In a strategic move to secure its long-term energy needs and reduce dependencies, artificial intelligence leader OpenAI is engaged in early-stage negotiations with fusion energy startup Helion Energy for a massive power purchase agreement. Concurrently, OpenAI has identified its primary backer, Microsoft, as a significant business risk in a document shared with investors.
The potential deal with Helion, first reported by Axios in June 2024, would guarantee OpenAI access to 12.5% of Helion's planned electricity output. This translates to a commitment of five gigawatts by 2030 and a staggering 50 gigawatts by 2035. For context, one gigawatt can power approximately 750,000 homes, highlighting the immense energy demands of advanced AI data centers and large language model training.
Helion's technology, which uses magnetic fields to directly convert fusion energy into electricity, differs from traditional designs. The company's current Polaris prototype has achieved plasmas of 150 million degrees Celsius, with 200 million degrees targeted for commercial viability. Backed by $425 million in a 2023 funding round from investors including Sam Altman, Helion also has a separate power agreement with Microsoft set to begin in 2028.
Simultaneously, OpenAI's internal risk assessment reveals growing concerns over its reliance on Microsoft. In a document circulated during its latest funding round, OpenAI stated that Microsoft supplies "a substantial portion of our financing and compute." The company warned that if the partnership ends or changes, it could hurt its business, finances, and outlook. An OpenAI spokesperson called the disclosure standard legal language, affirming Microsoft "is and will remain a critical long term partner."
This comes as OpenAI diversifies its infrastructure, turning to other cloud providers like CoreWeave, Google, and Oracle. The company recently raised $110 billion from partners including Amazon, Nvidia, and SoftBank, and is seeking another $10 billion. As of December, OpenAI had roughly $665 billion in committed compute spending through 2030.
The strategic connection between these developments is underscored by Sam Altman, a major investor in both Helion and OpenAI. While he has reportedly recused himself from the specific negotiations, his initial backing facilitated the alignment. This mirrors his actions at fission startup Oklo, suggesting a deliberate strategy to create an ecosystem where AI drives demand for clean baseload power.
OpenAI also flagged the global chip supply, particularly reliance on Taiwan Semiconductor Manufacturing Company (TSMC), as a risk, citing potential disruptions from Taiwan-China tensions. Furthermore, the company faces legal challenges, including three lawsuits from Elon Musk or his company xAI and 14 California suits from ChatGPT users' families alleging the product contributed to mental illness or death.
OpenAI reported $13.1 billion in revenue for 2025 and was valued at $730 billion by investors last month. ChatGPT now boasts 900 million weekly active users.
