analysis
Trump’s company is entering the nuclear energy business, potentially increasing his wealth by $500 million – and further blurring the lines between office and personal interests.
Critics frequently accuse Donald Trump of conflating his financial interests as a businessman with his duties as US President. His latest venture appears to reinforce those concerns.
Nuclear Energy for Artificial Intelligence
Trump Media and Technology Group (TMTG) announced a more than $6 billion merger with energy company TAE Technologies on Thursday – one of dozens of companies worldwide pursuing nuclear fusion technology for power generation.
Founded in 1998, TAE is, according to the Wall Street Journal, one of the oldest privately held companies in the world specializing in nuclear fusion. TAE is backed by Google and energy giant Chevron and has raised over $1.3 billion in private capital, including from Goldman Sachs.
TMTG and TAE have ambitious plans, aiming to begin construction of the “world’s first industrial-scale fusion power plant” as early as next year. TMTG’s Devin Nunes anticipates lowering electricity prices in the US and better meeting the energy demands of Artificial Intelligence (AI).
Nuclear fission or nuclear fusion?
Nuclear fission and nuclear fusion are two different ways of generating energy from atomic nuclei: In nuclear fission, heavy atomic nuclei, such as uranium, are split and release energy. This technology is used today in nuclear power plants, but produces long-lived radioactive waste.
In nuclear fusion, light atomic nuclei, such as hydrogen, fuse together. This process releases even more energy, produces significantly less long-lived radioactive waste, and is considered very safe. However, the technology is not yet commercially viable.
Massive Stock Reaction to Trump’s Deal
The TMTG stock made a huge leap upward on the Nasdaq following the announcement – ending the day up 42 percent at $14.86. According to Forbes, Donald Trump’s net worth increased by more than $500 million overnight – he is now worth $6.8 billion.
Even more gains could be on the way today, as TMTG stock continues to rise in pre-market US trading. The shares had been under pressure in recent weeks, having lost more than 40 percent since October.
Who Controls Trump Media?
Trump founded TMTG in February 2021 after being banned from Twitter following the storming of the US Capitol on January 6, 2021. The core project of TMTG has been the social media app “Truth Social,” the US President’s online mouthpiece.
Unlike his predecessors, Trump – after being re-elected to the White House – did not transfer his assets into an independent trust, a “blind trust.” Instead, his son, Donald Trump Jr., manages the father’s assets. However, Donald Trump remains the sole giver and beneficiary – and can continue to receive income from his businesses. A clear separation between private business and public office looks different.
What is a Blind Trust?
A “Qualified Blind Trust,” as required by the Ethics in Government Act of 1978, is a trust in which the owner (“Trustor”) has no control, knowledge, or influence over the administration and selection of individual assets. He or she only receives a quarterly report on changes in value, without details of transactions or holdings.
For example, Jimmy Carter transferred his peanut farm to a “Blind Trust.” Lyndon B. Johnson, Ronald Reagan, Bill Clinton, George Bush, and his son George W. Bush also used Blind Trusts during their presidencies.
Trump Champions AI
And with this deal with TAE, Trump could also be mixing his financial interests with his office as US President. As US President, Trump is aggressively pursuing Artificial Intelligence – and potentially driving up energy consumption in his own country.
As recently as November, the Republican launched the “Genesis Mission” AI initiative. On Thursday, the US government announced that it had secured the support of technology companies such as Microsoft, Google, and Nvidia.
How Trump Makes Himself Vulnerable
The goal of “Genesis Mission” is to accelerate scientific research using Artificial Intelligence (AI) – and to strengthen the energy supply and national security of the US. Trump has made winning the AI race against China a priority.
Is Trump abusing his office in an unprecedented way to enrich himself personally, as his critics allege? With his latest nuclear energy deal, his AI initiative “Genesis Mission,” and his simultaneous waiver of a “Blind Trust,” Trump is making himself vulnerable.
