Fermi $FRMI ( ▲ 3.77% ) plunged in early trading after revealing that the inaugural tenant for its Project Matador power grid has terminated a 150 million dollar agreement. The company disclosed the news in a Friday regulatory filing, sending shares sharply lower.
Fermi, cofounded by former Energy Secretary Rick Perry, is trying to build nuclear powered infrastructure to support the booming AI data center market. In September, the company announced a nonbinding letter of intent for a tenant to lease part of the Project Matador site. That agreement was formally ended on Thursday.
The company, which currently generates no revenue, said it is in discussions with other potential tenants and remains confident it can meet its planned power delivery schedule. Fermi said demand for behind the meter nuclear power from AI operators remains strong in both the near and long term.
Fermi went public in October and has struggled since. Shares are now down more than 70 percent from the IPO. In its first quarterly earnings report last month, the company posted losses that were steeper than expected.