Occidental Trims Spending as AMD Backs $300M AI Infrastructure Loan

By / / Breaking News

Key Takeaways

  • Occidental Petroleum (OXY) plans to slash U.S. onshore capital spending by $400 million in 2026 compared to 2025 levels.
  • Advanced Micro Devices (AMD) is backstopping a $300 million loan for Crusoe, utilizing its own AI chips as collateral for the debt.
  • The UK Government secured £5.6 million in new funding from OpenAI to support the AI Security Institute’s (AISI) Alignment Project.
  • Occidental expects capital spending to continue its downward trajectory through 2027 as it prioritizes debt reduction and cash flow.
  • A global coalition including Amazon Web Services (AMZN) and Anthropic has joined Microsoft (MSFT) in backing the UK’s international AI safety initiatives.

Occidental Signals Multi-Year Spending Decline

Occidental Petroleum (OXY) announced a significant pivot toward capital discipline, revealing that its U.S. onshore spend will fall by $400 million in 2026 relative to 2025. The company expects lower volumes in the first quarter of 2026 and slightly lower midstream earnings for the full year.

Management indicated that capital spending is expected to decline further into 2027, a move aimed at strengthening the balance sheet following major acquisitions like CrownRock. The company anticipates better visibility into macroeconomic trends during the second half of 2026, allowing for more tactical adjustments to its Permian Basin and Rockies operations.

AMD Leverages Hardware for Strategic Financing

In a novel move to expand its footprint in the AI data center market, Advanced Micro Devices (AMD) is backstopping a $300 million loan for Crusoe. According to reports from The Information, the deal is uniquely structured with Crusoe pledging AMD chips as collateral to secure the debt.

This financing arrangement highlights the growing value of high-end silicon as a financial asset in the AI era. By backstopping the loan, AMD is effectively lowering the barrier for "neocloud" providers to deploy its Instinct MI355X accelerators, directly challenging the market dominance of Nvidia.

UK Secures Major Pledges for AI Security

The UK Government has confirmed a major expansion of its AI Security Institute (AISI), bolstered by new funding from OpenAI and Microsoft (MSFT). OpenAI has pledged an additional £5.6 million to the institute’s Alignment Project, an initiative focused on ensuring advanced AI systems remain under human control.

The project is now supported by a broad international coalition that includes Anthropic and Amazon Web Services (AMZN). This influx of capital and corporate partnership is intended to fund research into AI alignment, building public trust as the technology is integrated into critical public services and national infrastructure.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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