theoretically, nuclear fusion can generate large amounts of energy with lower carbon emissions. It produces far less long-term radioactive waste than traditional nuclear fission, and there is no risk that the chain reaction will get out of control.

Although nuclear fusion technology is still in its infancy after decades of research, this has not stopped some of the world's richest investors from supporting startups that want to overcome this scientific problem. Meanwhile, nuclear fusion is receiving more and more attention as technology companies around the world look for new energy sources to power data centers around the clock. For example, in 2023, Microsoft (MSFT.US) and Helion Energy signed the world's first commercial fusion power generation order. The startup, which was invested by OpenAI founder Sam Altman, plans to start fueling nuclear fusion in 2028. Google (GOOGL.US) has made many investments in the nuclear fusion field, including investments in German nuclear fusion startup Proxima Fusion and US nuclear fusion company TAE Technologies.

Sun Zhengyi said that at this stage, natural gas will still meet the vast majority of data center electricity needs, but he predicts that nuclear fusion will play an important role in energy supply in the future, and it is expected that by 2040, the total installed capacity demand for global data centers will reach 3 terawatts (TW).

Masayoshi Sun said at the annual “SoftBank World (SoftBank World)” conference in Tokyo on Tuesday: “Nuclear fusion will become the primary source of a new, cheaper, cleaner, and safer energy on Earth.” He said, “Is it really appropriate to continue to rely heavily on natural gas to generate electricity? I think in 15 years, nuclear fusion will take its place.”

Sun Zhengyi has always made bold predictions. From claiming that human-like general artificial intelligence (AGI) is about to come up with his vision of “healing human sorrow,” Sun Zhengyi has always been known for his bold ideas. However, making nuclear fusion a viable source of energy still faces many technical and financial challenges.

In recent years, investment in nuclear fusion companies has grown rapidly, and many companies have moved from basic research to prototype construction. According to a report released on Monday, since the Fusion Industry Association began tracking relevant data in 2021, nuclear fusion developers have received a total of 14.2 billion US dollars in financing. Over the past year, global investment in nuclear fusion surged 69% to a record 4.5 billion US dollars, reflecting the continued rise in market confidence that this emerging industry is expected to build commercial fusion power plants and achieve grid-connected power supply. Meanwhile, the US Department of Energy has proposed targets to promote large-scale application of nuclear fusion technology in the mid-2030s.

The global nuclear fusion sector ushered in a new milestone on Monday. Canadian fusion technology company General Fusion Group officially landed on NASDAQ this Monday after completing the merger with SPAC company Spring Valley Acquisition Corp III. The stock price closed up 20.61% on the first day, highlighting investors' strong interest in the world's first listed nuclear fusion company.

However, while this technology is promising, it is extremely complex. It is expected to be able to provide almost unlimited clean electricity, yet so far only a few countries have made breakthroughs in basic technology. By contrast, natural gas is currently in sufficient supply, accounting for more than one-fifth of the world's electricity generation. Although burning natural gas produces lower greenhouse gas emissions than oil and coal, the combustion process still produces carbon emissions that cause global warming.