Fermi's unnamed hyperscaler customer has reportedly turned out to be Amazon, according to the Financial Times. The customer committed to an initial 600 MW at Project Matador in Texas, and Fermi shares jumped. The long-term lease is still not finalized.
The Financial Times identified Amazon as the customer behind Fermi's Project Matador deal on November 13. According to Crypto Briefing, Fermi had described the buyer a day earlier only as an "investment-grade hyperscaler".
That customer has committed to an initial 600 MW of power at the Texas campus, starting in 2027. Fermi shares (NASDAQ: FRMI) posted intraday gains reported at 20-26%.
Prepayment and construction money on the table
Fermi announced the agreements on November 12, 2026, alongside its third-quarter results. The arrangement includes a $200 million prepayment, due by November 13. It also covers $15 million for early construction work and $90 million for steel and building materials.
Initial power deliveries are targeted for late Q2 to early Q3 of 2027. The 600 MW is an initial commitment, and Fermi has floated campus projections of up to 2.2 GW, with ambitions of roughly 17 GW overall.
A company that needed good news
The announcement arrived alongside a loss. Fermi reported a Q3 net loss of $141.6 million and confirmed that its lease with AI cloud provider TensorWave was mutually terminated. That lease was originally meant to cover 222 MW.
Fermi also pushed its nuclear reactor timeline back further. Fermi went public in October 2025 at an estimated valuation of $15 billion. A prior deal with Amazon collapsed in December 2025.
Open questions remain
However, the formal long-term lease is still being negotiated, and Fermi has not publicly confirmed Amazon as the counterparty. Until a definitive lease is signed, the relationship rests on the prepayment and early construction agreements rather than a full multi-year contract.
Next, investors can track a signed lease, visible construction progress in Texas, and whether the late Q2 to early Q3 2027 delivery window holds.
Source: Crypto Briefing
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