This Week in Startups · Friday, September 11, 2026
The Pentagon is reportedly in discussions to provide a $5 billion loan to Fluudstack for AI infrastructure development. This potential loan, advised by Arabor Bank, would be the largest ever from the department's Office of Strategic Capital. The funds are intended to bolster US supply chain and manufacturing capabilities for AI components, rather than directly funding new data centers.
“This is The Pentagon deal. Uh, the Pentagon is in talks to lend Fluudstack $5 billion for AI infrastructure, Jason.”
“It would be the largest loan the department's Office of Strategic Capital has ever made.”
“Fluudstack being advised on that loan application by Arabor Bank, the brand new National Bank from Andrew Founder Palmer Lucky, specifically to serve tech and defense clients.”
“The money not earmarked for building a new AI data center, it's meant to shore up the US supply chain and manufacturing capacities behind the components that go into making data centers.”