CoreWeave closes $8.5 billion GPU-backed loan, first to achieve investment-grade rating

CoreWeave Raises $8.5 Billion GPU Loan Backed by Meta Deal

CoreWeave Inc. has raised $8.5 billion from a group of banks and investors to help finance an expansion of its cloud computing capacity in what the company says is the largest chip-backed debt deal of its kind. The investment-grade rated loan is secured by a combination of microchips, such as graphics processing units or GPUs, and a customer contract to use the chips, according to a statementBloomberg Terminal Tuesday. Bloomberg previously reported that the debt is backed by contracts with Meta Platforms Inc. worth at least $19 billion. CoreWeave can initially borrow up to $7.5 billion, which then increases to $8.5 billion once the chips are up and running. The high-yield rated company had already amassed a $21.6 billion debt pile as of the end of last year, along with an additional $3.7 billion of untapped borrowing capacity, according to its annual report. A group of banks and other institutions led by Mitsubishi UFJ Financial Group Inc. and Morgan Stanley provided the new loan. Goldman Sachs Group Inc. and JPMorgan Chase & Co. also joined the transaction. Blackstone Inc., which has been involved in similar CoreWeave dealsBloomberg Terminal, was an anchor investor. The loan is the latest example of an industrywide debt binge as technology companies find new ways to raise money for constructing the underpinnings of the artificial intelligence boom. Conservative estimates peg a wave of AI spending at $3 trillion or more, and the microchips can cost multiple times more than data centers they go into. "There is just so much demand for this infrastructure, it's truly not stopping," said Brannin McBee, chief development officer and CoreWeave co-founder, in an interview. "This type of financing that we are doing is the most sophisticated and scalable way to finance the build-out of artificial intelligence infrastructure." The Livingston, New Jersey-based CoreWeave has dramatically ramped up its borrowing in recent years to finance deals in which it rents access to high-end artificial intelligence processors. Using chips and related contracts to back its debt allows the company to get significantly cheaper borrowing costs. And winning a high-grade rating on a debt deal opens up access to a wider swath of investors. The market for GPU loans, which are typically unrated, is nascent but expected to balloon in the coming years. While data are scarce on what are often private deals, CoreWeave's $8.5 billion facility is the largest completed transaction so far, according to the company. Lenders view debt secured by microchips as a safer way of putting money to work -- especially when backed by a contract from a highly rated company such as Meta. The money from the contract creates cash flow to fund interest payments and pay back debt. Typically these deals are structured so that a special purpose vehicle is used to raise the funds and owns the chips, and the debt is paid back in full over the life of the loan. Cheaper Borrowing CoreWeave's loan received an A3 rating from Moody's Ratings, placing it solidly in the investment-grade category, allowing insurance firms -- which have stricter capital requirements -- to buy the debt. Banks, asset managers and insurance investors participated in the transaction. This is the fourth GPU loan that CoreWeave has raised. The Meta contract and investment-grade rating helped the company lock in a cheaper interest rate. The facility has two portions: a floating-rate tranche with a margin of 2.25 percentage points over the Secured Overnight Financing Rate, and a fixed-rate tranche financed at about 5.9%. The new loan's borrowing rate is about 7.5 percentage points cheaper than the first GPU loan CoreWeave did in 2023, according to Nick Robbins, vice president of corporate development. "Being able to borrow at an investment-grade cost of capital is strategically important," Robbins said. "Dragging down our cost of capital has long been one of the imperatives for our business as we grow." That's much cheaper than at the company level, where CoreWeave carries a high-yield rating from each of the top three credit ratings firms. The company soldBloomberg Terminal two junk bondsBloomberg Terminal last year which currently trade with a yield of around 10%. The average junk bond has a yield of around 7.7%, according to a Bloomberg gauge. CoreWeave has also tappedBloomberg Terminal the convertible bond market. CoreWeave's new facility is in the form of a delayed-draw term loan, so the company can choose to draw the full amount over a period of time. The deal was oversubscribed, meaning there was more investor demand than the $8.5 billion figure. The loan matures in March 2032.

CoreWeave secures $8.5 billion loan to expand AI infrastructure

March 31 (Reuters) - Cloud infrastructure firm CoreWeave (CRWV.O), opens new tab has secured $8.5 billion in financing through a delayed-draw term loan facility to expand its artificial intelligence cloud platform, as demand for computing power continues to surge. This brings the total equity and debt financing commitments secured ⁠by CoreWeave in the past 12 months to about $28 billion. Here are details from the company's statement on Tuesday: Reporting by Harshita Mary Varghese in Bengaluru; Editing by Jonathan Ananda Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave's $8.5 Billion Financing & 12% Stock Surge: A Deep Dive

CoreWeave, Inc. CRWV recently closed an $8.5 billion delayed draw term loan facility (DDTL 4.0), highlighting how financial markets are evolving to support the explosive growth of AI. With the DDTL 4.0 Facility, CoreWeave can access capital in stages as it scales its infrastructure. Initially, the company can borrow up to $7.5 billion, with the flexibility to expand to $8.5 billion as its underlying assets mature and stabilize. This is the first time in history that a loan backed by HPC assets, such as GPUs, has received investment-grade ratings (A3 by Moody's). The first investment-grade GPU-backed financing confirms strong AI infrastructure demand, reduces capital costs, increases profitability potential and caused a 12% stock jump on the last trading day as investors bet on AI infrastructure's long-term value. Investment-grade ratings lower CRWV's borrowing costs and boost investor confidence, enabling it to secure favorable financing rates (SOFR + 2.25% floating, roughly 5.9% fixed) despite operating in a capital-intensive, emerging technology sector. However, CoreWeave faces risks, including high debt from its aggressive, debt-funded expansion that depends on continuous revenue growth, customer concentration among a few large AI and hyperscale clients, reliance on NVIDIA for GPU supply and pricing power, and execution risks in scaling data centers, such as power constraints, construction delays and operational complexity. Over the past 12 months, it has secured approximately $28 billion in combined equity and debt financing. As of Dec. 31, 2025, long-term debt was $14.7 million compared with $5.5 million a year earlier. It expects 2026 CapEx of $30-$35 billion, more than doubling 2025 levels, which will likely pressure near-term profits due to the timing gap between upfront costs and the gradual revenues from new capacity. Microsoft $MSFT Corporation MSFT maintains substantial debt levels accumulated through acquisitions and share repurchases, reducing financial flexibility. Long-term debt (including current portion) was $40.3 billion as of December 2025. Rising interest rates increase debt servicing costs, directly hurting profitability and cash available for productive investments. High goodwill and intangibles create impairment risk, while weak working capital, higher leverage and rising interest costs suggest Microsoft has weakened its balance sheet to fund growth and buybacks, leaving less cushion against economic or competitive pressures. It expects the fiscal 2026 capex growth rate to be higher than fiscal 2025, driven by accelerating demand and a growing RPO balance. Image Source: Zacks Investment Research In terms of Price/Book, CRWV's shares are trading at 8.98X, higher than the Internet Software Services industry's 4.19X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CRWV's earnings for the current year has been drastically revised downward over the past 60 days. Image Source: Zacks Investment Research CRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CoreWeave posts benchmark gains on Nvidia GB200, GB300 systems By Investing.com

LIVINGSTON, N.J. - CoreWeave Inc. (NASDAQ:CRWV) reported results from the MLPerf Inference v6.0 benchmark suite, using Nvidia GB200 NVL72 and GB300 NVL72 infrastructure in the Datacenter Closed division, according to a press release statement. The company's GB200 NVL72 configuration led performance for DeepSeek-R1 in server and offline modes measured in tokens per second per GPU. The GB300 NVL72 system delivered results on DeepSeek-R1 that were twice CoreWeave's MLPerf 5.1 results on the same hardware footprint. CoreWeave tested two reasoning models: DeepSeek-R1 and GPT-OSS-120B. The GB200 configuration showed throughput on DeepSeek-R1's sparse Mixture-of-Experts architecture. "Benchmarks like MLPerf help measure how theoretical performance translates into real-world output," said Peter Salanki, co-founder and chief technology officer of CoreWeave. "These latest results reflect our ability to deliver exceptional performance for the most demanding frontier reasoning models at scale through full-stack optimization." The company stated that eight of the top 10 model providers use CoreWeave Cloud. CoreWeave previously received Platinum ranking in SemiAnalysis ClusterMAX 1.0 and 2.0 evaluations. CoreWeave completed its public listing on Nasdaq in March 2025. The company provides cloud infrastructure for artificial intelligence workloads. Despite impressive revenue growth of 168% over the last twelve months, the stock has declined 43% over the past six months and trades at $78.16, down from its 52-week high of $187. According to InvestingPro analysis, the stock appears undervalued at current levels, with shares trading below Fair Value. The company carries a market capitalization of $40.7 billion, though InvestingPro Tips highlight that it operates with significant debt and is quickly burning through cash -- two of 15+ additional insights available to subscribers. The tokens per second per GPU metric used by CoreWeave is not an official MLPerf metric and was applied to normalize submissions using different numbers of GPUs. In other recent news, CoreWeave announced the closing of an $8.5 billion delayed draw term loan facility to support the expansion of its AI cloud platform. This facility has received investment-grade ratings of A3 from Moody's and A (low) from DBRS, marking a significant milestone for financing secured by high-performance computing infrastructure. The company stated that the offering was oversubscribed, attracting participation from global financing institutions, asset managers, and insurance investors. Analysts at Evercore ISI reiterated an Outperform rating with a $120.00 price target following the announcement, while Citizens maintained a Market Outperform rating with a $180.00 price target, citing the strength of the debt financing. Stifel, on the other hand, reiterated a Hold rating with a $110.00 price target, noting the facility as a checkpoint in CoreWeave's efforts to establish itself as an investment-grade infrastructure player. The new facility, referred to as DDTL 4.0, reduces CoreWeave's weighted average cost of capital, further enhancing its financial positioning. The company can initially borrow up to $7.5 billion, with the potential to increase borrowing capacity to $8.5 billion as assets stabilize. These developments highlight CoreWeave's strategic financial moves to bolster its infrastructure and expand its AI capabilities. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Coreweave closes landmark $8.5 billion financing facility, achieving first investment-grade rated GPU-backed financing

CoreWeave, Inc. is an American technology company founded in 2017, specializing in cloud infrastructure designed for compute-intensive workloads. It has positioned itself as a niche player in a market dominated by generalist giants. Its offering is built on a vertical specialization in artificial intelligence (AI) and related applications, notably high-performance computing (HPC) and graphical rendering. CoreWeave operates a GPU-first architecture, optimized for training and inference of generative AI models. It also targets scientific and financial computing, as well as real-time 3D rendering needs. With its own data centers located in the United States and Europe, the company maintains full control over its infrastructure. This control enables it to deliver high performance, low latency, and flexible deployment capabilities. Some facilities are shared among clients, while others are fully dedicated to a single customer. CoreWeave serves a diverse clientele, ranging from AI startups to research labs, as well as production studios and financial institutions. In addition to its hardware infrastructure, the company develops its own GPU management software. These tools enable intelligent resource allocation, continuous performance optimization, and better cost control. This vertical integration, from hardware to software, enhances the company's competitiveness. CoreWeave stands out through its tailored approach and its ability to meet clients' specific needs. It aims to become the leading provider for AI workloads on a global scale. In a context of surging demand for computing power, its model is appealing due to its specialization and agility.