TLDR
- Fermi (FRMI) jumped more than 26% after reports that OpenAI is likely evaluating capacity at its Project Matador AI power campus in Amarillo, Texas.
- Analyst firm JMP Citizens flagged the potential for a major commercial agreement between OpenAI and Fermi.
- Project Matador is on track to deliver approximately 1.1 GW of power by end of 2026, with plans to scale to 17 GW by 2038.
- The stock had fallen more than 15% in late May and early June due to heavy infrastructure spending and leadership changes.
- Fermi recently secured around $785 million in new equipment financing, including a $500 million facility from MUFG.
Fermi (FRMI) stock jumped more than 26% on Tuesday after reports that OpenAI is likely evaluating power capacity at the company’s Project Matador campus in Amarillo, Texas.
The stock was trading up around 22.6% as of Wednesday, holding onto most of those gains.
The move came after analyst firm JMP Citizens said OpenAI is likely among several counterparties assessing available capacity at Project Matador, and that a major commercial deal could be close.
JMP Citizens told investors the news increases the odds of Fermi landing its first signed lease at the campus, which would be a key milestone for the company.
Project Matador is a large-scale, natural gas-powered AI infrastructure campus. Fermi is targeting delivery of approximately 1.1 GW of new power capacity by the end of 2026.
The campus is designed to operate as a behind-the-meter power solution, which is attractive to hyperscalers that are facing delays connecting to the public grid.
The full buildout is planned to reach 17 GW by 2038, positioning it as one of the larger dedicated AI power sites in development.
Stock Had Been Under Pressure
Before Tuesday’s rally, FRMI had dropped more than 15% between late May and early June. That slide came as investors weighed heavy infrastructure costs and recent changes at the leadership level.
The sharp one-day recovery suggests the market sees the OpenAI report as a meaningful shift in the leasing outlook for Project Matador.
No deal has been officially confirmed. The move is based on analyst commentary, not a signed agreement.
Financing in Place
On the funding side, Fermi recently locked in roughly $785 million in new equipment financing. The anchor piece is a $500 million credit facility from MUFG.
As of Q1 2026, the company held total cash and restricted cash of approximately $243 million.
That liquidity position matters for a company at this stage of infrastructure development, where capital outlays are front-loaded well ahead of revenue.
Fermi focuses on supplying low-carbon power to AI and compute-heavy industries. The company’s business model is built around the growing demand for dedicated, scalable power from hyperscalers and AI infrastructure operators.
If a lease with OpenAI or another major tenant does get signed, it would mark the first commercial agreement for Project Matador and validate the campus’s positioning in the AI power market.
As of Wednesday, FRMI was up approximately 22.6% on the week.
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