Ousted CEO Toby Neugebauer Sues Fermi, Pushes July Shareholder Meeting After 75.4% Stock Collapse
Updated
Updated · Financial Times · Jun 23
Ousted CEO Toby Neugebauer Sues Fermi, Pushes July Shareholder Meeting After 75.4% Stock Collapse
2 articles · Updated · Financial Times · Jun 23
Summary
Neugebauer is suing Fermi over his April removal and pressing for a July shareholder meeting to sell the company or find a strategic partner, after a judge rejected Fermi’s bid to block his shareholder campaign.
Fermi says it fired him for threatening and bullying behavior that damaged ties with tenants, investors and partners; Neugebauer denies that and blames insider stock sales for weakening the company’s bargaining power.
75.4% is how far Fermi’s stock fell by year-end after a proposed $150 million investment collapsed, while the company still has not signed a major tenant for its Texas AI campus.
A 90-day internal deadline now hangs over Fermi, which halted construction until it lands a tenant, while a $500 million equipment loan could put nine Siemens gas turbines at risk if no 400MW deal is signed by November.
The fight has become a broader warning on pre-revenue AI infrastructure bets: Fermi raised nearly $700 million at a $15 billion IPO valuation, yet now faces lender deadlines, investor litigation and doubts over whether its 5,263-acre project can deliver.
A fired CEO, a boardroom war, and a stock in freefall. Who will win the battle for Fermi's future?
With its founder fired and a history of failure, is Fermi's massive AI data center project destined to collapse?
Fermi Inc. Boardroom War and Legal Turmoil Jeopardize $1.4 Billion Project Matador
Overview
Fermi Inc. is facing a high-stakes battle for control between its current board and former CEO, Toby Neugebauer, creating major uncertainty about the company’s future. While the stock price has climbed from the mid-$5s to above $7, showing some market confidence in ongoing strategies, this progress is overshadowed by the unresolved question of who will ultimately lead the company. Neugebauer’s push to regain control through a consent solicitation has intensified the conflict, making the outcome of this boardroom showdown crucial for Fermi’s direction and stability.