CoreWeave Raises $7.5B In Debt For AI Push

CoreWeave’s big May continued, as the AI cloud infrastructure startup raised a $7.5 billion debt facility from the likes of Blackstone, Magnetar and Coatue.

Earlier this month, CoreWeave announced it had raised a whopping $1.1 billion in a fresh funding round led by Coatue in a deal valuing the company at $19 billion, per The Wall Street Journal. That represents an almost threefold increase from the company’s valuation just five months earlier, when it was valued at $7 billion following a secondary sale, and a huge jump from its $2 billion valuation in a Series B extension last May.

Then just last week, the Nvidia-backed company announced its new European headquarters in London, in addition to a commitment to invest $1.25 billion into the continent.

Big money

CoreWeave has now raised more than $12 billion in equity and debt through the past 12 months, per the company. Just last August, CoreWeave raised another debt financing worth $2.3 billion.

The company, which gives access to highly sought after AI chips from Nvidia, operated in 14 data centers at the end of last year and anticipates doubling its data center footprint to 28 globally by the end of 2024.

“CoreWeave is building the infrastructure to power the AI innovations that are already changing how businesses operate in the global economy,” said co-founder and CEO Michael Intrator in a statement. “The caliber of investors in this large debt financing round is a powerful testament to both the insatiable market appetite for AI infrastructure and their belief in CoreWeave’s ability to deliver cutting edge innovation for the largest AI labs and innovators at scale.”

Other firms that participated in the new debt finance include Carlyle, CDPQ, DigitalBridge Credit, funds and accounts managed by BlackRock, Eldridge Industries and Great Elm Capital.