Pentagon weighs $5 billion loan to AI cloud startup Fluidstack

The Pentagon is in discussions to extend a loan of approximately $5 billion to Fluidstack, an AI cloud-computing startup, in a move aimed at reinforcing the U.S. data-center supply chain, according to people familiar with the matter.

The reported talks, first disclosed on Thursday, underscore growing government interest in securing the infrastructure that underpins artificial intelligence development. Fluidstack is among a group of newer firms providing cloud computing capacity tailored to AI workloads.

Details of the potential loan, including its terms and timeline, were not immediately available. The reported discussions have not been confirmed by either the Pentagon or Fluidstack.

The development comes as demand for AI computing power continues to rise, prompting concerns about the capacity and resilience of domestic data-center infrastructure. A loan of this size would represent a significant federal intervention in the AI cloud sector.

Further information about the status of the talks was not immediately available.