AMD's AI chips to be used as debt collateral in $300 million loan, report says — Cloud startup to use chips in Ohio datacenter

Source: Tom’s Hardware

Image credit: Getty Images

AMD’s AI chips will be used as debt collateral in a deal to financially support a cloud startup buying the company’s processors, The Information reports. It’s the first known occurrence of the practice with AMD’s chips, creating a circular deal similar to those that Nvidia has been making to increase GPU sales.

The $300 million loan from Goldman Sachs to the cloud startup Crusoe will be used to purchase AMD’s AI chips (the reporting does not specify which chip, though it is likely a member of the Instinct MI450 series). Those chips will be deployed in a datacenter in Ohio.