Entero Therapeutics’ subsidiary Grid AI announced a Letter of Intent with a stealth‑mode hyperscaler artificial‑intelligence data‑center developer to deploy Grid AI’s power‑cluster optimization and orchestration platform at the developer’s first large‑scale AI campus in the ERCOT market of Texas. The agreement marks Grid AI’s first hyperscaler partnership and positions the company to provide a recurring revenue stream for Entero as it expands beyond its core biopharmaceutical focus.
Entero Therapeutics has faced significant financial strain, including a notice of default on a $7.4 million credit agreement, substantial net losses, and a very low cash balance. The company’s core business—developing gastrointestinal therapeutics—has not yet achieved commercial success, and recent headcount reductions and paused development activities underscore the urgency of diversifying revenue. The LOI therefore represents a strategic pivot aimed at creating a new, high‑growth income source to support the company’s liquidity.
Under the LOI, Grid AI will begin deploying its platform at the Texas campus in the third quarter of 2026, with initial revenue expected in that quarter. The agreement projects $8 million in revenue in 2027 and more than $50 million by 2029, reflecting the rapid growth of AI data‑center power demand. The platform synchronizes generation, storage, market participation, and compute load, addressing the critical need for efficient power management in large AI facilities.
Texas’s ERCOT market is emerging as a major hub for AI data centers, driven by low energy costs, favorable regulation, and independent grid management. Grid AI’s technology is tailored to the unique challenges of powering AI workloads, and the LOI places the company at the forefront of this expanding market. The partnership also signals that the developer is investing in advanced power‑management solutions to maintain grid stability as its AI campus scales.
CEO Jason Sawyer said, “This LOI is a foundational moment for Grid AI. The power requirements of hyperscale AI development are creating one of the most consequential infrastructure challenges of the next decade. Grid AI is positioned to become the premier orchestration layer that synchronizes generation, storage, market participation, and compute load at the largest and most complex AI campuses around the world.” The statement underscores the strategic importance of the deal and the potential for significant recurring revenue.
The LOI provides Entero with a tangible path to financial resilience. By securing a long‑term contract with a major AI developer, the company can generate predictable revenue that offsets the volatility of its biopharmaceutical pipeline. The partnership also diversifies Entero’s business model, reducing reliance on a single therapeutic area and positioning the company to capitalize on the explosive growth of AI infrastructure. If the projected revenue milestones are achieved, the deal could materially improve Entero’s cash position and support future investments in both its core and new businesses.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.