Just several years after a boom and bust cycle of climate tech startups going public via SPAC, the backdoor deals are making a comeback.

Canadian fusion developer General Fusion on Thursday announced a $1 billion merger with a special purpose acquisition company, and a target to list on the Nasdaq by the middle of this year. That would make it the first fusion company to go public, as startups race to commercialize technologies that replicate the reaction powering the sun.

That would make it the first fusion company to go public, as startups race to commercialize technologies that replicate the reaction powering the sun.

The merger comes amid a shift in the overall SPAC market, which saw a boost in 2025 that analysts expect to continue this year. Investors spent about $30 billion on SPAC IPOs in 2025, the most since 2021’s boom, _Bloomberg_ reported. The deals have already attracted $2 billion this month. SPACs tend to target businesses working in artificial intelligence, along with data centers, renewables, mining, and rare earths.