Fermi Inc. Draws Manhattan Project Parallel in AI Race

Fermi Inc., a nuclear power plant developer, has likened the United States’ race to develop artificial intelligence (AI) and the necessary nuclear energy infrastructure to the historic Manhattan Project of World War II. In a letter to shareholders, the company described the current technological landscape as a critical conflict, stating, “Make no mistake, America is at war.” This assertion came as Fermi reported its first quarterly earnings since its initial public offering just six weeks prior.

The statement from Fermi, co-founded by former U.S. Energy Secretary Rick Perry, highlights both the ambitious goals of the company and the substantial challenge of powering the growing number of data centers planned throughout the U.S. The company is working on the Matador project in the Texas Panhandle, which is projected to eventually consist of four large nuclear reactors. However, these reactors are not expected to be operational until the 2030s, and Fermi is currently focused on installing natural gas turbines at the site.

Fermi’s letter also emphasized the competitive landscape between the United States and China in AI technology development. The company claims that the U.S. is falling behind, noting that China is actively constructing 33 nuclear reactors while the U.S. has no commercial atomic projects underway. “We are humbled to partner with you on the Manhattan Project of our generation,” the letter declared, framing the endeavor as essential to safeguarding national security and Western civilization.

The tone of the shareholder letter drew comparisons to dramatic narratives, with energy analyst Timm Schneider remarking that it resembled a script from a Francis Ford Coppola film rather than a standard earnings update. This theatricality underscores the urgency with which Fermi views its mission.

Financially, Fermi remains in a challenging position. The company reported a net loss of $353.2 million for the year ending on September 30, with cash and cash equivalents totaling $183 million. Despite these losses, Fermi has achieved a market capitalization of approximately $15 billion, reflecting investor interest in its long-term vision.

As Fermi continues to carve out its role in the nuclear energy and AI sectors, its ambitious plans and bold rhetoric will likely draw both scrutiny and support from various stakeholders in the energy and technology landscapes. The company’s efforts to align itself with historical narratives of national importance signal its determination to play a pivotal role in shaping the future of energy and technology in the United States.