Blackstone (BX) and Alphabet's (GOOG, GOOGL) cloud venture, Crux AI, is set to receive $22 billion in chip loans to develop processors for artificial intelligence products, Bloomberg reported late Wednesday.
Crux AI will use the financing to buy Google tensor processing units, people with knowledge of the matter told the news agency. The monetary value of TPUs and Crux AI's customer contracts will back the loan, the unnamed sources told the news outlet, with some banks providing a $1 billion revolving credit facility.
Goldman Sachs (GS), Barclays (BCS), Sumitomo Mitsui Banking, BNP Paribas and Bank of Nova Scotia (BNS) are among the lenders involved, and the group is seeking additional banks to spread exposure through a syndication, Bloomberg reported.
The debt could eventually be refinanced through longer-term investment-grade bonds, according to the report.
Blackstone, Alphabet, Goldman Sachs, Sumitomo Mitsui Banking, Barclays, BNP Paribas and Bank of Nova Scotia did not immediately respond to a request for comment from MT Newswires.
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