If the deal goes through, it would mark a milestone for Amazon’s semiconductor division. Nvidia still dominates the market, but developers like Meta are already exploring alternatives from Google and others.
Amazon has withdrawn from discussions to be the first tenant at Fermi Inc.’s sprawling AI data center
Source Cryptopolitan
Amazon has withdrawn from discussions to be the first tenant at Fermi Inc.’s sprawling AI data center site in West Texas. Earlier, when Fermi first announced that an investment-grade tenant had exited a deal that would have covered $150 million in construction expenses, its shares plunged 46% on December 12.
Now, Fermi CEO Toby Neugebauer has confirmed in a December 15 phone call with Business Insider that Amazon is the tenant that pulled back funding from the project.
Fermi’s Neugebauer asserts that talks between Amazon and the firm are still constructive
Fermi is hoping to create the world’s largest private grid to power a sprawling data center campus, with a $19 billion valuation as of October. The company first went public in September, raising more than $680 million at $21 a share. However, since the project’s announcement, concerns have arisen that the AI-led power buildout may be running ahead of demand, dragging on AI-linked stocks as questions mount over tenant security and the need for such large-scale facilities.
The company’s development, Project Matador, relies on a long-term, 99-year ground lease with the Texas Tech University System, subject to the firm finalizing a letter of intent with a tenant. The company thus called for a tenant to take the first gigawatt of capacity across 12 facilities at its 11-gigawatt campus in the Texas Panhandle.
Amazon had been working toward a deal that would have paid Fermi more than $20 billion over the next two decades. However, it withdrew its offer to provide the $150 million upfront payment required to initiate construction. Nonetheless, Neugebauer insists talks remain constructive and that the advance cancellation does not signal a breakdown.
He remarked, “It’s just a normal negotiation. Their issue was spending money after the exclusive period had ended.” He added, “It’s a big deal. Big deals take longer.”
After Fermi first announced that a tenant had withdrawn, analysts at Cantor Fitzgerald noted that they learned the anchor tenant had sought last-minute pricing adjustments that Fermi rejected.
Aside from Amazon, Palantir, which provides software to law enforcement and government clients, had also been eyeing the site. The software firm is still in talks with Fermi.
Amazon is in discussions to secure a $10 billion deal with OpenAI
Amazon is still in negotiations with other companies. According to reports, the firm is exploring a $10 billion deal with OpenAI that would utilize its AI chips. The deal would value OpenAI at over $500 billion.
The announcement comes shortly after OpenAI converted to a for-profit structure, giving it more leeway to negotiate with investors beyond Microsoft, which already owns 27% of the company.
Nevertheless, Amazon is looking to expand its AI investments, given it already has an $8 billion stake in Anthropic, an OpenAI rival. Earlier this month, the firm unveiled its Trainium chip that enhances its Amazon Web Services capabilities. According to Bloomberg, the company claims that Trainium offers cheaper and more efficient computing than Nvidia’s GPUs for the heavy math required by large models, and it’s attempting to win over teams that want to reduce their costs.
Amazon also released new Nova models, including Nova 2 Pro, that can process text, images, video, and speech to generate text.
Moreover, the company plans to add nearly 1.3 gigawatts of AI and supercomputing power across AWS Top Secret, Secret, and GovCloud (US) regions by constructing data centers with advanced compute and networking.
At the start of the year, Amazon CEO Andy Jassy had noted, “I think that both our business, our customers, and shareholders will be happy, medium to long-term, that we’re pursuing the capital opportunity and the business opportunity in AI. We also have capex that we’re spending this year in our stores business, really with an aim towards trying to continue to improve the delivery speed and our cost to serve.”
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The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000.
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Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal.
Bitcoin dips hard, finds a bid near $85,000（h3）
BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500.
The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet.
Structurally, BTC is still on the back foot:
It’s trading below $88,000, and
It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward.
Resistance is layered, and $89,000 is the problem area（h3）
If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession.
First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim.
A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle.
If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased.
If BTC fails to reclaim resistance, the downside path is clear（h3）
The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower.
Support levels line up like this:
Immediate support: $85,500
First major support: $85,000
Next support: $83,500
Then $82,500 in the near term
Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking.
Indicators: momentum still leans bearish（h3）
The intraday indicators aren’t offering much comfort yet:
Hourly MACD is losing pace in the bearish zone.
Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes.
So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.
Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average.
The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000.
Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.”
Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal.
Bitcoin dips hard, finds a bid near $85,000（h3）
BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500.
The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet.
Structurally, BTC is still on the back foot:
It’s trading below $88,000, and
It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward.
Resistance is layered, and $89,000 is the problem area（h3）
If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession.
First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim.
A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle.
If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased.
If BTC fails to reclaim resistance, the downside path is clear（h3）
The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower.
Support levels line up like this:
Immediate support: $85,500
First major support: $85,000
Next support: $83,500
Then $82,500 in the near term
Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking.
Indicators: momentum still leans bearish（h3）
The intraday indicators aren’t offering much comfort yet:
Hourly MACD is losing pace in the bearish zone.
Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes.
So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.
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