Feb 19 (Reuters) – Advanced Micro Devices will follow in the footsteps of rival AI giant Nvidia and provide cloud computing startup Crusoe with a $300 million loan guarantee for the purchase and deployment of its AI chips, The Information reported on Thursday.
The Information cited people familiar with the matter as saying that AMD would lease its own chips back to Crusoe if the startup was unable to secure customers such as artificial intelligence developers, supporting the deal.
Goldman’s loans will be backed by chips and related equipment, the report said. AMD’s support allowed Crusoe to lock in interest rates on the loans at around 6%, far lower than they would have otherwise been.
Crusoe is reportedly installing AMD chips in a data center in Ohio being built by Brookfield-backed Canadian developer 5C.
Crusoe declined to comment, while AMD did not immediately respond when contacted by Reuters.
Startup Crusoe is one of the companies building cloud computing services specifically for artificial intelligence companies. Chief Executive Chase Lochmiller told Reuters last year that the company planned to buy $400 million in new AMD chips.
Nvidia has struck a series of deals with artificial intelligence startups, including investments in some of its major customers, stoking concerns on Wall Street about an emerging AI bubble in so-called circular deals.
Launched in 2018 as a cryptocurrency business with a focus on building artificial intelligence infrastructure, Crusoe is one of the upcoming “new clouds” offering professional artificial intelligence cloud and data center services.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)