$22 Billion Chip Loan Secured for Google TPU Purchases in Crux AI Deal
Crux AI is securing a $22 billion chip loan from a group of 10 banks to purchase Google's Tensor Processing Units (TPUs), specialized processors for AI workloads. The financing includes Goldman Sachs, Sumitomo Mitsui Banking Corporation, Barclays, BNP Paribas, and Bank of Nova Scotia, with additional lenders being brought into the transaction through syndication.
The loan will be secured by both the value of the chips and Crux AI's customer contracts, effectively turning expensive AI computing hardware and its associated contracted revenue into collateral. A separate $1 billion revolving credit facility is also provided to Crux AI.
Crux AI emerged from a cloud infrastructure initiative announced by Google and Blackstone in May. The initial development plan calls for approximately 500 megawatts of data center capacity to come online in 2027, with additional expansion expected afterward. Blackstone committed an initial $5 billion of equity to the venture.