Key Highlights
- Shares of Fermi (FRMI) surged more than 26% following reports suggesting OpenAI may be assessing power capacity at the company’s Project Matador AI infrastructure facility in Amarillo, Texas.
- JMP Citizens, an analyst firm, indicated the possibility of a significant commercial lease agreement materializing between OpenAI and Fermi.
- The Project Matador facility is expected to provide roughly 1.1 GW of power capacity by the close of 2026, with long-term expansion plans targeting 17 GW by 2038.
- Shares had declined over 15% during late May and early June amid concerns over substantial infrastructure expenditures and executive team transitions.
- The company recently obtained approximately $785 million in equipment financing, featuring a $500 million credit line from MUFG.
Shares of Fermi (FRMI) experienced a sharp rally exceeding 26% on Tuesday following emerging reports that OpenAI is potentially reviewing available power capacity at the company’s Project Matador facility located in Amarillo, Texas.
By Wednesday’s trading session, the stock maintained gains of approximately 22.6%, demonstrating sustained investor enthusiasm.
The rally was triggered after JMP Citizens, an analyst firm, suggested that OpenAI is among multiple parties currently evaluating capacity availability at Project Matador, with indications that a substantial commercial agreement could be imminent.
According to JMP Citizens’ communications with investors, these developments enhance the likelihood of Fermi securing its inaugural signed lease at the facility—a critical achievement for the company’s growth trajectory.
Project Matador represents a large-scale AI infrastructure campus powered by natural gas. Fermi aims to bring approximately 1.1 GW of fresh power capacity online by the conclusion of 2026.
The facility operates as a behind-the-meter power solution, making it particularly appealing to hyperscale operators experiencing difficulties with traditional public grid connections.
Long-term development plans envision the campus reaching a total capacity of 17 GW by 2038, establishing it among the largest dedicated power facilities for AI operations currently under development.
Recent Price Weakness Reversed
Prior to Tuesday’s substantial rally, FRMI shares had experienced a decline exceeding 15% throughout late May into early June. This downturn reflected investor concerns regarding significant infrastructure investment requirements and recent executive leadership adjustments.
The dramatic single-session recovery indicates market participants view the OpenAI speculation as a substantial positive development for Project Matador’s leasing prospects.
It’s important to note that no formal agreement has been announced. The stock movement stems from analyst analysis rather than confirmed contractual arrangements.
Capital Resources Secured
Regarding financial backing, Fermi has recently secured approximately $785 million in equipment financing arrangements. The primary component consists of a $500 million credit facility provided by MUFG.
As of the first quarter of 2026, the company reported total cash and restricted cash holdings of roughly $243 million.
This liquidity profile is particularly significant for a company in this phase of infrastructure construction, where capital requirements are concentrated in early stages well before revenue generation begins.
Fermi specializes in delivering low-carbon power solutions to artificial intelligence and computation-intensive sectors. The company’s strategic approach centers on addressing the expanding demand for dedicated, scalable power from hyperscale providers and AI infrastructure operators.
Should a lease agreement with OpenAI or another major client materialize, it would represent Project Matador’s first commercial contract and confirm the campus’s competitive positioning within the AI power infrastructure marketplace.
As of Wednesday’s close, FRMI shares had gained approximately 22.6% for the week.
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