CoreWeave Secures $650 Million Credit Line to Fuel AI Cloud Computing Expansion

CoreWeave lands $650M credit line for AI cloud-computing expansion - SiliconANGLE

CoreWeave lands $650M credit line for AI cloud-computing expansion CoreWeave Inc., a cloud provider of graphics cards for artificial intelligence workloads, said today that it added a $650 million credit line led by major investment firms to scale its global operations. JPMorgan Chase, Goldman Sachs and Morgan Stanley led the credit facility, with participation from Barclays, CitiGroup, Deutsche Bank, Jefferies, Mizuho, MUFG and Wells Fargo. Before raising the credit facility, the company raised $12.7 billion in equity and debt over the past 18 months, including a $1.1 billion round in May valuing the company at $19 billion. "This credit facility provides additional liquidity to accelerate our growth strategy and capitalize on new opportunities in the rapidly evolving AI space," said Mike Intrator, chief executive and co-founder of CoreWeave. CoreWeave operates a public cloud that provides access to Nvidia Corp. graphics processing units, targeting two main use cases: artificial intelligence and graphics rendering. Some of its processors include the powerful Nvidia H100 and H200 GPUs, which are built to provide accelerated computation power for AI workloads. Training and deploying large language model AIs require a tremendous amount of compute. Larger and more complex models need to be spread over multiple high-performance GPUs. Big models are commonly used for cutting-edge tasks such as content creation, video production, question answering, document analysis, intelligent AI agents and other applications demanding advanced reasoning. CoreWeave says its infrastructure gives companies a software cloud scaling advantage for hosting their AI models. Investments in AI companies are thriving as demand for AI and compute continues to grow. OpenAI raised a $4 billion revolving credit line earlier this month alongside a $6.6 billion funding round. Many of the same banks involved in CoreWeave's credit facility also joined that line of credit. The company recently opened a European headquarters in London and committed to invest $3.5 billion into expanding into Europe. This included opening two UK data centers and plans to build three new data centers in Norway, Sweden and Spain. CoreWeave currently operates 14 data centers, but with these new funds, the company expects to double that capacity to 28 operations globally by the end of 2024, with an additional 10 data centers planned for 2025.

Nvidia-backed CoreWeave gets $650 million credit line from top Wall Street banks

CoreWeave, an Nvidia-backed artificial intelligence startup that rents out chips to other companies, announced Friday that it has a new $650 million credit line to expand its business and data center portfolio. The cloud infrastructure company said it's raised $12.7 billion from equity and debt investors in the past 18 months, including a $1.1 billion round in May at a $19 billion valuation. By the end of 2024, CoreWeave plans to have 28 data centers across the U.S. and abroad -- including locations in Austin, Texas, Chicago, Las Vegas and London -- and it plans to build another 10 data centers in 2025. In the past, CoreWeave has supplied Microsoft and French AI startup Mistral with graphics processing units, or GPUs. As of last year, CoreWeave reportedly had $2 billion in revenue under contract lined up for 2024. AI models are notoriously expensive to build and train, requiring thousands of specialized chips that, to date, have largely come from Nvidia. Most, if not all, tech companies that are power players in AI spend between hundreds of thousands and billions of dollars on Nvidia chips to make their models work. And in addition to developing the chips, Nvidia has taken stakes in emerging AI companies like CoreWeave, partly as a way to make sure its technology gets widely deployed. Goldman Sachs, JPMorgan Chase and Morgan Stanley led the financing CoreWeave announced Friday, with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG and Wells Fargo. "This credit facility provides additional liquidity to accelerate our growth strategy and capitalize on new opportunities in the rapidly evolving AI space," Mike Intrator, CoreWeave's co-founder and CEO, said in a press release. CoreWeave's new credit line is part of a broader trend, as banks are positioning themselves for a slice of the AI gold rush ahead of a number of potential IPOs in the space. The generative AI market is poised to top $1 trillion in revenue by 2032, according to one estimate. Last week, OpenAI received a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion. The news came just after OpenAI closed its latest funding round at a $157 billion valuation. Many of the same banks contributed to OpenAI's credit line. The startup has an option to increase it by an additional $2 billion. CoreWeave declined to provide details about the interest rate it's paying or the timeframe for the credit facility.

CoreWeave Closes $650 Million Credit Facility for AI Cloud-Computing Push

CoreWeave Inc., a cloud-computing provider that's among the most valuable artificial intelligence startups, has closed a $650 million credit facility led by JPMorgan, Goldman Sachs, and Morgan Stanley that is intended to be used to support growth. The loan agreement increases the amount raised by debt and equity investors over the last 18 months to $12.7 billion, the Roseland, New Jersey-based CoreWeave said in a statement Friday. Other participating banks in the credit facility include Barclays, Citibank and Jefferies.