Alphabet's Crux AI Secures $22 Billion Loan for TPU-Powered Cloud Expansion

Alphabet's (GOOGL) stock has gained around 1% in premarket trading following news that Crux AI, a cloud venture backed by Alphabet and Blackstone, secured $22 billion in debt financing from a group of 10 banks. The loan will be used to purchase Google-developed Tensor Processing Units (TPUs), with the debt backed by the value of those chips and customer contracts.

The deal includes Goldman Sachs, Sumitomo Mitsui Banking Corp, Barclays, BNP Paribas, and Bank of Nova Scotia among the banks involved. Blackstone has committed $5 billion in equity, while Google is contributing its custom TPUs, software, and services to Crux AI.

The venture plans to bring its first 500 megawatts of data center capacity online in 2027, with expansion expected after that. For Alphabet, the project puts its TPUs at the center of an externally financed AI cloud platform, broadening their use beyond Google's own internal operations.