Blackstone-backed AI infrastructure venture Crux AI is set to receive $22bn in chip financing from a consortium of 10 banks, according to Private Equity Wire, citing a report by Bloomberg.
The financing will support the purchase of Google’s custom Tensor Processing Units (TPUs), with the lending reportedly secured against the value of the chips as well as customer contracts held by Crux AI, according to Private Equity Wire.
Financing structure and lender group
The report cites an unnamed source familiar with the matter as saying that Goldman Sachs, Sumitomo Mitsui Banking Corporation, Barclays, BNP Paribas and Bank of Nova Scotia are among the lenders participating in the transaction, according to Private Equity Wire.
The banks are understood to be seeking additional lenders through a syndication process to distribute the exposure, Private Equity Wire reported.
Venture formation and contributions
Blackstone and Google parent Alphabet announced the creation of Crux AI in May, according to Private Equity Wire.
Blackstone is providing an initial $5bn equity investment in the venture, while Google is contributing its TPUs, software and services, according to Private Equity Wire.
Launch timing, capacity and target customers
Crux AI formally launched last week and plans to bring its first 500 megawatts of computing capacity online in 2027, Private Equity Wire reported.
The company is targeting AI laboratories, technology businesses, enterprises and government customers seeking dedicated computing infrastructure, according to Private Equity Wire.
Context
Bloomberg is a widely followed financial news publication that reports on markets, companies, and financing transactions worldwide.
Syndicated lending is a common approach for banks to share large exposures by distributing portions of a loan to additional lenders.
