It happened at a BBVA Bank location at Highway 6 and University Boulevard Friday morning.
The suspects used a chain connected to a pickup truck and wrapped it around the ATM in an effort to pull it from the drive thru, Sugar Land authorities said.
Officers chased a vehicle believed to be involved in the attempted smash-and-grab but lost sight of the vehicle during the pursuit. Police searched a nearby bayou for at least one person and called for K9 units to assist.
University Boulevard was closed in both directions in the area while authorities worked to find the suspect and recover the cash.
The ATM was pulled from its anchoring in the bank's drive thru, and the machine was badly damaged.
It wasn't immediately clear who authorities are looking for or which direction they fled.