Fermi (FRMI) Stock Surges 26% on OpenAI Project Matador Power Deal Speculation

Key Highlights

• Shares of Fermi (FRMI) surged over 26% following reports suggesting OpenAI may be assessing power capacity at the company’s Project Matador facility in Amarillo, Texas.
• JMP Citizens, an analyst firm, indicated that a significant lease agreement between Fermi and OpenAI could be in the works.
• Project Matador aims to provide roughly 1.1 GW of power capacity by late 2026, with expansion plans targeting 17 GW by 2038.
• Prior to this rally, FRMI shares had declined more than 15% in late May and early June amid concerns over infrastructure expenses and management transitions.
• The company recently arranged approximately $785 million in equipment financing, featuring a $500 million credit line from MUFG.

Shares of Fermi (FRMI) climbed more than 26% on Tuesday following reports indicating that OpenAI is potentially reviewing available power capacity at the company’s Project Matador facility located in Amarillo, Texas.

Fermi Inc. Common Stock, FRMI

By Wednesday, the stock maintained much of its momentum, trading approximately 22.6% higher.

The upward movement followed commentary from analyst firm JMP Citizens, which suggested that OpenAI is among multiple parties currently evaluating capacity at Project Matador, with the possibility of a substantial commercial agreement on the horizon.

According to JMP Citizens, this development boosts the likelihood of Fermi securing its inaugural signed lease at the facility—a critical achievement for the organization.

Project Matador represents a large-scale AI infrastructure site powered by natural gas. Fermi plans to bring approximately 1.1 GW of additional 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 facing extended timelines for connecting to traditional power grids.

Longer-term development plans envision the campus expanding to 17 GW by 2038, which would establish it among the largest dedicated AI power facilities under development.

Recent Stock Weakness

Prior to Tuesday’s surge, FRMI shares had fallen over 15% from late May through early June. The decline reflected investor concerns regarding substantial infrastructure expenditures and recent executive leadership adjustments.

The significant single-session rebound indicates market participants view the OpenAI speculation as a potentially transformative 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 observations rather than confirmed contracts.

Capital Structure Updates

Regarding financing, Fermi recently secured around $785 million in new equipment funding. The centerpiece is a $500 million credit arrangement with MUFG.

As of the first quarter of 2026, the company reported total cash and restricted cash of roughly $243 million.

This liquidity buffer is particularly important for a company in this phase of infrastructure buildout, where significant capital investments occur well before revenue generation begins.

Fermi specializes in delivering low-carbon electricity to AI and computationally intensive sectors. The company’s strategy centers on meeting the escalating demand for dedicated, expandable power from hyperscale operators and AI infrastructure providers.

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 position within the AI power sector.

As of Wednesday’s trading session, FRMI shares were up roughly 22.6% for the week.

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