Trump Media stock surges more than 30% on surprise merger with energy firm TAE
Trump Media & Technology Group (DJT) stock surged more than 35% on Thursday after the parent company of Truth Social announced a merger with fusion power firm TAE Technologies.
The deal underscores a bet on the energy demands from AI and data centers, and the technologies that could prevail. TAE’s backers include tech giant Google (GOOG) (GOOGL), Goldman Sachs (GS) and oil major Chevron (CVX).
The agreement, valued at more than $6 billion, is a bet on the future of fusion, a type of nuclear technology that mimics the way stars produce light and heat. Fusion is carbon-free and produces significantly less radioactive waste than traditional nuclear power.
The technology is not yet commercially available, but the deal includes an immediate $200 million in cash at signing. This funding is intended to facilitate the start of construction on the company’s first utility-scale fusion power plant in 2026.
Under the terms of the deal, TMTG shareholders and TAE shareholders will each own approximately 50% of the newly combined entity.
Upon closing, TMTG, which is currently majority owned by President Trump’s Revocable Trust, will serve as the holding company for Truth Social and TAE Technologies, among other entities.
Energy dominance and independence has been a focus of Trump’s administration.
In October the Department of Energy announced a fusion roadmap.
Energy Secretary Chris Wright highlighted the department’s prioritization of modernizing the country’s energy infrastructure, with a focus on investing in fusion energy.
Wall Street strategists have pointed out energy as a major bottleneck for AI and datacenter infrastructure. Hyperscalers have been signing deals with energy providers directly to meet their AI power demands.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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