Fermi CEO and CFO depart as shares fall 22%

The executive leadership of Fermi, a U.S. firm developing nuclear-powered artificial intelligence infrastructure, has undergone a sudden and complete transition. Co-founder and Chief Executive Officer Toby Neugebauer and Chief Financial Officer Miles Everson have departed their respective executive roles at the company. The announcement of these sudden departures on Monday triggered an immediate reaction in the public markets, sending Fermi’s shares down 22% by the close of the day’s trading session. The double departure leaves the company without its top two executives as it attempts to execute its capital-intensive infrastructure plans.

In tandem with the executive departures, Fermi announced a significant restructuring of its board of directors to manage the transition. Toby Neugebauer has stepped down from his position as chairman of the board, though he will continue to serve as a board director. Marius Haas, who previously held the role of Lead Independent Board Director—a specific board role independent of company management—has been appointed as the new chairman. Concurrently, former CFO Miles Everson has been elected to the board of directors. Everson’s election was executed through the Melissa A. Neugebauer 2020 Trust, which exercised its director designation rights. In corporate governance, director designation rights represent the legal right to appoint or designate a member to the board of directors.

The leadership shakeup comes at a critical juncture for Fermi’s primary infrastructure initiative in Texas. Co-founded by former U.S. Energy Secretary Rick Perry, the company is developing an AI campus in Amarillo, Texas, which plans to eventually use nuclear reactors to power data centers. However, this campus, known as Project Matador, has struggled in recent months, including friction with a key customer, Bloomberg reported. In an effort to signal progress to investors despite these operational difficulties and executive exits, the company is rebranding its ongoing plans and corporate strategy as “Fermi 2.0.” This rebranding effort also includes plans to establish a corporate headquarters in Dallas, Texas, as the firm attempts to stabilize its development timeline and reassure its financial backers.

Why it matters

The sudden executive turnover and stock decline highlight instability at the AI nuclear power firm as it attempts to pivot its struggling Project Matador data center initiative under a new “Fermi 2.0” strategy.