Advanced Micro Devices (AMD) is backing a $300 million loan by tech startup Crusoe to purchase and install its AI chips in an Ohio data center, The Information reported Thursday, citing sources with knowledge of the deal.

The loan from Goldman Sachs Group (GS) will have AMD chips and equipment as debt collateral, the sources said.

AMD is backstopping the loan by agreeing to rent its own chips from Crusoe if the startup lacks customers, which help Crusoe secure an interest rate of about 6% for the loan, the sources added.

The move is similar to the strategy employed by AMD competitor Nvidia (NVDA) to drive growth and increase sales, according to the report.

Goldman Sachs declined to comment, while AMD and Crusoe did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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