Crux AI secured $22 billion in debt financing to purchase Google’s Tensor Processing Units (TPUs). Alphabet and Blackstone back the cloud venture.
The transaction establishes the first large-scale external customer for Google’s proprietary chips. Alphabet previously utilized these chips almost exclusively within its own internal ecosystem.
This move positions Google to compete with Nvidia in the AI infrastructure market. The financing structure relies on the value of the hardware and existing customer contracts.
The deal accelerates Google’s data-center capacity and solidifies its position in the AI market.