Reports indicate that a consortium comprising 10 banks is set to extend a substantial $22 billion loan to Crux AI, a newly minted cloud computing venture jointly established by Blackstone and Alphabet. Sources with intimate knowledge of the deal have disclosed that the loan proceeds will be earmarked for the acquisition of Google’s proprietary Tensor Processing Unit (TPU) chips. The transaction will be secured by the chips themselves, as well as the customer contracts secured by Crux AI, serving as collateral.
Among the banks participating in this significant financing endeavor are industry giants such as Goldman Sachs, Sumitomo Mitsui Banking Corporation, Barclays, BNP Paribas, and Scotiabank, to name a few. Presently, the lead banks are actively engaging additional lending institutions through syndicated distribution, a strategic move aimed at mitigating risk and broadening the investor base.