Ten banks are participating in the financing, including Goldman Sachs, Sumitomo Mitsui Banking Corporation, Barclays, BNP Paribas and Bank of Nova Scotia, according to people familiar with the transaction.
Crux AI was established by Blackstone and Alphabet to provide computing infrastructure for AI companies, technology businesses and government customers. The venture plans to bring its first 500 megawatts of data-centre capacity online in 2027.
Blackstone has committed an initial $5 billion in equity to the project, while Alphabet is contributing its Tensor Processing Units, software and related services.
The latest debt financing highlights the growing dependence of the AI industry on large-scale physical infrastructure. Developing advanced AI systems requires not only software and specialised chips but also data centres, electricity generation, cooling systems and high-speed connectivity.
The capital requirements have encouraged technology companies and infrastructure investors to develop new financing structures designed to spread the cost of expansion.
In the Crux AI arrangement, the debt is expected to be supported by the value of Google's custom AI chips and customer contracts. The financing could subsequently be refinanced through the bond market, according to the report.
Banks are also seeking to manage their exposure by distributing portions of large loans among other lenders.
The scale of the financing reflects expectations that demand for AI computing capacity will remain substantial as businesses deploy increasingly sophisticated models and applications.
However, the investment cycle also creates financial risks. Data-centre construction requires significant upfront capital, while the commercial returns depend on sustained demand from technology companies and AI developers.
Electricity availability is another constraint. Data centres consume large amounts of power, making access to reliable generation and transmission infrastructure increasingly important to technology investment decisions.
For banks, the expansion of AI infrastructure is creating a new category of corporate lending linked to technology assets and long-term customer agreements.
For investors, the transaction provides another indication of the financial infrastructure developing around artificial intelligence.
As companies continue expanding AI capacity, demand for debt, equity and infrastructure capital is likely to remain closely linked to the industry's ability to translate computing investment into sustainable commercial revenue.
