A consortium of 10 major banks (including Goldman Sachs, Barclays, BNP Paribas, SMBC, and Scotiabank) is providing a $22 billion debt package for Crux AI — a new cloud venture backed by Blackstone and Alphabet (Google).
Key Takeaways:
- Capital & Resources: Crux AI secured $5 billion in initial equity from Blackstone, with Google contributing its custom Tensor Processing Units (TPUs), software, and services.
- Use of Proceeds: The $22 billion loan will fund Google TPU purchases, collateralized by chip assets and customer contracts.
- Scale & Timeline: The venture aims to bring its first 500 megawatts of computing capacity online in 2027.
- Debt Structure: Lenders are syndicating the debt to spread risk, with long-term refinancing planned via investment-grade bonds.
This massive deal highlights the exploding demand for specialized chips, data centers, and power to fuel next-generation AI workloads. 💡⚡