Pentagon in talks to lend $5 billion to AI cloud startup Fluidstack
The Pentagon is in talks to lend approximately $5 billion to artificial intelligence cloud-computing startup Fluidstack. Funded by the Office of Strategic Capital, this loan represents the office's largest deal to date and aims to secure the United States data center supply chain and manufacturing capacity. The initiative follows a national emergency declaration by President Donald Trump banning certain foreign equipment from the domestic electricity grid that powers these critical data centers.
Pentagon loan to Fluidstack
▪Fluidstack would use the proposed $5 billion Pentagon loan to shore up the United States supply chain and manufacturing capacity for specific data center-related components
▪The proposed $5 billion loan to Fluidstack would add the United States military to the growing list of financiers of artificial intelligence infrastructure
▪The proposed $5 billion loan to Fluidstack would represent the largest loan to date from the Pentagon's Office of Strategic Capital
▪The Pentagon is in talks to lend approximately $5 billion to artificial intelligence cloud-computing startup Fluidstack, according to sources familiar with the matter
U.S. data center supply chain
▪United States data centers rely on the domestic electricity grid, which is subject to national security regulations regarding the use of foreign equipment
▪The Pentagon's proposed loan to Fluidstack aims to shore up the United States data center supply chain and manufacturing capacity for certain data center-related components rather than funding a new artificial intelligence facility outright
Pentagon Office of Strategic Capital
▪The Pentagon's Office of Strategic Capital, which was launched under the Biden administration, provides loans to companies working in areas deemed critical to United States national security
▪The Pentagon's Office of Strategic Capital has previously struck funding deals with rare earth companies including Vulcan Elements, Phoenix Tailings, and Energy Fuels
▪The Pentagon's Office of Strategic Capital has previously provided funding to drone companies, including Unusual Machines and Sequoia Capital-backed Neros
Trump foreign equipment ban
▪The executive order signed by United States President Donald Trump in August 2026 bans the use of certain foreign equipment in the United States electricity grid, which is utilized by data centers
▪United States President Donald Trump signed an executive order in August 2026 declaring a national emergency regarding the security of the United States electricity grid
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