Poolside Seeks New Backers for Stalled Texas AI Data Center Megaproject April 2, 2026 AI infrastructure startup Poolside is actively negotiating with major cloud providers, including Google, to rescue its ambitious Texas data center project, following the collapse of a foundational partnership with GPU cloud giant CoreWeave and a related $1 billion investment from Nvidia. The search for new anchor tenants underscores the intense competition and high stakes in securing capacity for next-generation AI workloads, where timing and execution are critical. The venture, known as Project Horizon, was initially unveiled in October 2025 as a joint development between Poolside and CoreWeave. The plan involved constructing a massive data center campus on a 568-acre site in the Permian Basin region of Texas, with a potential ultimate power capacity of up to 10 gigawatts. CoreWeave was to be the anchor tenant, committing to a 15-year lease for an initial 250 megawatts of capacity, with an option to expand to 500MW. The site was also designed to support up to 2.5 gigawatts of on-site solar and wind power generation. However, the partnership unraveled late last year. According to a Financial Times report citing sources familiar with the matter, Poolside failed to deliver the first cluster of AI chips according to CoreWeave's required timeline. A CoreWeave spokesperson stated the companies "ultimately chose to pursue different paths for their own strategic and timing reasons," while adding that "demand for AI infrastructure remains relentless" and that they remain open to future collaboration with Poolside. Concurrently, a planned wider $2 billion funding round for Poolside, which was to include up to $1 billion from Nvidia, also fell apart. The FT reported that Poolside struggled to convince investors it could train AI models competitively against established players. Now, Poolside is in discussions with other providers, aiming to secure commitments for building up to 400MW of capacity. However, the path forward remains uncertain; one source told the FT that Google is no longer in talks with the startup. Poolside, Google, and Nvidia all declined to comment on the ongoing situation. Founded in 2023, Poolside develops AI-powered coding automation software and pursues artificial general intelligence research. It had previously raised $500 million at a $3 billion valuation in 2024. The fate of its Texas megaproject is being closely watched as a bellwether for newer AI firms attempting to vertically integrate into the capital-intensive infrastructure layer, where delays can quickly jeopardize financing and partnerships. Source: datacenterdynamics
AI Startup Poolside Scrambles for New Partners After Texas Megaproject Stalls
