Crux AI secured a $22 billion loan to fund its new cloud operations. A consortium of 10 banks provided the financing for the venture. Blackstone and Alphabet launched the artificial intelligence startup last week. Goldman Sachs, Sumitomo Mitsui Banking Corp., Barclays, and BNP Paribas led the deal.
The venture will use the capital to purchase custom Google Tensor Processing Units. The loan is secured by the value of the processors and Crux AI’s customer contracts. Lenders provided an additional $1 billion revolving credit facility to the venture.
Crux AI aims to provide cloud computing power to compete with major industry players. The deal marks one of the largest debt arrangements ever for AI infrastructure. This investment highlights the massive capital required to meet soaring demand for computing power.