CoreWeave, an artificial intelligence (AI) startup backed by Nvidia, announced that it has secured a $650 million credit line to support its growing cloud infrastructure business. The company, which rents out specialized chips to other firms, aims to accelerate its expansion and continue building its portfolio of data centers, fueled by the increasing demand for AI technologies.
In the last 18 months, CoreWeave has raised $12.7 billion through equity and debt, including a $1.1 billion funding round in May that valued the company at $19 billion. The startup plans to establish 28 data centers across the U.S. and internationally by the end of 2024, including in key cities such as Austin, Texas, Chicago, Las Vegas, and London. An additional 10 data centers are expected to be built in 2025, further positioning CoreWeave as a major player in the AI infrastructure space.
CoreWeave has already supplied AI hardware, particularly graphics processing units (GPUs) from Nvidia, to companies like Microsoft and the French AI startup Mistral. These GPUs are critical to training and running AI models, which require significant computing power and specialized chips. With $2 billion in revenue under contract for 2024, CoreWeave is well-positioned to support the ongoing AI boom.
Nvidia, the leading supplier of chips for AI, has not only provided CoreWeave with crucial technology but also invested in the company. Nvidia’s involvement ensures its hardware remains central to the AI infrastructure provided by emerging firms like CoreWeave. AI models are expensive to build and train, often costing billions, and CoreWeave’s infrastructure plays a vital role in making this cutting-edge technology more accessible to other companies.
The financing deal, announced Friday, was led by major financial institutions, including Goldman Sachs, JPMorgan Chase, and Morgan Stanley, with participation from Barclays, Citi, Deutsche Bank, Jefferies, Mizuho, MUFG, and Wells Fargo. CoreWeave’s CEO and co-founder, Mike Intrator, stated that the new credit line provides liquidity to support the company’s growth strategy and seize emerging opportunities in the rapidly evolving AI space.
This credit facility is part of a broader trend, as financial institutions are eager to capitalize on the booming AI market. The generative AI market alone is projected to exceed $1 trillion in revenue by 2032, driving a surge in funding and expansion within the industry.
READ MORE: