The Pentagon is reportedly in talks with AI cloud provider Fluidstack regarding $5 billion in debt funding.. As first reported by the Wall Street Journal, citing people familiar with the matter, the loan would be provided by the Pentagon’s Office of Strategic Capital.. The funding would be used by Fluidstack for the manufacturing capacity for components related to data centers rather than expanding its data center footprint, according to WSJ..
The deal has not been finalized and remains subject to change.. A Pentagon spokesman told WSJ: “The Department does not comment on transactions that are either pending or in the middle of negotiations until the press release comes out.”. DCD has reached out to Fluidstack for comment..
Fluidstack is an AI cloud firm. Originally founded in 2017 in London, the company relocated its headquarters to the US, and it is currently building data center capacity out across multiple locations in the States, including in New York, Indiana, Louisiana, and Texas.. Fluidstack has an ongoing partnership with Google and Anthropic, under which Google guarantees data center deals to help Fluidstack raise funding at an attractive rate.
Should Fluidstack fail to follow through, Google will then assume the lease or pay the termination fee. Anthropic is then set to lease compute capacity from Fluidstack, including Google’s TPUs.. The Pentagon’s Office of Strategic Capital provides loans to companies that do work it deems critical to US national security.
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