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Banks provide $22 billion chip loan to Blackstone, Alphabet AI cloud venture, source says - Finance news and analysis from Global Banking & Finance Review
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Banks provide $22 billion chip loan to Blackstone, Alphabet AI cloud venture, source says

Published by Global Banking & Finance Review

Posted on September 16, 2026

2 min read

· Last updated: September 16, 2026

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Banks Fund $22 Billion Loan to Blackstone, Alphabet Crux AI Cloud Venture

By Harshita Mary Varghese and Arasu Kannagi Basil

Major Bank Loan Fuels Crux AI Cloud Initiative

Sept 16 (Reuters) - A group of 10 banks is providing a $22 billion chip loan to support Blackstone and Alphabet's new cloud venture Crux AI, a source familiar with the matter told Reuters on Wednesday.

Key Banks Involved in the Loan

The top banks include Goldman Sachs Group, Sumitomo Mitsui Banking Corp, Barclays, BNP Paribas SA and Bank of Nova Scotia, the source said, declining to be named as the discussions were still private.

AI Infrastructure Investment Trends

The deal comes as demand for computing power drives investment in data centers, specialized chips and electricity, requiring tech companies to secure billions of dollars to build out AI infrastructure.

Background of the Crux AI Venture

Google and Blackstone announced the venture in May, saying they would form a cloud business to meet the growing demand for AI computing services. The venture plans to bring its first 500 megawatts of capacity online in 2027.

Funding Structure and Technology Contributions

Crux AI, which formally launched last week, has secured an initial $5 billion equity investment from Blackstone, while Google will provide its custom Tensor Processing Units, software and services.

Target Customers and Platform Capabilities

The AI infrastructure company said the platform is designed for AI labs, technology companies, enterprises and governments that require dedicated computing capacity and infrastructure tailored to their needs.

Loan Utilization and Future Financing Plans

The debt will be used to purchase Google TPUs. It will be backed by the value of those chips and Crux AI's customer contracts, according to Bloomberg News, which first reported the news.

The banking group is in the process of bringing in more lenders to share the risk via syndication, according to the report, which also said the debt could be replaced later with long-term financing from institutional investors in the investment-grade bond market.

Responses from Involved Parties

BNP, Barclays and SMBC declined to comment, while Blackstone, Alphabet, Goldman Sachs and Bank of Nova Scotia did not immediately respond to Reuters requests for comment.

(Reporting by Harshita Mary Varghese and Arasu Kannagi Basil in Bengaluru; Editing by Arun Koyyur)

Key Takeaways

  • The $22 billion chip loan is among the largest AI infrastructure debt deals, intended to help Crux AI acquire Tensor Processing Units and backed by the value of the chips and customer contracts (investing.com).
  • Crux AI, launched in September 2026, was built on a $5 billion equity commitment from Blackstone and Google’s provision of TPUs, targeting 500 MW of capacity online by 2027 with multi‑gigawatt scaling ambitions (blackstone.com).
  • The syndicated loan may be syndicated further and eventually refinanced with long‑term investment‑grade bonds; Crux AI also faces execution risks, including site delays that prompted senior operational hires (investing.com).

References

Frequently Asked Questions

Which banks are providing the $22 billion loan for Crux AI?
Goldman Sachs, Sumitomo Mitsui Banking Corp, Barclays, BNP Paribas, and Bank of Nova Scotia are among the ten banks funding the $22 billion loan.
What is Crux AI and who are its main backers?
Crux AI is a new AI cloud venture backed by Blackstone and Alphabet (Google) to provide dedicated AI computing infrastructure.
How will the $22 billion loan be used by Crux AI?
The loan will be used to purchase Google TPUs and finance the development of AI infrastructure and data center capacity.
When is Crux AI's first 500MW of capacity expected to go online?
Crux AI plans to bring its first 500 megawatts of capacity online in 2027.
How is the loan being secured?
The loan is backed by the value of Google TPUs purchased and Crux AI's customer contracts.

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