Fresh off a $1.1 billion equity round, artificial intelligence infrastructure startup CoreWeave has raised $7.5 billion in debt to make larger investments in its cloud data centers.
black stone The fund led the financing round, with Cotu, Carlyle, black rock others. An equity raise two weeks ago valued Coreweave at $19 billion.
Investors are flocking to CoreWeave because the 550-employee company is one of its primary providers. Nvidia’s A chip for running AI models. Since the announcement of OpenAI’s ChatGPT in late 2022, demand for the technology has skyrocketed as companies from virtually every sector race to integrate AI chatbots into their products.
Nvidia’s AI-focused graphics processing units are in limited supply, making CoreWeave’s access to the processor a hot commodity. This means that Nvidia-backed CoreWeave will compete against the world’s top cloud infrastructure operators, including: Amazon and Google.
CoreWeave claims on its website that its on-demand pricing is the lowest of any major cloud company.flat microsoftthe world’s second-largest cloud infrastructure provider, began relying on CoreWeave to provide the computing power needed for OpenAI.
Colette Kress, Nvidia’s head of finance, said at a Citigroup event in September that CoreWeave is “very skilled just in terms of speed of adoption, speed of setup.” .
A CoreWeave spokesperson declined to comment on whether the company is using Nvidia GPUs as collateral for new debt financing. Such GPUs were used as collateral in his $2.3 billion debt round last year. Reuters report.
The new debt will help CoreWeave pay for GPU-equipped servers, network equipment and cabinets, a spokesperson said.
Correction: An earlier version of this article misspelled Colette Kress’ name.