Banks Provide $22 Billion Chip Loan to Blackstone, Alphabet Cloud Venture, Bloomberg News Reports
The financing will help buy Google’s custom Tensor Processing Units and back 500 megawatts of data center capacity in 2027, the report said.
- On Wednesday, 10 banks agreed to provide a $22 billion loan to support Crux AI, a cloud venture between Blackstone and Alphabet, according to Bloomberg News.
- This financing will be used to purchase Google's custom Tensor Processing Units, with the debt backed by the value of those chips and Crux AI's customer contracts.
- Blackstone would invest an initial $5 billion in equity to help bring 500 megawatts of data center capacity online in 2027, with further expansion planned.
- Goldman Sachs, Sumitomo Mitsui Banking Corp, Barclays, BNP Paribas, and Bank of Nova Scotia are among the lenders, according to Bloomberg News.
- The venture, announced in May, arrives as major tech companies ramp up spending on power, data centers, and specialized chips to support growing demand for AI computing services.
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(Seoul = Yonhap News) Reporter Seol Won-tae = U.S. banks purchase $22 billion (approximately 30.4 trillion won) worth of chips from Crux AI, a neocloud joint venture between Blackstone and Alphabet...
Crux AI, the joint cloud company of Blackstone and Google, receives a billion loan from ten banks. Another mega loan for the expansion of AI infrastructure.
Banks provide $22 billion chip loan to Blackstone, Alphabet cloud ...
Banks Line Up $22 Billion Chip Loan Tied to Blackstone, Alphabet
A group of 10 banks is providing a $22 billion chip loan to support Blackstone Inc. and Alphabet Inc.’s new cloud venture Crux AI, the latest mega-debt deal in the race to finance the expensive processors crucial to artificial intelligence.
Blackstone-backed Crux AI secures $22bn chip financing from banks
Blackstone-backed AI infrastructure venture Crux AI is set to receive $22bn in chip financing from a consortium of 10 banks as investors and technology companies ramp up spending on the infrastructure required to support the growth of AI, according to a report by Bloomberg.
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