At the start of 2026, the passion stays excessive.
The funding neighborhood has realized that Dongsheng Fusion (Shanghai) Technology Co., Ltd. (hereinafter known as “Dongsheng Fusion”) has accomplished an angel – spherical financing of a whole bunch of hundreds of thousands of yuan. Sequoia China, IDG Capital, Zhongke Chuangxing, Hillhouse Capital, CDH Baifu, and Loongson Venture Capital have joined forces on this funding. Such an opulent lineup is uncommon in earlier angel – spherical financings.
Dongsheng Fusion is a group from Yangpu, Shanghai, collectively incubated by Fudan Science and Technology Innovation, Shanghai Future Industry Fund, Haitong International Innovation Center, Zhongke Chuangxing, and Qiying Tongchuang. Led by Professor Xu Min from the Institute of Modern Physics of Fudan University, the group has launched the primary – technology scientific experimental gadget mission “Morning Light”, aiming to advertise the engineering realization of deuterium – helium – 3 fusion.
There is a saying within the trade: “The end of AI is energy, and the end of energy is controllable nuclear fusion.” In this race essential for the long run vitality future of humanity, Shanghai has taken the lead once more.
Super angel – spherical: Sequoia, IDG, Hillhouse, and CDH all invested
What’s the background of Dongsheng Fusion?
Let’s begin with the Magnetic Confinement Fusion Team of Fudan University. Led by Professor Xu Min from the Department of Nuclear Science and Technology of the Institute of Modern Physics of Fudan University, this group focuses on excessive – temperature and robust – magnetic – discipline magnetic confinement fusion and synthetic – intelligence – pushed fusion physics analysis, and is dedicated to selling the engineering realization of nuclear fusion vitality.
In July 2025, the Magnetic Confinement Fusion Team of Fudan University led the institution of Dongsheng Fusion in Shanghai. The supporting events additionally embody Fudan University, Shanghai Future Industry Fund, Haitong International Innovation Center, Zhongke Chuangxing, and Qiying Tongchuang. Its core technical group comes from high universities and analysis establishments at dwelling and overseas. They have lengthy been engaged in magnetic confinement nuclear fusion science and engineering know-how analysis, and have wealthy expertise within the design, building, experimental operation, and mission administration of huge – scale fusion gadgets.
Different from the worldwide mainstream deuterium – tritium route, Dongsheng Fusion has chosen the neutron – free deuterium – helium – 3 fusion route (D + 3He -> H + 4He + vitality) – it mainly doesn’t contain nuclear and tritium, with excessive security, low complete value, and is “cleaner” and extra “futuristic”.
The mission primarily contains two main core technological breakthroughs. One is the excessive – temperature superconducting sturdy – magnetic – discipline magnet, which makes use of superior excessive – temperature superconducting supplies to realize gadget compactness and robust – magnetic – discipline confinement, considerably bettering plasma stability and fusion effectivity. The different is the substitute – intelligence – empowered plasma management, which realizes lengthy – time period exact management and operation optimization of the plasma by means of AI algorithms and builds an clever experimental platform.
In the subsequent 12 years, Dongsheng Fusion plans to realize the purpose of web vitality acquire (Q > 1) from deuterium – helium – 3 fusion in three levels. Currently, the primary – technology “Morning Light” experimental gadget mission has been formally launched.
Once profitable, it would result in practically infinite clear vitality.
This additionally implies that the start line of Dongsheng Fusion is rather more tough and difficult than the mainstream path. “We are all working hard for the ultimate dream of human energy. During the process, we will integrate with each other. It doesn’t matter who comes first or later. In the end, all routes will converge, and it will naturally present itself in a form most expected by society, the people, and the country.” Professor Xu Min as soon as mentioned in an interview with Fudan Science and Technology Innovation.
VC traders have additionally joined this revolutionary scientific and technological wave of humanity. Just half a 12 months after its institution, Dongsheng Fusion has acquired angel – spherical financing, bringing collectively effectively – identified establishments resembling Sequoia China, IDG Capital, Zhongke Chuangxing, Hillhouse Capital, CDH Baifu, and Loongson Venture Capital.
Shanghai is closely investing in nuclear fusion
Through Dongsheng Fusion, a “fusion city” comes into view.
An spectacular scene was in July final 12 months when the itemizing ceremony of China Fusion Energy Co., Ltd. was formally held in Shanghai. The firm will undertake the magnetic confinement tokamak because the technical route and observe the three – step improvement stage of pilot experimental reactor, demonstration reactor, and industrial reactor to finally obtain the purpose of business software of fusion vitality.
Behind it, seven traders emerged – China National Nuclear Corporation, China National Nuclear Power Co., Ltd., CNPC Kunlun Capital, Shanghai Fusion, Guolv Fund, Zhejiang Energy Electric Power Co., Ltd., and Sichuan Fusion, asserting a joint funding of 11.492 billion yuan.
Among them, Shanghai Fusion was established in 2024, collectively established by Shanghai Future Industry Fund, Shanghai State – owned Assets Investment Co., Ltd., Shanghai Electric Group Co., Ltd., Minhang JinTou, and Shenergy Group Co., Ltd., with the Shanghai State – owned Assets Supervision and Administration Commission because the precise controller. Before this, Shanghai Future Industry Fund introduced its deliberate strategic funding within the fusion firm, which is its first direct – funding mission since its institution and in addition a significant strategic format of Shanghai State – owned Assets Investment Co., Ltd. sooner or later vitality discipline.
Not solely that, plenty of star nuclear fusion firms have been born in Shanghai. In November final 12 months, Yixi Technology, whose core members are from the excessive – temperature superconducting group of Shanghai Jiao Tong University, accomplished a brand new spherical of financing, collectively invested by Shanghai Science and Technology Innovation Group, Shanghai Future Industry Fund, and Jiaotong Mother Fund. This is the third spherical of financing accomplished by Yixi Technology in 2025. Behind it stand establishments resembling Zhongke Chuangxing, CDH Baifu, Daohe Long – time period Investment, Furong Investment, Huakong Fund, Fudaolecheng, Minhang JinTou, Xichuangtou, and Chengdu Konggang.
Also in Shanghai, Nova Fusion, which was established solely 4 months in the past, acquired 500 million yuan in angel – spherical financing, setting a brand new excessive for a single – spherical financing of home non-public nuclear fusion firms at the moment. The record of traders contains each state – owned capitals such because the Zhongguancun Independent Innovation Special Fund of the National Social Security Fund and Lingang Science and Technology Innovation Investment, in addition to effectively – identified enterprise capital establishments resembling Gao Rong Venture Capital, Legend Capital, Photosynthetic Venture Capital, Huakong Fund, Mingshi Venture Capital, and Yunqi Capital. When deciding to begin a enterprise, the group unanimously selected Shanghai when discussing the place to arrange the corporate.
Born in Shanghai, Energy Singularity has additionally accomplished two rounds of financing in succession, with NIO Capital, Sequoia China Seed Fund, BlueRun Ventures, and Mihoyo amongst its backers. In 2025, the massive – dimension excessive – temperature superconducting toroidal discipline magnet – Jingtian Magnet, developed by Energy Singularity, was efficiently excited to 21.7 Tesla, setting a brand new document for the very best magnetic discipline of a giant – aperture excessive – temperature superconducting D – formed magnet.
There can be Shanghai Star Ring Fusion Energy, surrounded by establishments resembling Sequoia China Seed Fund, Zhongke Chuangxing, Inno Angel Fund, Tsinghua Alumni Seed Fund, 91VC, Shunwei Capital, Xianfeng Capital, Lenovo Star, and Hony Capital. In addition, Shanghai has additionally seen the emergence of firms specializing in nuclear fusion know-how resembling Superconducting New Energy and Honghu Fusion. Moreover, the tremendous – main firm Shanghai Superconductor was born in Zhangjiang as early as 2011 and is now making ready to record on the STAR Market.
All these are a microcosm of Shanghai’s full – scale format of future industries. As Yang Zhao, the founding father of Energy Singularity, as soon as mentioned –
“By 2035, China may see the first kilowatt – hour of electricity generated by controllable nuclear fusion. It seems that only in Shanghai can this be accomplished.”
Humanity’s ideally suited final vitality is changing into a actuality
Why Shanghai?
First, let’s clarify the idea. So – referred to as nuclear fusion, in a well-liked sense, refers back to the mixture of two gentle atomic nuclei right into a heavier one, releasing an enormous quantity of vitality. Since it has the identical combustion mechanism because the solar, the controllable nuclear fusion gadget is usually referred to as an “artificial sun”, however it’s nonetheless within the experimental stage.
With virtually zero value, zero air pollution, and infinite availability, controllable nuclear fusion is thought to be the “ultimate energy”. Theoretically, with only a few grams of reactants, it’s doable to generate one tera (trillion) joules of vitality, which is roughly the vitality wanted by an individual in a developed nation in 60 years.
It might be mentioned that when the massive – scale commercialization of controllable nuclear fusion is achieved, the best way of human manufacturing and life will probably be fully subverted. Therefore, the seemingly sci – fi and chopping – edge nuclear fusion has change into a battleground for all. This 12 months, the 14th Five – Year Plan has included fusion vitality within the “key areas of future industries” for the primary time, proposing to “promote nuclear fusion energy to become a new economic growth point”.
Shanghai has been sparing no effort. It has beforehand successively issued paperwork such because the “Action Plan for Shanghai to Build an Innovation High – ground for Future Industries and Develop and Expand Future Industry Clusters” and the “Action Plan for the High – quality Development of Shanghai’s Nuclear Power Industry (2024 – 2027)”, itemizing controllable nuclear fusion as a key future vitality trade to be cultivated and selling the analysis and improvement of key applied sciences resembling magnetic – inertial confinement nuclear fusion.
Meanwhile, within the scientific analysis discipline, Shanghai has shaped a bonus within the intensive provide of skills and applied sciences within the discipline of fusion: universities and analysis establishments resembling Fudan University, Shanghai Jiao Tong University, ShanghaiTech University, and the Shanghai Institute of Optics and Fine Mechanics of the Chinese Academy of Sciences have deployed a number of fusion R & D groups specializing in completely different technical routes, and an trade – academia – analysis innovation ecosystem round nuclear fusion is rising.
Now, the preliminary outcomes are exhibiting. Quite a lot of nuclear fusion startup groups have chosen to find their firms in Shanghai. “In addition to breakthrough R & D and innovation capabilities, government attention, capital support, and a complete industrial chain are also the keys to the rapid growth of enterprises after landing.” Wang Chao, the CEO of Superconducting New Energy, mentioned in an interview with the media. Many upstream and downstream prospects are additionally concentrated right here. Most excessive – temperature superconducting tape suppliers are clustered upstream, and fusion firms with varied paths are clustered downstream, offering comfort for enterprise R & D, manufacturing, and cooperation.
Global scientists have been exploring controllable nuclear fusion for a very long time. However, as a result of unprecedented technical problem, the query of “when will commercial nuclear fusion power generation be realized” stays unclear. There is a well-liked saying within the trade: Nuclear fusion is a chopping – edge know-how that’s at all times “50 years away from success”.
This implies that the technical threshold of controllable nuclear fusion is extraordinarily excessive, and the industrialization cycle is lengthy. It is doomed to be a trigger spanning a number of generations. In the enterprise capital circle, increasingly establishments appear to be keen to take a position actual cash within the discipline of controllable nuclear fusion, and the scene of “grabbing shares” has begun. Mi Lei, the founding accomplice of Zhongke Chuangxing, reminded that (on this discipline) not solely ardour but in addition endurance is required, and we should respect goal legal guidelines.
The highway forward is lengthy, however there are at all times those that dare to wager on disruptive innovation. As Professor Xu Min envisioned, “We look forward to the elimination of war and hunger, the transformation of deserts into oases, and humans leaving the earth to explore the deep space of the universe and find a new home. All these require energy support. And at present, fusion seems to be the only option within the scope of human cognition.”
The future is coming in full pressure.
This article is from the WeChat official account “Investment World” (ID: pedaily2012), written by Zhou Jiali and reprinted by 36Kr with authorization.