://www.barrons.com/articles/fermi-ceo-exit-stock-price-dc5f7a7c
The CEO and CFO of Fermi, a Reit that was supposed to provide the infrastructure for data centers have both resigned. Barrons spins it as a good thing. Problem is, we are supposed to be constrained by the problem that this company solved, but they can’t get a tenant.
Now it could be that they solved the problem at too high a price, the CEO and CFO or incompetent or this is a canary in the coal mine and demand is just a pipe dream and the AI bubble is bursting today.
Don’t know which.
Cheers
Qazulight
9 Likes
Qazulight,
It looks like this is Fermi’s first AI datacenter. It’s also suppose to be the world’s largest. It looks like they ran into construction issues and the old CEO shortly before his firing in an interview said he was “naive” in the complexity of the project.
So it looks more like the hyper scalers are not willing to sign a lease with upfront payment to build it unless Fermi can prove they can build it.
Which is a bullish point to those investing in AI companies that have working AI datacenters. That it’s not an easy switch for competitors to just buy land and power to build a datacenter.
Drew,
Long IREN
21 Likes