In a surprising financial development, Trump Media & Technology Group (DJT), part of former President Donald Trump's business portfolio, has finalized a $6 billion merger with TAE Technologies, a company at the forefront of nuclear fusion technology and backed by Google investors. This deal brings the president into a unique position of simultaneously managing presidential responsibilities while maintaining a significant ownership stake in a sector heavily regulated and supported by the federal government.
Industry and ethics experts warn this scenario creates unmistakable conflicts of interest, as the federal entities regulating and potentially financing nuclear fusion efforts are under the aegis of the executive branch presided over by Trump himself. Nuclear fusion remains in the experimental stage and is not yet commercially viable, requiring substantial governmental funding in research grants, loans, and contracts to advance toward commercialization.
Richard Painter, who served as the chief ethics officer under President George W. Bush and is currently a law professor at the University of Minnesota, highlighted the unprecedented nature of this arrangement. In a recent interview, he noted that presidents throughout American history have traditionally divested business interests to avoid conflicts of duty, a practice President Trump has not followed. Painter emphasized that while other government officials would be legally required to recuse themselves from matters involving their financial interests, presidents are exempt from these criminal conflict of interest laws. Nonetheless, he expressed his personal belief that this exemption should not exist.
The market responded swiftly to the announcement of the deal, with Trump Media's share price leaping 42% on the day of the news, enhancing the value of Trump's trust-held shares by $500 million, pushing the stake worth to approximately $1.7 billion initially and surpassing $1.8 billion shortly thereafter. This rapid increase reflects Wall Street’s positive outlook on the potential advantages the merger may bring to TAE Technologies, especially in political support and domestic investment in nuclear fusion energy.
Veteran technology analyst Dan Ives from Wedbush Securities remarked that the partnership is likely to attract robust political backing from President Trump, injecting new momentum into the U.S. fusion energy industry. Such backing could solidify a focused domestic commitment to advancing nuclear fusion as a clean energy source over coming years.
Nuclear fusion aims to mimic the sun’s energetic process by fusing atomic nuclei to generate vast amounts of clean energy. Despite its promise as a near-limitless and environmentally responsible power source, the technology remains early-stage, with significant challenges before reaching commercial viability. Consequently, federal government involvement is anticipated to be critical, providing substantial financial support and policy guidance to sustain research and development efforts.
Concerns over fairness and public interest arise from the risk that TAE Technologies might gain an undue advantage through its connection to the presidency. Kathleen Clark, a government ethics scholar at Washington University in St. Louis, cautioned that such favoritism would undermine merit-based scientific evaluation and could result in the government selecting winners not by technological merit but by political connections, drawing an analogy to historical Soviet-era appointments based on ideology over achievement.
Representative Don Beyer, co-chair of the House Fusion Energy Caucus, expressed shock at the deal linking Trump Media with TAE. He supported governmental efforts advancing fusion energy and appreciated presidential support for the industry but warned against one company receiving disproportionate government favor. Beyer acknowledged there are over two dozen fusion companies in the U.S., some with more advanced programs than TAE. He noted that while accelerated industry progress would benefit society, channeling government resources primarily toward one politically connected enterprise would be detrimental to both the nation and humanity at large.
When questioned about potential ethical issues, White House Press Secretary Karoline Leavitt denied any conflicts of interest, accusing the media of fabricating concerns and claiming that neither President Trump nor his family has ever engaged in such conflicts. Neither the Department of Energy nor the Trump Organization provided comment on the matter.
Michl Binderbauer, CEO of TAE Technologies, explained that the decision to merge with Trump Media was driven by the need for capital investment vital to building a nuclear fusion power plant. He expressed confidence that his company would not seek or receive preferential treatment from the government despite its ties to President Trump.
After the 2024 election, Trump transferred his majority ownership in Trump Media to the Donald J. Trump Revocable Trust, administered by his elder son, Donald Trump Jr., who is also expected to join the board of the merged company. However, ethics experts criticize this move as ineffective in mitigating conflicts of interest. Kathleen Clark dismissed the trust arrangement as "utterly meaningless" from an ethical standpoint, and Richard Painter likened it to delegating property management without relinquishing true ownership and control.
Painter reiterated that the most straightforward way for President Trump to resolve any conflict is to divest entirely from his interests in nuclear fusion, social media, and cryptocurrency ventures. Until such action is taken, ethical concerns are likely to persist given the president’s overlapping financial stakes and government responsibilities.