Business · Fortune Technology
Feud between AI power startup Fermi and its fired CEO and top shareholder heats up over proposed sale
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The new leadership of the AI power startup Fermi is feuding with its fired CEO and top shareholder over a potential sale of the company.
Key facts
- Fermi’s “Project Matador” plans are to build 11 gigawatts—enough to power 8 million homes—of nuclear, solar, and natural-gas fired power for a “HyperGrid” to support massive data center complexes
- The company’s market cap has plunged to less than $3.2 billion as of April 21
- The struggling Texas company, which went public last year at a nearly $20 billion market cap, aspires to build the largest data center campus in the world, called Project Matador, in the Texas
- In December, an unnamed Fermi tenant canceled a $150 million deal for the data center campus
Summary
The struggling Texas company, which went public last year at a nearly $20 billion market cap, aspires to build the largest data center campus in the world, called Project Matador, in the Texas Panhandle, but it has struggled to nail down anchor tenants. The company’s market cap has plunged to less than $3.2 billion as of April 21. The former CEO, Toby Neugebauer, who’s the top Fermi shareholder, said he was fired “without cause” last week and now supports an immediate process to sell the company to make “money for all shareholders.” Neugebauer said his family and former executive allies own about 40% of Fermi shares. Since Neugebauer’s and Everson’s departures were announced, Fermi said April 21 that its “2.0” version “has received significant and positive feedback from multiple potential tenants” and partners.