On Monday, the energy and infrastructure development company said that it has signed a 15-year turnkey agreement with AI cloud provider TensorWave.
- Fermi expects certain obligations under the lease with TensorWave to be guaranteed by one of the global leaders in AI.
- The TensorWave deal announcement comes shortly ahead of its second-quarter (Q2) results expected on Aug. 13 before the bell.
- According to Fiscal.ai, Street expectations peg the loss per share at $0.06, slightly above the previous quarter’s $0.05 loss per share.
Fermi Inc. (FRMI) finally has its first binding customer lease at the Project Matador campus in Texas, crossing a major hurdle in its push to turn the site into a large-scale AI power and data-center campus.
On Monday, the energy and infrastructure development company said that it has signed a 15-year turnkey agreement with AI cloud provider TensorWave.
The deal will cover an initial 222 megawatts (MW) of capacity at Project Matador, with expansion rights for two additional data centers that when exercised could take the partnership beyond 650 MW across three phases.
The partnership is expected to generate about $6.5 billion in contracted revenue over the initial term, with delivery expected to begin in the second half of 2027.
Fermi Mentions Potential ‘AI Leader’ Guarantor
While the first tenant is not a hyperscaler or an AI powerhouse, as investors may have hoped for, Fermi said in its release that it expects certain obligations under the lease with TensorWave to be guaranteed by one of the global leaders in AI.
While the guarantee is not a confirmation and neither has the potential guarantor been named, markets are widely speculating that it could be Advanced Micro Devices Inc. (AMD) since the company’s venture arm, AMD Ventures, is an investor in TensorWave.
Additionally, TensorWave has also chosen from inception to deploy only AMD accelerators to provide high-performance compute (HPC) for heavy generative AI, large-scale training, and inference workloads.
Darrick Horton, CEO and Co-Founder of TensorWave, said as part of the announcement: “Power is the critical constraint in AI infrastructure, and the vision and scope of what Fermi is building at Project Matador resonates with our own.”
He added, “Our customers need hundreds of thousands of next-generation AMD Instinct GPUs in aggregate, on timelines they can count on. Fermi has assembled the power, land, and permits to deliver at that pace, and we are proud to be the first customer at a campus built for the decades ahead.”
Meanwhile, Stocktwits users are also speculating an announcement about the guarantor alongside Fermi’s Q2 results later this week. One user said, “You’ll see another rocket when they disclose AMD is guaranteeing tensorwave’s lease obligations on Thursday.”
Another user added, “$FRMI not sure if yall realize that tensorwave is funded my AMD. Thats really a good first tenant.”
Project Matador Advances Are A Positive Signal
Fermi’s recent developments show that it is increasingly turning Project Matador from a proposed campus into a sustainable AI-power infrastructure.
In July, the company took delivery of three Siemens Energy SGT6-5000F natural-gas turbines at the Port of Houston, with the units capable of producing up to 780 MW combined in simple-cycle mode. The company said that the turbines marked a major milestone for Project Matador, expected to anchor the second phase of the power buildout for potentially the largest combined-cycle natural gas project in America. At the time, Fermi said that the turbines would move from Houston to the Panhandle.
Project Matador is considered Fermi’s crown jewel – a large-scale energy and AI campus in the Texas Panhandle spanning an area more than half the size of Manhattan. With over $1.5 billion already invested in the buildout, the project is designed to address AI infrastructure’s key bottleneck: access to reliable, large-scale power on timelines that match customer demand.
Fermi plans to deliver power through a privately built and operated, behind-the-meter grid, with the campus potentially scaling to approximately 17 GW, subject to binding customer agreements and capital deployment tied to commercial progress.
Fermi earlier secured approval for its first 6 GW Clean Air Permit and announced plans to file an additional 5 GW permit, bringing it closer to its long-term target of roughly 17 GW of total power capacity. That planned mix includes 11 GW of natural gas and 4.4 GW of nuclear power, alongside solar and battery storage. Fermi also highlighted that the campus has more than 2 GW of secured long-lead generation assets.
Fermi’s Q2 Results Will Be The Real Test
The TensorWave deal announcement comes shortly ahead of its second-quarter (Q2) results expected on Aug. 13 before the bell.
In the previous quarter, Fermi reported a $189 million Q1 net loss, or $0.30 per share, though the loss was narrower than the $0.50-per-share analysts’ estimates. The company ended the quarter with $243 million in cash and restricted cash.
Meanwhile, the company last reported $421 million of debt.
For the upcoming quarter, since Fermi is still a pre-revenue company, investors are likely to look for cues on liquidity, capital spending, financing capacity and Matador construction progress, alongside other details on the TensorWave deal.
According to Fiscal.ai, Wall Street expectations peg the loss per share at $0.06, slightly above the previous quarter’s $0.05 loss per share.
One retail user on Stocktwits said, “$FRMI $CRWV will be surpassed in 2 years. Possible hyperscaler announcement Thursday,” during its Q2 results.
FRMI Stock Performance In Recent Times
FRMI stock has swung wildly in 2026, with up and down swings week-on-week. Meanwhile, the company’s shares have experienced drawdowns from annual highs of about 50%.
However, at the time of writing, FRMI stock was up more than 20% in overnight trading, rising substantially on optimism from the deal announcement.
FRMI stock is down 33.33% so far in 2026, but Q2 results could likely change the trajectory of the company for the year if it can further demonstrate confidence in its execution strategy.
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