AMD, Google and Oracle Reveal Three Different Models for Financing AI

AMD announced on August 6 that it would acquire Toronto-based Taalas, which develops chips that hardwire AI models into silicon as an alternative to general-purpose GPUs for inference. The company did not disclose the purchase price.

That changed on November 4, when AMD’s quarterly filing valued the cash-and-stock deal at about $2.9 billion, according to Securities.io. Up to approximately $1.4 billion of the amount is contingent consideration. The filing does not specify the conditions attached to that payment or how it will be divided between cash and stock. The headline valuation, therefore, is not entirely fixed.

AMD expects to complete the acquisition by the end of 2026, subject to regulatory approval.

Taalas was founded in 2023 by Ljubisa Bajic, a former Tenstorrent chief executive, alongside Lejla Bajic and Drago Ignjatovic. BetaKit reports that the company raised $169 million earlier this year.

“We founded Taalas to rethink AI inference from the ground up,” Ljubisa Bajic said when the acquisition was announced in August.

Google: a guarantee with strings

On November 4, TeraWulf disclosed that Google would provide credit support for Anthropic’s lease at the Justified Data Campus in Hawesville, Kentucky.

The lease is part of a 20-year agreement announced in July, covering approximately 401 megawatts and supporting about $19 billion in lease commitments, according to Unite.AI’s summary of TeraWulf’s filings.

The guarantee comes with conditions. If Anthropic defaults or becomes insolvent, Google can pay the rent due and assume the lease or, in specified circumstances, pay a termination fee.

The arrangement ends once Anthropic, or an affiliate guaranteeing its obligations, maintains specified investment-grade credit ratings for at least three months.

In return, Anthropic must use only Google-approved tensor processing units (TPUs) at the facility. For six years after the backstop takes effect, Google cannot opt for the termination route unless the installed TPU pods can use less than half of the tenant’s critical power capacity.

Paying the termination fee also gives Google the right to acquire an equity interest in Raylan, the landlord.

Alphabet’s senior debt is rated AA+ by S&P and Aa2 by Moody’s. Construction deliveries are expected between late 2027 and the second quarter of 2028. Project debt financing has not yet been completed.

Oracle: the market sets the price

Oracle’s capital raise was more straightforward. On November 2, the company said it planned to raise about $20 billion, split roughly equally between stock and bonds.

It priced 86.2 million shares at $116 each, an 11.2% discount to Friday’s closing price. The bond offering comprised five tranches maturing between 2029 and 2046, with coupons ranging from 7% to 8.65%.

Oracle shares fell 8.8% to $119.22 on Monday and are down about 39% this year. As of August 31, the company had approximately $125.34 billion in notes payable and other borrowings.

Investors have questioned Oracle’s AI spending, citing its smaller revenue base compared with Microsoft and Amazon and its significant exposure to OpenAI, Reuters reported in an article carried by AOL. Oracle’s 6.85% bonds due in 2066 also fell by more than 1.2 cents on the dollar.

The company has also set limits on its future borrowing. According to SEC filings cited by Tech Startups, Oracle has committed to cap additional capital-market fundraising through fiscal 2030 at $20 billion, excluding refinancing.

Chief financial officer Hilary Maxson said free cash flow should turn positive in the second half of fiscal 2028. Oracle shares subsequently rallied about 11% on Wednesday, Reuters reported.

None of the three transactions had fully played out at the time of reporting. AMD’s acquisition remains subject to regulatory approval. Google’s credit support is tied to the lease and takes effect under specified conditions as the data halls come online. Oracle’s capital raise was expected to close on November 4.