Alphabet Inc.'s Google has provided novel support for a $3.2 billion debt transaction to finance the construction of a data center for TeraWulf Inc., a move that introduces a new financing mechanism for the rapidly expanding field of artificial intelligence infrastructure. The junk-bond sale for this deal saw exceptionally high demand, with orders reportedly exceeding $10 billion, indicating strong investor confidence in the 'Google backstop' provided for the financing. Under the terms of the deal, Google will step in to repay creditors if the AI cloud platform Fluidstack, the data center's lessee, defaults or declares bankruptcy after the facility becomes operational. As part of this arrangement, Google is also taking an approximate 14% pro forma equity stake in TeraWulf. The debt is being offered to investors with a yield of 7.75%.
Google Backs $3.2 Billion TeraWulf Data Center Deal to Fuel AI Infrastructure Growth
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