According to a report from The Wall Street Journal, the government is working with Erebor Bank to advise on the deal.
This move marks a significant shift in strategy as the Pentagon explores direct financing for the hardware and facilities required to run advanced artificial intelligence.
This potential investment signals that the U.S.
government views the availability of AI chips and data center capacity as essential to national security.
By backing a neocloud—a provider that focuses specifically on renting out the high-end processors needed for AI workloads—the Pentagon aims to ensure a stable domestic supply of computing power.
This intervention highlights the intense competitive pressure to secure specialized hardware that is currently in high demand by both private industry and the military.
If the deal is completed, the funding will likely enable Fluidstack to significantly expand its inventory of powerful chips and infrastructure.
This mechanism would allow the startup to provide the massive scale of computation necessary for training and deploying complex AI models.
This arrangement would position the government as a key financier in the technology sector, potentially changing how emerging cloud companies scale their operations to meet both commercial and defense needs.