AI start-up Poolside is in talks with cloud providers, including Google, in hopes of securing a new partner for its Texas data center project.
The new discussions come after Poolside's previous agreement with CoreWeave for the project fell apart.
CoreWeave and Poolside previously agreed to work together on the development of a 2GW data center in Texas in October 2025.
Dubbed Project Horizon, the data center was set for 568 acres of land and would have housed CoreWeave as the anchor tenant. The first phase aimed to offer 250MW of capacity under a 15-year lease, expanding to 500MW.
Shortly after, Nvidia was reported to be investing up to $1bn in Poolside, as part of a wider $2bn funding round.
However, according to a report from the Financial Times citing five people familiar with the matter, the partnership with CoreWeave began to fall apart late last year as Poolside was unable to stand up the first cluster of chips to CoreWeave's timeline.
A CoreWeave spokesperson said that the companies "ultimately chose to pursue different paths for their own strategic and timing reasons. Demand for AI infrastructure remains relentless . . . Poolside is an innovative company, and we remain open to working together.”
In addition, the FT states that the company was unsuccessful in its fundraising bid, and was unable to convince investors that it could train AI models to the same level of established competitors.
Thus, the AI start-up has turned to other cloud providers in the hopes of restarting its Texas project, including Google. Those conversations are said to be targeting getting commitments secured for the construction of up to 400MW of capacity. The FT states that a source familiar with Google's talks said that the company was no longer in discussion with Poolside.
Poolside, Google and Nvidia declined to comment to the FT.
The site in question sits on the Permian Basin, and could have a maximum capacity of 10GW of power. Poolside also aims to develop 2.5GW of solar and wind power on the campus.
Poolside was founded in 2023 by Eiso Kant and Jason Warner. The company develops software that it claims can automate coding with enough accuracy and security that it can be used by governments. They are also working on artificial general intelligence.
In 2024, it raised $500m at a $3bn valuation. The AI startup is a known customer of Fluidstack. It also previously leased a relatively small number of Nvidia H100 GPUs from Iris Energy.
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