Fermi, the Texas-based AI power startup, is undergoing a significant leadership overhaul as both its CEO and CFO depart amidst a steep decline in market value. The company, which initially saw a successful IPO last year despite generating no revenue, has seen its market cap plummet from nearly $20 billion in October to $3.4 billion as of April 20.
Leadership Changes and Strategic Reset
Founding CEO Toby Neugebauer and CFO Miles Everson have resigned from their executive roles but will remain on the company's board. Neugebauer, son of retired Texas congressman Randy Neugebauer, will retain his position as Fermi's largest shareholder. The firm has established an interim 'office of the CEO' led by Chief Operating Officer Jacobo Ortiz and board observer Anna Bofa, who brings industry experience from Google and Meta.
The leadership changes are part of Fermi's evolution as it progresses toward becoming a mature, established entity, positioned for long-term growth.
Market Struggles and Project Matador
Fermi's ambitious 'Project Matador' plans to construct an 11-gigawatt power grid in the Texas Panhandle, capable of supporting massive data center complexes. The project has faced setbacks, including the loss of its first hyperscaler customer and the cancellation of a $150 million deal by an unnamed tenant. The company’s headquarters will also relocate from Amarillo to Dallas as part of its strategic reset.
Analyst Stephen Gengaro of Stifel noted that Neugebauer’s departure could ease customer negotiations, potentially benefiting the company in the long term. 'Shares likely weaken on the headline, but this could be a plus for Fermi,' Gengaro stated.
Political and Legal Challenges
Neugebauer’s tenure was marred by public tensions, including a reported confrontation with U.S. Commerce Secretary Howard Lutnick over trade deals with South Korea. Fermi’s partnerships with South Korean firms Doosan Enerbility and Hyundai Engineering & Construction remain critical to its nuclear reactor development plans.
The company’s future now hinges on its ability to regain investor confidence and secure anchor tenants for its data center campus, which remains unfulfilled as of April.