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U.S. fusion breakthrough could change world's energy future

On Tuesday, the head of the Department of Energy and other federal scientific leaders announced that a fusion reaction run at the Lawrence Livermore National Laboratory in California achieved net energy, meaning the reaction generated more energy than was put in to initiate the reaction. It is the first time humankind has achieved this landmark.

Fusion is the way that the sun makes power, but recreating a useful fusion reaction here on earth has eluded scientists for decades. Achieving net positive energy paves the way for fusion to move from a lab science to a usable energy source, although large scale commercialization of fusion could still be decades away.

Fusion is particularly attractive given the increasing urgency of climate change because if it can be commercialized at scale, it produces no carbon emissions, nor does it produce the long-lasting nuclear waste associated with nuclear fission, which is the type of nuclear energy used to make energy today.

The National Ignition Facility target chamber at the Lawrence Livermore National Laboratory is where scientists shoot lasers and watch and measure what happens when those lasers collide on a fuel source. Temperatures of 100 million degrees and pressures extreme enough to compress a target up to 100 times the density of lead are created in this facility.

Photo by Damien Jemison/ Lawrence Livermore National Laboratory

“Monday, December 5, 2022 was an important day in science,” Jill Hruby, the National Nuclear Security Administration Administrator, said at a press conference announcing the news on Tuesday in Washington D.C. “Reaching ignition in a controlled fusion experiment is an achievement that has come after more than 60 years of global research, development, engineering and experimentation.”

Reaching ignition means the fusion experiment produced more energy from fusion than the laser energy that used to drive the reaction. Since the experiment, the team has been analyzing data to be able to make this official announcement.

“This is important. Earlier results were records, but not yet producing more energy out than was put in,” Andrew Holland, the CEO of the industry’s trade group, the Fusion Industry Association, told CNBC. “For the first time on Earth, scientists have confirmed a fusion energy experiment released more power than it takes to initiate, proving the physical basis for fusion energy. This will lead fusion to be a safe and sustainable energy source in the near future.”

In the experiment on Dec. 5, about two megajoules (a unit of energy) went into the reaction and about three megajoules came out, said Marvin Adams, Deputy Administrator for Defense Programs at the National Nuclear Security Administration. “A gain of 1.5,” Adams said.

For the experiment, super high powered lasers are all directed at a very tiny fuel target at the National Ignition Facility at the Lawrence Livermore National Laboratory. “During experiments, 192 high energy lasers converge on a target about the size of a peppercorn heating a capsule of deuterium and tritium to over 3 million degrees Celsius and briefly simulating the conditions of a star,” Hruby said.

The main mission of the National Lab is studying nuclear power for use in national defense, and this nuclear fusion research is part of an effort established in 1996 by then President Clinton to maintain confidence in the safety of nuclear weapons stockpiles without full-scale nuclear testing.

But this discovery has massive implications for clean energy, too. In addition to the national security work, “we have taken the first tentative steps towards a clean energy source that could revolutionize the world,” Hruby said.

While this scientific breakthrough that is being celebrated at the highest levels of government, it will be many years before fusion power plants are likely to provide clean abundant energy.

“This is one igniting capsule, one time. And to realize commercial fusion energy, you have to do many things. You have to be able to produce many, many fusion ignition events per minute,” Kim Budil, the director of the Lawrence Livermore Lab, said on Tuesday.

“You have to have a robust system of drivers to enable that. So, you know, probably decades. Not six decades, I don’t think. Not five decades, which is what we used to say. I think it’s moving into the foreground and probably, with concerted effort and investment, a few decades of research on the underlying technologies could put us in a position to build a power plant.”

Omar A. Hurricane, Chief Scientist for the Inertial Confinement Fusion Program at Lawrence Livermore, explained, “What remains to be done from here is largely engineering, of increasing the laser energy efficiency and increasing the target energy gain with further target optimizations.”

Hurricane added, “This new result does indeed bring commercial fusion closer, as it demonstrates that there are no fundamental physics obstacles. It is starting to feel like we are entering the ‘Fusion Age.'”

One step forward in the ‘Fusion Age’

Interest in fusion has increased dramatically in recent years as concerns about climate change and energy security have become more acute.

More than 90 nuclear power reactors currently operate in the United States, but those nuclear reactors employ nuclear fission, which is when a neutron smashes into a larger atom, causing it to split into two smaller atoms and releasing a lot of energy. Nuclear fission reactions do not release any carbon dioxide emissions and therefore are considered clean energy, according to the U.S. Department of Energy.

The United States got approximately 19 percent of its utility-scale electricity generation from those nuclear power plants in 2021, according to the U.S. Energy Information Administration, and the energy from nuclear fission reactors represents half of the clean power generated in the United States, according to the Department of Energy.

However, those reactors generate long-lasting nuclear radioactive waste, and most countries, including the United States, currently have no long-term storage facilities for that waste. Efforts to build a permanent, underground geologic storage facility for nuclear waste have thus far been stymied in the United States.

Fusion happens when two atoms slam together to form a heavier atom, releasing huge amounts of energy without generating carbon dioxide emissions or long-lasting nuclear waste. But it’s proven extremely challenging to sustain a fusion reaction here on earth, and scientists have been trying for decades. In particular, it requires massive amounts of energy to generate fusion on reactions, and until this experiment, nobody had demonstrated the ability to get more energy out of the reaction than it takes to power it.

“Scientists have struggled to show that fusion can release more energy out than is put in since the 1950s,” plasma physicist Arthur Turrell told CNBC.

“During those decades, every time anyone has asked for funding for developing fusion power, the response has always been ‘first, you must show that it works in principle,'” said Turrell, who is also the author of The Star Builders. “That is, you must show that a fusion experiment can produce more energy than it uses. The researchers at Lawrence Livermore have done this for the first time ever.”

Fusion is already a hot space for climate and energy investors — so far, investors have poured almost $5 billion in investment into private fusion energy startups, according to the Fusion Industry Association, and more than half of that has been since since the second quarter of 2021.

“Everyone in the laser fusion (or inertial confinement fusion) community has been focused on getting to more energy out than in on a single experiment, because that is the key to showing the proof of principle and unlocking further investment and interest,” Turrell told CNBC.

Indeed, the private fusion industry is seeing this as a win.

“Now, the privately funded fusion industry will take the next steps, turning experimental results like this into a viable source of clean, safe energy,” Holland told CNBC. “In short, this will show the world that fusion is not science fiction: it will soon be a viable source of energy. Of course there are still many steps between these experimental results and fusion power plants, but this is an important milestone that brings us closer to the day when fusion will provide the world with clean, safe, and abundant energy.”

How nuclear power is changing

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Apple has its best week since July 2020 after White House visit

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Apple has its best week since July 2020 after White House visit

U.S. President Donald Trump and Apple CEO Tim Cook shake hands on the day they present Apple’s announcement of a $100 billion investment in U.S. manufacturing, in the Oval Office at the White House in Washington, D.C., U.S., August 6, 2025.

Jonathan Ernst | Reuters

Apple shares rose 13% this week, its largest weekly gain in more than five years, after CEO Tim Cook appeared with President Donald Trump in the White House on Wednesday.

Shares of the iPhone maker rose 4% to close at $229.35 per share on Friday for the company’s largest weekly gain since July 2020. The week’s move added over $400 billion to Apple’s market cap, which now sits at $3.4 trillion.

Apple is the third-most valuable company, behind Nvidia and Microsoft and ahead of Alphabet and Amazon.

At the White House on Wednesday, Cook appeared with Trump to announce Apple’s plans to spend $100 billion on American companies and American parts over the next four years.

Apple’s plans to buy more American chips pleased Trump, who said during the public meeting that because the company was building in the U.S., it would be exempt from future tariffs that could double the price of imported chips.

Investors had worried that some of Trump’s tariffs could substantially hurt Apple’s profitability. Apple warned in July that it expected over $1 billion in tariff costs in the current quarter, assuming no changes.

“Apple and Tim Cook delivered a masterclass in managing uncertainty after months and months of overhang relative to the potential challenges the company could face from tariffs,” JP Morgan analyst Samik Chatterjee wrote on Wednesday. He has an overweight rating on Apple’s stock.

Cook’s successful White House meeting also comes two weeks after Apple reported June quarter earnings in which overall revenue jumped 10% and iPhone sales grew by 13%.

WATCH: Santoli’s Last Word: Apple helps drive S&P higher

Santoli's Last Word: Apple helps drive S&P higher

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Tesla Robotaxi scores permit to run ride-hailing service in Texas

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Tesla Robotaxi scores permit to run ride-hailing service in Texas

In an aerial view, the Tesla headquarters is seen in Austin, Texas, on July 24, 2025.

Brandon Bell | Getty Images

Tesla has been granted a permit to run a ride-hailing business in Texas, allowing the electric vehicle maker to compete against companies including Uber and Lyft.

Tesla Robotaxi LLC is licensed to operate a “transportation network company” until August 6, 2026, according to a listing on the website of the Texas Department of Licensing and Regulation, or TDLR. The permit was issued this week.

Elon Musk’s EV company has been running a limited ride-hailing service for invited riders in Austin since late June. The select few passengers have mostly been social media influencers and analysts, including many who generate income by posting Tesla fan content on platforms like X and YouTube.

The Austin fleet consists of Model Y vehicles equipped with Tesla’s latest partially automated driving systems. The company has been operating the cars with a valet, or human safety supervisor in the front passenger seat tasked with intervening if there are issues with the ride. The vehicles are also remotely supervised by employees in an operations center.

Musk, who has characterized himself as “pathologically optimistic,” said on Tesla’s earnings call last month that he believes Tesla could serve half of the U.S. population by the end of 2025 with autonomous ride-hailing services.

The Texas permit is the first to enable Tesla to run a “transportation network company.” TDLR said Friday that this kind of permit lets Tesla operate a ride-hailing business anywhere in the state, including with “automated motor vehicles,” and doesn’t require Tesla to keep a human safety driver or valet on board.

Tesla didn’t immediately respond to a request for comment.

As CNBC previously reported, Tesla robotaxis were captured on camera disobeying traffic rules in and around Austin after the company started its pilot program. None of the known incidents have been reported as causing injury or serious property damage, though they have drawn federal scrutiny.

Elon Musk confirms plan for Tesla robotaxis in Austin, Texas next month

In one incident, Tesla content creator Joe Tegtmeyer reported that his robotaxi failed to stop for a train crossing signal and lowering gate-arm, requiring a Tesla employee on board to intervene. The National Highway Traffic Safety Administration has discussed this incident with Tesla, a spokesperson for the regulator told CNBC by email.

Texas has historically been more permissive of autonomous vehicle testing and operations on public roads than have other states.

A new law signed by Texas Republican Gov. Greg Abbott goes into effect this year that will require AV makers to get approval from the state before starting driverless operations. The new law also gives the Texas Department of Motor Vehicles the authority to revoke permits if AV companies and their cars aren’t complying with safety standards.

Tesla’s AV efforts have faced a number of challenges across the country, including federal probes, product liability lawsuits and recalls following injurious or damaging collisions that occurred while drivers were using the company’s Autopilot and FSD (Full Self-Driving) systems.

A jury in a federal court in Miami last week determined that Tesla should hold 33% of the liability for a fatal Autopilot-involved collision.

And the California DMV has sued Tesla, accusing it of false advertising around its driver assistance systems. Tesla owners manuals say the Autopilot and FSD features in their cars are “hands on” systems that require a driver ready to steer or brake at any time. But Tesla and Musk have shared statements through the years saying that a Tesla can “drive itself.”

Since 2016, Musk has been promising that Tesla would soon be able to turn all of its existing EVs into fully autonomous vehicles with a simple, over-the-air software update. In 2019, he said the company would put 1 million robotaxis on the road by 2020, a claim that helped him raise $2 billion at the time from institutional investors.

Those promises never materialized and, in the robotaxi market, Tesla lags way behind competitors like Alphabet’s Waymo in the U.S. and Baidu’s Apollo Go in China.

Tesla shares are down 18% this year, by far the worst performance among tech’s megacaps.

WATCH: What we saw at Tesla’s robotaxi launch in Texas

We went to Texas for Tesla's robotaxi launch. Here's what we saw

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Trade Desk tanks almost 40% on CFO departure, tariff concerns and competition from Amazon

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Trade Desk tanks almost 40% on CFO departure, tariff concerns and competition from Amazon

Jeff Green, CEO of The Trade Desk.

Scott Mlyn | CNBC

Shares of The Trade Desk plummeted almost 40% on Friday and headed for their worst day on record after the ad-tech company announced the departure of its CFO and analysts expressed concerns about rising competition from Amazon.

The Trade Desk, which went public in 2016, suffered its steepest prior drop in February, when the shares fell 33% on a revenue miss. In its second-quarter earnings report late Thursday, the company beat expectations on earnings and revenue, but the results failed to impress investors.

The Trade Desk, which specializes in providing technology to companies that want to target users across the web, said finance chief Laura Schenkein is leaving the job and being replaced by Alex Kayyal, who has been working as a partner at Lightspeed Ventures.

While some analysts were uneasy about the sudden change in the top finance role, the bigger concern is Amazon’s growing role in the online ad market, as well as the potential impact of President Donald Trump’s tariffs on ad spending.

Amazon has emerged as a significant player in the digital advertising market in recent years, and is now third behind Google and Meta. Last week, Amazon reported a 23% increase in ad revenue for the second quarter to $15.7 billion, which beat estimates.

Read more CNBC Amazon coverage

Amazon’s ad business has largely been tied to its own platforms, with brands paying up so they can get discovered on the sprawling marketplace. However, Amazon’s demand-side platform (DSP), which allows brands to programmatically place ads across a wider swath of internet properties, is gaining more resonance in the market.

“Amazon is now unlocking access to traditionally exclusive ‘premium’ ad inventory across the open internet, validating the strength of its DSP and suggesting The Trade Desk’s value proposition could erode over time,” Wedbush analysts wrote on Friday.

The Wedbush analysts lowered their rating on The Trade Desk to the equivalent of hold from buy, and cited Amazon’s recent ad integration with Disney as a sign of the company’s aggressiveness.

Executives at The Trade Desk were asked about Amazon on the call, and responded by suggesting that the companies don’t really compete, emphasizing that Amazon is conflicted because it will always prioritize its own properties.

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“A scaled independent DSP like The Trade Desk becomes essential as we help advertisers buy across everything and that we have to do that without conflict or compromise,” CEO Jeff Green said on the call. “It is my understanding that Amazon nearly doubled the supply of Prime Video inventory in the recent months. That creates a number of conflicts.”

For the second quarter, The Trade Desk reported a 19% increase in year-over-year revenue to $694 million, topping the $685 million estimate, according to analysts polled by LSEG. Adjusted earnings per share of 41 cents beat estimates by a penny.

Looking to the third quarter, the Trump administration’s tariffs were also a theme, as the company forecast revenue of at least $717 million, representing growth of 14% at minimum.

“From a macro standpoint, some of the world’s largest brands are absolutely facing pressure and some amount of uncertainty,” Green said. “Some have to respond more than others to tariffs. Many are managing inflation worries and the related pricing that comes with that.”  

With Friday’s slump, The Trade Desk shares are now down 53% for the year, while the S&P 500 is up about 9%. The Trade Desk was added to the S&P 500 in June.

WATCH: Trade Desk shares sink

Trade Desk shares sink on tariff warning

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