Overview
- Fermi announced a binding 15-year turnkey lease with AI cloud provider TensorWave for an initial 222 MW at Project Matador, a deal the company says represents roughly $6.5 billion of revenue over the contract life and includes two expansion options that could triple TensorWave’s footprint.
- The agreement, combined with more than $431 million raised through convertible notes and a reported $91.7 million in cash at quarter end, has driven strong investor reaction with the stock up about 23% for the week.
- Infrastructure progress includes three Siemens SGT6-5000F turbines landed at the Port of Houston (bringing landed assets to 1.5 GW) and an alliance with Hillcore Energy to add about 2.6 GW through a build‑own‑operate‑transfer plan, which together target roughly 4.8 GW of on-site generation within about 30 months.
- Fermi reported a Q2 net loss of $25.8 million, beating consensus, and appointed board director Lee McIntire as CEO as management frames these moves as delivery on a prior 90-day plan.
- Material risks remain: the TensorWave phases and the broader multi‑GW buildout are conditioned on customary guaranties, secured financing, permitting and successful construction, and the company is still pre-revenue with substantial debt on its balance sheet.