Fermi, the AI power startup founded by former U.S. Energy Secretary Rick Perry, is grappling with a leadership crisis as both its CEO and CFO resign within days of each other. The company, which went public in October with a $16 billion market cap, has seen its valuation plummet to $3.4 billion amid a series of setbacks.
Leadership Shakeup
CEO Toby Neugebauer stepped down on April 17 but will remain on the board. Miles Everson, who served as CFO, resigned on April 19, citing no specific reason. Everson will also retain a board position with a term extending to 2028. Fermi has established an Interim Office of the CEO and initiated a formal search for a new CEO.
Market Woes
Fermi's IPO last year was followed by a significant decline in its stock value, exacerbated by the loss of a key hyperscaler customer. The company had planned to secure an anchor tenant by March, but negotiations remain unresolved. Analysts suggest Neugebauer's departure could be a positive for the company as it seeks to stabilize its leadership and market position.
"Everything from AI curiosity to proven AI expertise is in demand," said Shawn Cole, president of executive search firm Cowen Partners.
Under its "Fermi 2.0" strategy, the company aims to attract strategic investors, including sovereign funds and client-tenants. The board is now prioritizing candidates with strong investor relationships and AI expertise as it reshapes its leadership team.