Advanced Micro Devices (NASDAQ:AMD) has reportedly agreed to guarantee a $300 million loan for cloud computing startup Crusoe.

AMD has proposed a deal to buy back its chips from Crusoe if the startup is unable to attract customers like AI developers. The arrangement, backed by a loan from Goldman Sachs (NYSE:GS), will be collateralized with the chips and associated equipment, The Information reported on Thursday.

With AMD acting as a backstop, Crusoe has locked in a loan interest rate of around 6%, substantially below what it would have otherwise achieved. The company is now installing AMD chips in an Ohio data center being built by 5C, a Canadian developer supported by Brookfield.

Crusoe, launched in 2018 as a cryptocurrency company, has pivoted to AI infrastructure and is part of the emerging “neoclouds” offering ...