ENTO Subsidiary Grid AI Announces Letter of Intent with First Hyperscaler AI Data-Center Customer
Rhea-AI Summary
Entero Therapeutics (NASDAQ:ENTO) announced that subsidiary Grid AI executed a Letter of Intent on November 19, 2025 to deploy its power-cluster optimization and orchestration platform with a stealth-mode hyperscaler AI data-center developer.
The LOI covers an initial Texas campus in the ERCOT market with expected Grid AI revenue beginning Q3 2026, roughly $8 million in 2027 and scaling to over $50 million in 2029. A definitive commercial agreement is expected in early Q1 2026. The multi-phase partnership will validate optimization, integrate behind-the-meter generation and storage, and deliver a unified technoeconomic model and dispatch/optimization engine for multi-hundred-megawatt AI campuses.
Positive
- First hyperscaler LOI marks strategic market entry
- Projected $8M revenue in 2027 from initial campus
- Projected > $50M revenue in 2029 from same customer
- Multi-campus pipeline provides visible scaling opportunity
Negative
- LOI is non‑binding; definitive contract expected in early Q1 2026
- Revenue timing depends on customer campus starting Q3 2026
- Customer remains stealth-mode, concentrating near-term exposure
News Market Reaction
On the day this news was published, ENTO declined 19.88%, reflecting a significant negative market reaction. Argus tracked a trough of -46.3% from its starting point during tracking. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $8M at that time. Trading volume was exceptionally heavy at 5.0x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
BOCA RATON, FLORIDA / ACCESS Newswire / November 19, 2025 / Entero Therapeutics, Inc. (NASDAQ:ENTO) ("Entero" or the "Company") today announced that its subsidiary Grid AI has executed a Letter of Intent (LOI) with a stealth-mode hyperscaler artificial intelligence (AI) data-center developer to deploy Grid AI's advanced power-cluster optimization and orchestration platform at the customer's first large-scale AI campus. The campus-expected to be among the more sophisticated AI-ready digital-infrastructure sites in development-will be located in the ERCOT market in Texas.
The LOI represents Grid AI's first hyperscaler agreement and marks a major milestone in Entero's strategy to build the leading global platform for AI-driven power orchestration across next-generation data-center campuses. The definitive commercial contract is expected to be executed in early Q1 2026.
The stealth mode customer's initial Texas campus is scheduled to begin generating revenue for Grid AI in Q3 2026 with approximately
"This LOI is a foundational moment for Grid AI," said Jason Sawyer, Entero Therapeutics' CEO. "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."
A Strategic Partnership to Deliver AI-Ready Intelligent Infrastructure
The LOI outlines a multi-phase strategic partnership to develop a best-in-class orchestration platform that unifies power-cluster design, coordinated dispatch, commercial optimization, and data analytics. The platform's architecture reflects key elements described in the LOI between the stealth mode customer and GridAI, including:
An initial deployment site in Texas, used to validate and scale up a world-class optimization engine designed specifically for large-scale digital-infrastructure assets.
Development of a scalable, high-performance infrastructure model integrating behind-the-meter generation, storage, and flexible load management to deliver cost-efficient, resilient, and grid-supportive power solutions.
A unified technoeconomic simulation model to quantify $/MWh, reliability, and PUE impacts across various asset configurations and commercial structures.
A next-generation dispatch-control and commercial-optimization engine capable of co-optimizing grid imports, battery assets, and gas-generation blocks, while coordinating financial and physical hedge positions.
A secure, cloud-based data-capture and reporting platform providing continuous operational visibility and market transparency for data-center operators.
"AI-centered digital infrastructure is growing and changing at an unprecedented rate, and the power-optimization stack needs to advance with it," said Marshall Chapin, CCO and Acting CEO of Grid AI. "This LOI signals that Grid AI is ready to support hyperscale operators with real-time orchestration tools capable of managing multi-hundred-megawatt power clusters with precision, economic intelligence, and reliability, ultimately delivering enormous value to our customers."
A Multi-Campus Global Opportunity
While the customer remains in stealth mode, the LOI notes that the initial Texas campus is the first of several planned facilities. The multi-campus roadmap creates strong visibility into future revenue streams and supports a scalable go-to-market model for Grid AI.
Beyond this initial customer, Grid AI is now positioned to pursue a rapidly expanding global opportunity as hyperscalers, cloud providers, and private AI-infrastructure developers race to build energy-dense campuses requiring:
Advanced power-cluster modeling
Dispatch and load-synchronization optimization
Market-bidding intelligence
Multi-asset orchestration (grid, batteries, engines, turbines)
Full-campus digital-twin environments
Investor & Media Contacts:
Entero Investor Relations
investors@enterothera.com
SOURCE: Entero Therapeutics, Inc.
View the original press release on ACCESS Newswire
FAQ
What did ENTO announce about Grid AI on November 19, 2025?
When will Grid AI start generating revenue from the ENTO LOI customer?
What revenue does ENTO expect from the Grid AI customer in 2027 and 2029?
Is the Grid AI agreement with the hyperscaler a binding contract?
Where will the initial Grid AI deployment be located for ENTO's customer?
What capabilities will Grid AI provide under the LOI announced by ENTO?
