Banks Provide $22 Billion Loan to Crux AI Venture

Crux AI, a cloud venture co-founded by Alphabet Inc. and Blackstone Group Inc., has secured a $22 billion loan from a consortium of 10 banks. The funding is designated for the purchase of Google custom Tensor Processing Units to address the rising demand for AI computing services.

The debt is secured by the value of the chips and the venture's existing customer contracts. This financing follows a partnership announced in May, which included an initial $5 billion equity investment from Blackstone. The venture aims to establish 500 megawatts of data center capacity by 2027.

Participating lenders in the loan include Goldman Sachs Group, Sumitomo Mitsui Banking Corp, Barclays, BNP Paribas SA, and Bank of Nova Scotia.