Company developing AI campus that will be powered by reactors
Caddis Capital, the second-largest shareholder in nuclear project developer Fermi Inc and owner of approximately 9.3% of the company’s outstanding common shares, has expressed its support of Fermi’s board of directors, the company’s management team and its long-term strategic plan.
The US investment firm backed Fermi’s recent decision to remove Toby Neugebauer as chief executive officer and the resignation of Miles Everson as chief financial officer.
Caddis Capital said in a statement it opposes Neugebauer’s efforts to pursue what it characterised as a hasty sale of the company.
“Caddis is confident in the company’s long-term prospects and believes its shares represent a compelling opportunity for investors,” the statement said.
Fermi’s recent market capitalisation has been materially disconnected from its intrinsic value and does not reflect the strength of its underlying assets, strategic positioning, and long-term growth profile, the statement added.
Caddis argues that a sale of the company at a depressed price would deprive shareholders of significant value.
Caddis said the board, including former Texas governor and US energy secretary Rick Perry, has the skills and expertise to oversee the implementation of Fermi’s strategy and ensure the highest level of governance.
Fermi stock has plunged 84% over the past year to $5.23, down from a 52-week high of $36.99.
Neugebauer, the company’s co-founder, suddenly departed the company last month along with Everson.
Fermi, which was co-founded by Perry, is developing an AI campus at Texas Tech University near Amarillo, Texas, which will eventually use nuclear reactors to power data centres.
The project, known as Project Matador, has struggled in recent months, including friction with a key customer, Bloomberg reported.
Company Bullish On Fermi 2.0
The company couched last month’s departures, along with other plans including a corporate headquarters in Dallas, as “Fermi 2.0” in an effort to signal to investors that it was still making progress on its project.
“Fermi Inc today announced a series of strategic and leadership initiatives under a new phase of the company’s evolution as it continues to progress along its path to becoming a mature, established entity, well positioned for long-term, sustainable growth,” a 20 April statement said.
“Following notable achievements for Project Matador across construction, buildout and regulatory milestones, these developments will position Fermi for its next chapter of innovation, operational excellence, and client-focused service.”
Fermi, which launched in June 2025, is planning a “hypergrid” campus – essentially a massive gas, nuclear and solar complex that could deliver its first power to onsite data centres by the end of 2026.
Its goal is to build a massive power-generation facility using Westinghouse AP1000 plants that bypasses the electric grid and directly delivers power to data centre customers.
