Fermi (FRMI) is giving investors a fresh reason to revisit its AI infrastructure story after signing a credit support agreement and strategic partnership with Advanced Micro Devices (AMD). The Oct. 13 agreement supports a lease covering 222 megawatts (MW) of gross power capacity for the first phase of Fermi’s Project Matador in Texas and establishes a framework for expanding the partnership to as much as 650 MW.
The deal is significant because AMD’s involvement could help Fermi overcome one of the biggest hurdles facing its ambitious artificial intelligence (AI) data center buildout: securing project financing. Project Matador is designed to provide large-scale, reliable power for AI computing, with Fermi targeting an eventual 17 gigawatts (GW) of capacity. The company has already invested more than $1.5 billion in the project, while its first 222-MW customer lease with TensorWave is expected to generate about $6.5 billion in revenue over 15 years, subject to closing conditions.
