AMD Guarantees $300M Crusoe Loan, Collateralized by Chips in Ohio Data Center
AMD has guaranteed a $300 million loan for cloud computing startup Crusoe, securing a 6% interest rate through collateralized chips and equipment. Crusoe is installing AMD processors in a new Ohio AI data center developed with 5C support.
1. Loan Guarantee for Crusoe
AMD has agreed to guarantee a $300 million loan for cloud computing startup Crusoe, backing the financing provided by Goldman Sachs. The guarantee positions AMD as a backstop lender, offering Crusoe favorable borrowing terms that it could not secure independently.
2. Collateral and Buyback Option
The loan is collateralized by AMD chips and associated equipment, and AMD has proposed a repurchase clause to buy back unsold inventory if Crusoe fails to attract AI developer customers. This structure supports Crusoe’s cash flow needs while mitigating AMD’s inventory risk.
3. Ohio Data Center Deployment
Crusoe is installing AMD processors in a new AI-focused data center in Ohio, built by Canadian developer 5C with backing from Brookfield. This facility marks Crusoe’s shift from cryptocurrency mining to specialized AI infrastructure, leveraging AMD’s latest chip designs.
4. Strategic AI Infrastructure Push
The loan guarantee follows AMD’s expanded partnership with Tata Consultancy Services on AI data center designs and its record Q4 revenue of $10.3 billion, driven by a 34% year-over-year gain in Data Center sales. These moves aim to enhance AMD’s competitiveness against Nvidia in the rapidly growing AI market.