The leadership of AI power startup Fermi is embroiled in a heated dispute over the future of the company, following the abrupt firing of its former CEO and top shareholder Toby Neugebauer. Neugebauer, who remains a board member, has advocated for an immediate sale to maximize shareholder value, citing the company’s struggles to secure anchor tenants for its ambitious Project Matador. Fermi, however, has rejected this proposal, insisting that continuing its current business plan will better serve its long-term goals.

Leadership Shakeup

Neugebauer, who claims his family and former executive allies own approximately 40% of Fermi’s shares, was fired 'without cause' last week. His abrupt departure followed the resignation of former CFO Miles Everson on April 20, though both remain on the company’s seven-person board. Rick Perry, former Texas governor and U.S. energy secretary, also retains his board seat.

'Given recent changes in leadership, the company firmly believes a sale is not in the best interest of its continued momentum on Project Matador,' Fermi stated.

Project Matador’s Challenges

Fermi’s Project Matador aims to build the largest data center campus in the world in the Texas Panhandle, powered by a combination of nuclear, solar, and natural-gas-fired energy. Despite public support from the U.S. Department of Energy, the project has struggled to secure anchor tenants. In December, an unnamed tenant cancelled a $150 million deal, and no major agreements have been finalized since.

The company’s market capitalization has plummeted from nearly $20 billion at its public debut last year to less than $3.2 billion as of April 21. Fermi’s interim leadership, led by COO Jacobo Ortiz and Google/Meta veteran Anna Bofa, insists that strategic partnerships and continued execution of its business plan will yield better results than a sale.

Broader Implications

The internal conflict comes amid broader industry scrutiny and geopolitical tensions. Neugebauer reportedly clashed with U.S. Commerce Secretary Howard Lutnick over South Korea’s role in Fermi’s nuclear reactor development. Fermi’s partnerships with South Korean firms Doosan Enerbility and Hyundai Engineering & Construction remain intact, but the company’s path forward hinges on securing stable tenants and navigating ongoing leadership challenges.