Fermi’s Seemingly Impending Downfall: Can the Project Be Revived or Sold? Exploits of the Filthy-Rich?

 

  

      I have written two posts on this blog about Fermi America’s ambitious projects to develop a massive AI data center campus near Amarillo, Texas, expected to include the deployment of 11 GW of power via natural gas, solar, nuclear, and batteries. The first post was about the announcement for the huge project in June 2025. The second post was about the possible hybrid cooling technology to be used at the site. Now, the project is facing some serious issues that may render it unable to be developed as planned.

     Fermi Inc., the startup co-founded by former Texas governor and Energy Secretary Rick Perry, went public in a transaction that allowed the company to raise nearly $746 million. By mid-April, things were looking different as Fermi’s stock price plunged about 84%, peaking at about $37 but trading at more than $5 a share this week. That is a huge loss. Energy writer Robert Bryce referred to Fermi’s fate as going from “sizzle to fizzle.” He explained that the losses reported by the company were not a good sign:

“On March 30, the company reported its 2025 financial results, and they were ugly. Fermi reported a full-year loss of $486.4 million, which included some $177.8 million in general and administrative expenses, $173.8 million in charitable expenses, $132.7 million in share-based compensation, and $111.6 million in losses related to financing,”

     Fermi is also being sued by at least one prospective tenant.

     In Mid-April, just six months or so after going public in the U.S. and London, the company announced that Toby Neugebauer, the co-founder and CEO, “departed his role as Chief Executive Officer.” The IPO valued Fermi at nearly $12.5 billion. However, since March 30, when the loss was announced, Fermi insiders have sold $68 million worth of the company’s stock. Bryce asks - If they are selling, why should others buy? He also notes that those stock sales raise other questions. He wonders whether they knew the CEO was leaving, which would not bode well for the stock price. In fact, the stock price dropped considerably after the CEO’s departure was announced. Since then, the company’s CFO, Miles Everson, resigned. He had also sold about $4 million in stock.

     In an April 24 Substack post, Bryce reports on the expensive private jetting of CEO Neugebauer, which he compares to Enron before that company imploded. On April 21, as Bryce reports:

“Neugebauer issued a press release in which he said the company’s board fired him “without cause.” The release said that Neugebauer “ultimately cares about making money for all shareholders more than finishing” what he started. Toward that end, he called on the Fermi board to “conduct an immediate process, led by an independent investment bank, for the sale of the Company to a third party.”

“Why would Neugebauer want a sale? I’m speculating here, but a quick sale might, repeat, might, allow Neugebauer and his family, who own about 40% of the company’s stock worth some $1.4 billion, to cash out without collapsing Fermi’s market capitalization. A few hours after Neugebauer’s press release was published, the company’s board issued its own press release confirming that Neugebauer had been fired. It rejected his call for a quick sale, saying it “firmly believes a sale is not in the best interest of its continued momentum on Project Matador.”

“While those events are noteworthy, the real bombshell dropped on Monday, when Fuzzy Panda Research, a short-seller, issued a savage takedown of Fermi that contains several allegations of misconduct by Neugebauer. The real blockbuster, though, is about Neugebauer and — you guessed it — a very expensive private jet.”

     He gave more details, but those were behind a paywall. In any case, it looks generally bad for the company and the project. While it may be revived, it seems unlikely that it will be developed fully and in a timely manner.

     According to a May 5 article in Barron’s, also behind a paywall, Fermi’s apparent “showdown with its former CEO took another twist after the ousted co-founder called for a shareholder meeting to decide whether to put the data-center developer up for sale.”

     Reuters reports that shareholders have rejected Neugebauer’s call for a special shareholders' meeting. The article summarizes recent events below.

      While I am not sure of all the details, this seems to be a case of high-flying, wealth-saturated, power-hungry individuals simply trying to get richer, and as Bryce suggests, reminiscent of Enron. 

     Electric power analyst Bill Peackock writes that if the project fails or is scaled down, it could affect power grid planning in Texas, where demand for power is very high, and the quest to ensure reliability in both winter and summer is often challenging. 

 

References:

 

Fermi Stock Slides as Ex-CEO Calls a Special Meeting. Will Shareholders Vote to Sell? Nate Wolf. Barron’s. May 05, 2026. Fermi Stock Slides as Ex-CEO Calls Special Meeting. Will Shareholders Vote to Sell? - Barron's

Are Fermi and Rick Perry in trouble in Amarillo? Oklahoma Energy Today. April 15, 2026. Are Fermi and Rick Perry in trouble in Amarillo? - Oklahoma Energy Today

Fermi Air: The high-flying hijinks of former Fermi CEO Toby Neugebauer. Robert Bryce. Substack, April 24, 2026. Fermi Air - Robert Bryce

Fermi Isn’t Faltering, It’s Imploding: Friday's departure of CEO Toby Neugebauer shows Fermi is in deep trouble. Robert Bryce. Substack. April 19, 2026. Fermi Isn’t Faltering, It’s Imploding - Robert Bryce

Fermi Troubles: A Warning for the Texas Grid. Bill Peacock. Master Resource. April 23, 2026. Fermi Troubles: A Warning for the Texas Grid - Master Resource

Fermi rejects ousted CEO's call for special shareholder meeting. Reuters. May 5, 2026. Fermi rejects ousted CEO's call for special shareholder meeting