ENTERO THERAPEUTICS (ENTO) Acquires 100% of GRID AI, a Grid-Edge AI Platform Optimizing Next-Gen Power Demand

Core Insights - Entero Therapeutics, Inc. (ENTO) has acquired 100% of GRID AI Corp, positioning itself in the high-growth AI energy-infrastructure market amid increasing hyperscaler spending on data centers and energy storage solutions [2][3] Industry Overview - The AI-driven workloads are expected to significantly increase electricity consumption from data centers, with Goldman Sachs projecting a ~50% rise in global data-center power demand by 2027 and up to 165% by 2030 compared to 2023 [4] - Hyperscaler capital expenditures are surging, with estimates indicating annual spending in the hundreds of billions, and AI-related infrastructure investments projected to exceed $2.8 trillion by 2029 [5] Company Strategy - The acquisition of GRID AI allows ENTO to leverage GRID AI's Dynamic Load Shaping™ platform to manage localized loads from AI data centers while integrating renewable energy sources [6][12] - ENTO aims to scale solutions that address AI-driven power demand and improve grid reliability for both consumers and enterprises [3][12] Transaction Details - Under the acquisition agreement, former GRID AI shareholders will own approximately 82.5% of the fully diluted ENTO common stock, while existing ENTO shareholders will retain about 17.5% [8] - The transaction includes provisions for the former GRID AI shareholders to appoint directors to ENTO's board, enhancing governance and strategic alignment [8] Future Outlook - The acquisition positions ENTO within a growing market at the intersection of AI and energy, with strong tailwinds and opportunities for recurring revenue through GRID AI's SaaS-like model targeting utilities and retailers [12] - ENTO plans to operate GRID AI as a wholly owned subsidiary while continuing its existing biopharmaceutical operations, thus diversifying its portfolio into critical infrastructure software [10][12]