Fermi CEO and CFO leave as Texas AI nuclear power project faces delays

In short: Fermi said its CEO and CFO have suddenly departed as it works on a Texas project to power AI data centers with nuclear reactors.

What happened

Fermi co-founder and CEO Toby Neugebauer and CFO Miles Everson have left the company, according to a Monday announcement. TechCrunch reported that Fermi’s shares fell 22% after the news.

Fermi said Neugebauer also stepped down as chairman, but will remain on the company’s board. Marius Haas, the lead independent director, has taken over as chairman.

The company also said Everson has been elected as a board director. This happened through “director designation rights,” which is a pre-set rule that lets certain shareholders choose a board member (similar to having a reserved seat at the table).

Fermi was co-founded by former U.S. Energy Secretary Rick Perry. The company is developing an “AI campus” in Amarillo, Texas, called Project Matador. The plan is for nuclear reactors to supply electricity to data centers, which are large buildings filled with computers that run online services.

Bloomberg previously reported that the project has struggled in recent months, including friction with a key customer. Fermi described the leadership changes and other plans, including a corporate headquarters in Dallas, as part of an update it called “Fermi 2.0.”

Why it matters

Data centers need huge amounts of power, and companies are looking for steady energy sources to run more AI software. When top leaders leave suddenly, it can be a sign that a project is hitting problems, and it can affect whether the company can raise money and keep customers confident.

Source: TechCrunch AI