As advances in computing and AI have quickened the pace of research and development, the sector has become a hotbed of startup and investor activity. Inside a fusion reaction, atoms are compressed and heated until they form a fourth state of matter known as plasma. When the plasma reaches the right temperature and pressure, those atoms begin to fuse, releasing tremendous amounts of energy in the process.
General Fusion's recent layoffs and funding challenges underscore the increasing difficulties of the fusion industry as companies struggle for financial viability in a competitive landscape.