Blackstone-Alphabet Venture Secures $22B Loan for AI Chip Financing

A massive $22 billion loan is being provided by a consortium of major global financial institutions to support Crux AI, a newly launched artificial intelligence cloud venture formed by Blackstone Inc. (BX) and Alphabet Inc. (GOOG, GOOGL).

The loan will fund the purchase of Google-designed Tensor Processing Units (TPUs), which are secured directly by the underlying hardware, as well as Crux AI's customer agreements.

Backed by an initial $5 billion equity investment from Blackstone, Crux AI aims to provide cloud computing power directly to top AI labs. The venture plans to deploy 500 megawatts of computing capacity online by 2027 using Google’s proprietary TPUs.