Crux AI secures $22 billion chip-collateralized loan from 10-bank consortium

Crux AI, an AI cloud service joint venture between Blackstone (Blackstone) and Alphabet (Alphabet) launched last week, has secured a $22 billion loan collateralized by chips from a consortium of 10 banks. The funds will be used to purchase custom Google TPUs. Crux AI previously received a $5 billion equity investment from Blackstone and plans to bring its first 500-megawatt capacity online by 2027. Participating lenders include Goldman Sachs (Goldman Sachs), Sumitomo Mitsui Banking Corporation (Sumitomo Mitsui Banking Corporation), Barclays (Barclays), BNP Paribas (BNP Paribas), and Scotiabank (Scotiabank).