Semiconductor Giant AMD Partners With Fermi to Back Mass Scale AI Power Deal
Santa Clara, Tuesday, 13 October 2026.
On October 12, 2026, Fermi Inc. secured AMD’s credit support alongside a $6.5 billion deal with TensorWave, unlocking 222 megawatts of power for AI infrastructure in Texas.
Fermi Inc. Announces Strategic AMD Partnership and TensorWave Deal
Fermi Inc. (Nasdaq: FRMI), operating as Fermi America, announced on October 12, 2026, that it has executed a credit support agreement and strategic partnership with semiconductor maker Advanced Micro Devices (AMD) [1]. This collaboration enhances Fermi’s financing capabilities and infrastructure scale, underscoring growing commercial integration between hardware providers and next-generation compute operators [1]. Concurrently, Fermi secured a 15-year turnkey agreement with AI cloud provider TensorWave, marking the first customer lease for the Project Matador campus in Texas [2]. The deal covers an initial 222 MW of capacity with expansion rights for two additional data centers, potentially exceeding 650 MW total across three phases [2].
Strategic Partnership and Credit Support Framework
The collaboration with AMD formalizes a partnership framework for future expansion at Project Matador, targeting up to 650 MW of total gross power capacity [1]. AMD’s involvement addresses the critical demand for compute and the large-scale data center infrastructure needed to support AI innovation [1]. Prior to the official announcement, market speculation suggested AMD might guarantee lease obligations, given that AMD Ventures is a TensorWave investor and TensorWave exclusively utilizes AMD accelerators [2]. The confirmed agreement establishes a framework for phases two and three of the development, leveraging Fermi’s land, permits, and power equipment advantages [1].
Project Matador Infrastructure and Capacity Goals
Project Matador is an advanced energy and AI ecosystem in the Texas Panhandle with over $1.5 billion invested to date, utilizing a private, behind-the-meter grid [1]. The project aims to ramp to approximately 17 GW of capacity, contingent on securing binding customer agreements and matching capital deployment to commercial commitments [1]. The initial phase with TensorWave represents 34.154 percent of the potential 650 MW partnership capacity, with delivery expected to begin in the second half of 2027 [2]. The campus is designed to integrate a combined-cycle natural gas project, a clean nuclear power complex, utility grid power, solar power, and battery energy storage [1].
Market Reaction and Financial Outlook
Following the announcement, Fermi Inc. shares rose nearly 22%, with analysts at Mizuho reiterating an ‘Outperform’ rating and calling the deal a ‘long-awaited catalyst’ [3]. Investors are now focused on liquidity and capital spending ahead of Q2 results scheduled for October 15, 2026 [3]. Wall Street analysts are forecasting a loss of $0.06 per share on $5.99 million revenue for the upcoming report [3]. As of the article date, FRMI stock was down 10% year-to-date, though retail sentiment on Stocktwits was categorized as extremely bullish following the news [3].