This Texas billionaire’s nuclear-powered data center company faces collapse

Texas billionaire Toby Neugebauer's second startup, Fermi America, is reportedly collapsing amid significant losses, investor discontent, and allegations of fraud. Fermi America, co-founded with former Governor Rick Perry, had aimed to capitalize on the booming data center market and small nuclear reactor technology with plans for a large-scale project near Amarillo, Texas. However, Neugebauer was fired as CEO, and the company's stock has plummeted by 80% without generating revenue or securing clients. The unraveling of Fermi America follows a similar pattern to Neugebauer's previous financial tech firm, GloriFi, which also failed in 2021. In GloriFi's bankruptcy proceedings, witnesses accused Neugebauer of inappropriate conduct and mismanagement. Many executives from GloriFi were subsequently brought over to Fermi America. Stock analysts are now debating Fermi America's viability, with a general consensus that its only chance for survival depends on Neugebauer's complete disengagement from the company. The Houston Chronicle columnist Chris Tomlinson highlighted these developments in his latest "Tomlinson's Take."