Fermi CEO and CFO abruptly exit AI nuclear power firm, shares plunge 22% amid Project Matador struggles

Sudden Departure of CEO and CFO Triggers Stock Slump

Fermi co-founder and CEO Toby Neugebauer and CFO Miles Everson have suddenly departed the AI nuclear power developer, triggering a 22% stock slump on Monday 1

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. The abrupt executive exit at the company, which was co-founded by former U.S. Energy Secretary Rick Perry, marks a dramatic shift in corporate leadership changes as Fermi attempts to develop one of the most ambitious projects in the AI data centers sector. Neugebauer stepped down as chairman but remains on the board of directors, while Everson resigned from his CFO position to take a board seat 2

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. Lead Independent Board Director Marius Haas has stepped into the chairman role as the company searches for permanent replacements.

Project Matador Faces Anchor Tenant Challenges

The AI nuclear power developer has struggled to secure critical infrastructure and customers for Project Matador, its massive data center campus in Amarillo, Texas. The 17-gigawatt facility is designed to integrate four Westinghouse nuclear reactors alongside solar arrays and natural gas turbines for powering AI with nuclear reactors 2

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. Despite reportedly finding an anchor tenant in November, Fermi stated during its March earnings call that it had not yet secured a renter for any of its planned buildout 2

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. The 5,263-acre site, owned by the Texas Tech University System, sits beside the Panhandle-Hugoton Gas Field and could potentially expand to 17 gigawatts across 7,200 acres 2

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Analysts See Potential Upside in Management Overhaul

Stifel analysts who participated in a weekend call with Fermi's new leadership indicated that the CEO departure could actually improve customer negotiations. "There was friction between customers and Mr. Neugebauer, and negotiations could be simpler going forward," according to their research note 3

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. The board had been considering the management overhaul for at least three months, according to Evercore ISI 3

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. Evercore analysts described the transition as "changing the 'tone at the top' but maintaining the same tenacity and vigor the industry has seen from an operational perspective" 3

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Fermi 2.0 Restructuring Initiative Unveiled

The company branded its corporate leadership changes as "Fermi 2.0," establishing an interim office of the CEO with co-presidents Jacobo Ortiz Blanes, the former COO, and Anna Bofa, a former board advisor with experience at Google, Dropbox, Pinterest, and Meta 2

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. Fermi is establishing a new corporate headquarters in Dallas and building out an office in Amarillo near the Project Matador site 1

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. The company has engaged executive search firm Heidrick & Struggles to find a permanent CEO, with a board committee of Haas, Lee McIntire, and Cordel Robbin-Coker overseeing the process 2

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Corporate Dispute Over Company Sale Emerges

Neugebauer, who was removed from his position on April 17 by the board of directors, has called for an immediate sale of Fermi to maximize shareholder value 4

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. The company firmly opposed this demand, stating that a sale is not in the best interest of Project Matador's momentum and long-term shareholder value creation 4

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. Fermi shares have tumbled 69% since the company's October IPO, trading at $4.1 billion market capitalization, with the stock down 84% over the past year 3

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. Despite the stock slump, Stifel and Texas Capital Securities have maintained Buy ratings on Fermi, with price targets of $29.00 and $22.00 respectively 4

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. The board stated it will review options including continued execution of its business plan for private electric grids for artificial intelligence, strategic investments from third parties, or joint ventures 4

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