A sudden leadership shake-up has unsettled investors at emerging AI-powered nuclear firm Fermi, following the departure of its co-founder and Chief Executive Officer, Toby Neugebauer, alongside Chief Financial Officer Miles Everson. The unexpected exits triggered a sharp market reaction, with company shares falling by 22% on Monday.

According to the company, Neugebauer has stepped down from his role as chairman but will remain on the board. In response, Lead Independent Director Marius Haas has assumed the position of chairman, signaling an attempt to stabilize governance amid the transition. Everson, meanwhile, has been appointed to the board through the exercise of director designation rights linked to a trust associated with Neugebauer.

Fermi, co-founded by former U.S. Energy Secretary Rick Perry, has been developing an ambitious AI-powered campus in Amarillo, Texas. The facility, known as Project Matador, aims to utilize nuclear reactors to support high-demand data centers. However, recent reports suggest the project has faced operational setbacks, including tensions with a key customer.

Despite the turbulence, the company has framed the executive departures as part of a broader restructuring initiative dubbed “Fermi 2.0.” This includes plans to establish a new corporate headquarters in Dallas, as leadership seeks to reassure stakeholders that long-term strategic goals remain intact.

Source: TechCrunch