The U.S. government has long had an on-again, off-again relationship with the fusion power sector. As of last week, it’s definitely back on.

Helion and Commonwealth Fusion Systems (CFS) received awards totaling $260 million from the Department of Commerce under the CHIPS and Science Act, the 2022 law that funds domestic semiconductor development, to develop advanced semiconductors used to help power and control their reactors. Helion landed $175 million , while CFS reeled in $85 million .

But as with many recent government awards, these come with strings attached. Helion and CFS have agreed to give the government non-voting shares in return. With these awards, the fusion industry is finally getting the government’s attention, though maybe not the sort it envisioned.

In the past, government support for a startup meant non-dilutive capital, meaning money that doesn’t shrink existing investors’ ownership percentages, while giving the company a bigger war chest.…