CoreWeave, an artificial-intelligence cloud-computing startup, has secured $7.5 billion in a historic debt financing round. This investment, backed by prominent firms including Blackstone, Carlyle Group, and BlackRock, marks one of the largest private debt financings in history.
This substantial influx of capital follows a $1.1 billion equity funding round just two weeks prior, which valued the burgeoning New Jersey-based company at $19 billion. Last year, CoreWeave also completed a significant $2.3 billion debt financing deal.
Positioned at the forefront of the AI revolution, CoreWeave provides access to Nvidia’s AI chips, which are vital for developing sophisticated AI systems like OpenAI’s ChatGPT. As of the end of last year, CoreWeave operated in 14 data centers, with plans to expand to 28 data centers by the end of this year.
Much of the new funding will support this expansion, including investments in AI chips and essential infrastructure such as servers and networking equipment. In a blog post, Michael Intrator, CoreWeave’s Chief Executive, emphasized the transformative nature of this financing. “It is a monumental financing in nominal terms, but it’s also a monumental financing in terms of the extent to which it drives the company forward,” Intrator said. He also noted that the $7.5 billion is expected to be fully committed this year, after which the company will likely seek additional funding.
The financing highlights robust investor confidence in AI-exposed businesses and underscores the enduring momentum of the AI boom, more than a year after ChatGPT captivated the public and spurred a surge of investments in AI and Nvidia.
CoreWeave is among several AI cloud-computing companies that have emerged recently, providing customers with early access to the latest AI chips and specializing in AI computing. Unlike the largest cloud-computing giants—Microsoft, Amazon, and Alphabet’s Google—CoreWeave focuses specifically on the AI niche, carving out a unique and strategic position in the market.
