AMD's AI chips to be used as debt collateral in $300 million loan, report says — Cloud startup to use chips in Ohio datacenter
Summary
AMD's chips are set to serve as collateral for a $300 million loan to cloud startup Crusoe, backed by financing from Goldman Sachs. This strategic move highlights the growing intersection of technology and finance in the startup ecosystem.
Key Insights
What is a circular AI chip deal?
A circular AI chip deal is a financial arrangement where a chipmaker like AMD or Nvidia provides backing or guarantees for loans to startups buying their chips, using the chips as collateral. This enables the startup to purchase the hardware while the chipmaker commits to renting unsold chips, boosting reported sales figures with reduced risk to the buyer.[1][3]
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What role does AMD play in the Crusoe loan deal?
AMD acts as a guarantor by agreeing to rent the AI chips from Crusoe if the startup cannot find other customers, securing the $300 million Goldman Sachs loan used to buy the chips for an Ohio datacenter. This is the first known instance of AMD chips being used as debt collateral.[1]
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