Fermi Inc. Compares AI Development to Manhattan Project

Fermi Inc., a nuclear power-plant developer, has likened the current race for artificial intelligence (AI) development in the United States to the historic Manhattan Project, which produced the first atomic bomb during World War II. In a letter to shareholders released on Monday, the company emphasized the urgency of its mission, stating, “Make no mistake, America is at war,” as it reported its first quarterly earnings since going public six weeks ago.

The ambitious rhetoric from Fermi reflects the significant challenges of powering the rapidly growing data centers across the country. The company’s Matador project, located in the Texas Panhandle, plans to eventually incorporate four large nuclear reactors, although completion is not expected until the 2030s. In the interim, Fermi is focused on installing natural gas turbines at the site to support energy needs.

Fermi’s Vision and the AI Competition

Fermi’s shareholder letter also addressed the competitive landscape in AI technology, particularly highlighting the race between the United States and China. According to the company, the U.S. is currently lagging, with China advancing its own initiatives by developing 33 nuclear reactors while the U.S. has no commercial atomic projects under construction. The letter states, “We are humbled to partner with you on the Manhattan Project of our generation. Together, we are answering the call to defend our country and Western Civilization against the national security threat of our time.”

Timm Schneider, an energy analyst and founder of The Schneider Capital Group, remarked that the letter’s tone was more reminiscent of a dramatic film script than a typical mid-cap earnings update. He noted the vivid imagery it conjured, likening it to scenes from cinematic classics.

Fermi’s financial position is still developing. The company, which reported no revenue, posted a net loss of $353.2 million for the year ending September 30. Currently, it holds $183 million in cash and cash equivalents, while its market capitalization stands at approximately $15 billion.

As Fermi Inc. moves forward with its ambitious plans, the outcome of its projects and their contribution to the broader energy landscape will be closely monitored, particularly in the context of the ongoing technological competition between global powers.