Pentagon Negotiates $5 Billion Loan for AI Startup Fluidstack

The United States Department of Defense is negotiating a $5 billion loan to Fluidstack, an AI cloud-computing startup, to expand the domestic data-center supply chain and manufacturing of critical components. Administered through the Pentagon’s Office of Strategic Capital, the deal would represent the office's largest loan to date.

This initiative follows an executive order from President Donald Trump declaring a national emergency regarding the reliance of U.S. AI data centers on foreign-made electrical equipment. Fluidstack, which recently moved its headquarters to New York, is receiving advisory services for the loan application from Erebor Bank, a national bank founded by entrepreneur Palmer Luckey.

The proposed funding aligns with a broader policy shift to treat compute capacity as a strategic national asset. While the deal remains unfinalized, the Department of Defense has declined to comment on the specifics of the pending transaction.