Pentagon in Talks to Lend $5 Billion to AI Startup Fluidstack
Synopsis
The Pentagon considers a $5 billion loan to AI startup Fluidstack, aimed at strengthening domestic supply chains for critical data center components.
Key Highlights
- Pentagon in discussions to loan $5bn to AI cloud-computing startup Fluidstack.
- The funds would be drawn from the Pentagon’s Office of Strategic Capital.
- The loan would support the U.S. data center supply chain, not a new AI facility.
- The Office of Strategic Capital has previously done deals for rare earth and drone businesses.
U.S. Pentagon is negotiating mega-loan to Fluidstack
According to the Wall Street Journal on Thursday, Pentagon is in advanced talks to provide around $5 billion loan solution approximately to Fluidstack program. The startup uses artificial intelligence cloud-computing to strengthen US data center supply chain alongside contracts recently issued by Google and Microsoft. The cash would arrive through the Pentagon’s Office of Strategic Capital, the report said.
The loan would be used for building an AI data center by Fluidstack to bolster U.S. supply chain and manufacturing resource for some components needed for data centers.
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This deal follows President Donald Trump’s signing of an executive order declaring a national emergency in relation to the transmission system and banning some foreign equipment, which he said could be used for espionage, from the U.S. electricity grid that feeds data centers.
The Office of Strategic Capital has previously struck similar funding agreements with rare earth companies, including Vulcan Elements, Phoenix Tailings and Energy Fuels. It also previously funded some drone firms, such as Unusual Machines and Sequoia Capital-backed Neros, the Wall Street Journal had previously reported.
Source: Reuters
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