$22 Billion Chip Loan Backed by Blackstone and Alphabet to Support Crux AI
A consortium of ten banks is offering a $22 billion loan to support Crux AI, the new cloud venture jointly launched by Blackstone Inc. and Alphabet Inc. The funds will be used primarily for purchasing tensor processing units (TPUs) developed by Google. This financing structure is backed by both the value of these chips and customer contracts from Crux AI. Goldman Sachs Group Inc., Sumitomo Mitsui Banking Corp., Barclays Plc, BNP Paribas SA, and Bank of Nova Scotia are among those involved in the deal. The loan marks a growing trend where companies raise substantial debt to finance infrastructure for artificial intelligence development. While much capital has been directed toward building data centers, financing specifically for chips and servers is becoming more prevalent. In addition to this $22 billion facility, some banks have also arranged a separate $1 billion revolving credit line. Crux AI aims to provide computing power for major AI labs like OpenAI and Anthropic while competing with other cloud providers such as CoreWeave Inc. The venture plans to bring 500 megawatts of capacity online in 2027, supported by an initial $5 billion equity investment from Blackstone.
Tickers: $BARC $BNS $BX $GOOG $GOOGL $GS $SCCO
Topics: AI infrastructure chip financing cloud computing debt deals