The United States Department of Commerce has committed $389 million in research and development funding to four semiconductor firms under the CHIPS and Science Act, targeting power semiconductors needed for commercial fusion and AI data centers. The investment may eventually ripple into Bitcoin mining as miners increasingly pivot to AI hosting and high-performance computing in pursuit of cheaper electricity.
The largest award, up to $175 million, goes to fusion venture Helion for high-voltage power semiconductors and energy modules used in its reactors, with an additional $50 million in private capital. Commonwealth Fusion Systems will receive up to $85 million for radio frequency plasma heating chips and power electronics. Vertical Semiconductor, an MIT spinout, is set for up to $73 million to develop vertical gallium nitride power chips for AI server racks, while Sibelco will receive up to $56 million for high-purity quartz. Commerce will take non-controlling, non-voting equity stakes in each recipient.
Commerce Secretary Howard Lutnick said the move is aimed at accelerating American semiconductor innovation to strengthen domestic energy and power resources. Helion CEO David Kirtley added that deploying fusion power plants at scale requires accelerating semiconductor development.
The crypto connection lies in rack-level power efficiency. Bitcoin miners have spent years acquiring data center space and electricity for AI clients, and the same pressures to lower cost per hashrate apply to AI workloads. Improved power conversion chips, and eventually competitively priced fusion power, could reduce one of the largest shared costs for miners and AI operators.
Separately, macro risk appetite remains under pressure. China’s mainland stock market has lost about $2.4 trillion in value since May, with the STAR 50 tech index down 40% in under four months. Goldman Sachs estimates AI companies account for 42% of Chinese share market value and 57% of trading. With Brent crude above $111 and 10-year Treasury yields near 5%, Bitcoin briefly traded below $80,000 ahead of the Federal Reserve’s October 28 decision.
